Trey Parker and Matt Stone, the creators behind South Park, claim that Skydance Media is interfering with negotiations for a lucrative streaming agreement that could bring in as much as $2.5 billion. The duo approached Paramount Global, which owns the long-running animated series, in February, expressing their desire to continue making South Park well beyond the current deal that expires in 2027. Talks were already underway to secure a new streaming arrangement, with interest from HBO Max, the current rights holder, and other major players including Netflix.
However, Skydance Media — the independent studio trying to acquire Paramount — reportedly began contacting companies like Netflix and Warner Bros. Discovery, HBO’s parent company, to express its own terms and preferences. This move provoked a strong reaction from Parker and Stone, who threatened legal action in a letter obtained by Bloomberg News.
“It has come to our attention that in recent days you contacted both Netflix and Warner Bros. Discovery to interfere in the process,” their attorney wrote in a letter addressed to RedBird Capital Partners, an adviser to Skydance and stakeholder in the Paramount transaction.
Paramount had been planning to divide U.S. streaming rights between HBO Max and Paramount+, with each platform expected to pay more than $1 billion over a decade. HBO Max’s portion was reportedly contingent on Parker and Stone committing to produce dozens of new episodes.
Skydance, led by CEO David Ellison, defended its involvement, saying it is simply enforcing the rights it would gain under the merger agreement.
“Under the terms of the transaction agreement, Skydance has the right to approve material contracts,” the company stated.
The dispute has strained relations between Paramount and Parker and Stone, one of its most valuable creative teams, before the Skydance deal is even finalized. It also highlights the broader turmoil surrounding the delayed merger, which has been complicated by a lawsuit from President Donald Trump against Paramount’s CBS division and the need for federal regulatory approval.
Ellison, the son of Oracle founder Larry Ellison, is poised to take over as Paramount CEO. He and his adviser Jeff Shell of RedBird have advocated for either a shorter five-year streaming deal with HBO Max and Paramount+ or a single global licensing deal with Netflix. As negotiations dragged on, Paramount was forced to sign a temporary extension with HBO Max.
Despite the uncertainty, South Park remains a major streaming draw nearly three decades after its 1997 debut on Comedy Central. Created by Parker and Stone while at the University of Colorado Boulder, the show quickly became a pop culture phenomenon, spawning a hit film and video games. In a 2007 renegotiation, the pair secured a 50% stake in future online distribution rights—assets that could now be worth billions.
In 2019, they licensed streaming rights to HBO Max in a five-year deal reportedly valued at over $500 million. Paramount executives, however, later regretted the deal because it prevented them from leveraging the show on their own platform. To address this in the current round of talks, they aimed to split rights between Paramount+ and an outside service to maximize revenue and platform visibility.
Skydance, wary of long-term commitments in a volatile media landscape, has pushed for a shorter deal with HBO Max or a more streamlined global agreement with Netflix. While that could save money, it might also exclude South Park from Paramount+, a loss that Parker and Stone argue would reduce the overall value of the brand.
Parker and Stone’s company believes that a multi-platform strategy—HBO Max, Paramount+, and separate international licensing—is more valuable than a single Netflix agreement. But the deals are contingent on the creators staying involved; their absence would diminish the appeal and price of any contract.
“It is simply outrageous that even before it has been granted the authority to close the merger with Paramount, RedBird and Skydance are jumping the gun,” their production company, Park County, wrote in a letter first reported by The Hollywood Reporter. A follow-up letter dated June 23 warned Paramount not to “acquiesce to third parties, who have no right to engage in negotiations” on Park County’s behalf. Longtime attorney Kevin Morris is leading talks for Parker and Stone.
Although Skydance sees clear value in South Park, executives feel Paramount’s previous $900 million deal with the creators—covering both series episodes and original movies for Paramount+—was overly generous. The next deal would exceed that value annually, and Skydance wants more output in return.
Ellison will inherit a struggling media empire. Paramount’s cable channels are losing viewers, and its film studio lags behind competitors. While Paramount+ has grown, it remains far behind giants like Netflix and Disney+. Skydance and RedBird are reportedly planning to invest more than $8 billion in the merged company while enacting cost cuts.
Initially, Parker and Stone welcomed Ellison’s arrival, seeing him as a potential fresh start after clashing with previous Paramount leadership.
“I’m pretty excited about David Ellison,” Stone said last year at Bloomberg’s Screentime conference.
But as the merger delays stretch on, tensions are rising. Hollywood power agent Ari Emanuel, who has represented both Ellison and the South Park creators, has been working to mediate between the sides, though he has declined to comment.
New episodes of South Park are scheduled to air next month. Where viewers will be able to stream them, however, remains an open question.
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