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A legal threat from investor Mario Gabelli was a “major factor” in this week’s implosion of Shari Redstone’s $8 billion deal to merge Paramount Global with its “Mission: Impossible” production partner Skydance Media, The Post has learned.

When Redstone made a surprise move to pull the plug on the deal this week — just before a Paramount special committee was poised to vote on it — she was looking down the barrel of a $100 million-plus lawsuit from Gabelli over the deal, according to sources close to the situation.

The 70-year-old media heiress hadn’t been in any recent discussions with Gabelli, who has long been a key Paramount investor, sources close to the situation said.

Nevertheless, other Paramount shareholders had ripped Redstone for seeking a premium for her stock over other that of other Paramount investors.

A rep for Redstone didn’t immediately respond to a request for comment.

In an exclusive interview with The Post, the 81-year-old billionaire — a self-described “Bronx tough guy” long famous for his savvy media investments — declined to discuss any specifics around prospective litigation over Paramount.

But he also didn’t deny it may have been in the cards.

“Like Teddy Roosevelt said, I speak softly and carry a big stick,” Gabelli said. “We have established a relationship with an attorney and are looking at all of this under a microscope.”

Redstone — daughter of the late media mogul Sumner Redstone — controls Paramount through her 77% stake in National Amusements, a holding company that controls Paramount’s voting shares.

Gabelli, meanwhile, owns more than half of the remaining voting shares — 54% to be exact, according to securities filings.

In addition to Skydance recently slashing its proposed payment for National Amusements to $1.7 billion from more than $2 billion, sources say a sticking point in talks was whether Skydance would indemnify Redstone against potential litigation in the event she didn’t seek shareholder approval for the deal.

Indeed, sources say Gabelli’s legal team was focused on National Amusements — leaving Redstone herself with the lion’s share of the liability.

Redstone’s lawyer reportedly emailed the Paramount special committee Tuesday saying it and Skydance could not agree on outstanding noneconomic terms. Insiders say legal liabilities around the shareholder vote were a major issue.

“People look at Gabelli as an activist and litigator,” said one Wall Street analyst who covers Paramount’s stock.

“Shari and the Paramount special committee know damn well how the vote would have gone if there was an independent vote,” the analyst added.

It wouldn’t be the first time Gabelli extracted his fair share from Redstone in court.

In April last year, shareholders including Gabelli won a $122.5 million settlement over Viacom’s $30 billion merger with CBS — the deal that formed Paramount Global.

Gabelli had griped that Redstone and a Viacom special committee breached their fiduciary duty when they okayed the deal without shareholder approval.

Sources say Gabelli believes the Skydance deal was even worse, given the rich premium Redstone was seeking for her stock.

Insiders say Redstone feared Gabelli’s wrath despite the fact that the voting and common stock would have been consolidated in a shareholder vote on a Skydance merger, curbing Gabelli’s influence.

Now, Redstone is reportedly exploring a sale of National Amusements to bidders including Edgar Bronfman Jr. rather than selling all of Paramount.

“One possible theory of what’s going on is if she cuts a deal to sell part of National Amusements, there is no litigation,” Gabelli said.

That’s not necessarily a safe bet, either. According to sources, Bronfman is weighing a plan to split Paramount Global’s streaming business from its low-growth cable channels, saddling the latter with the company’s debt.

Technically, Redstone wouldn’t need shareholder approval for a National Amusements sale.

But if a buyer then moved to make changes at Paramount Global, it could trigger shareholder objections over change of control provisions, sources said.

“If she attempts to sell NAI, we have six months to figure out if it is a change of control while the FCC examines the deal,” Gabelli said.

In an exclusive April interview with The Post, Gabelli said he’d rather see no sale.

Despite fears over the media giant’s debt load, malaise at movie theaters and cable TV cord-cutting, Gabelli said he likes its prospects as it slashes costs and grows its Paramount+ streaming service.

That’s a position he reiterated this week.

Gabelli said he believes the streaming business including Paramount+ will surge in value to $19 billion in 2027 from $13 billion this year.

The film business, he projects, also will more than double in value from $830 million to $1.7 billion in three years.

“We’re marathon runners and looking at Paramount from a long-term ownership position,” Gabelli told The Post.

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UK

Eight arrests in connection with two separate terrorism investigations

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Eight arrests in connection with two separate terrorism investigations

Eight men have been arrested by the Metropolitan Police in two unconnected terrorism investigations.

In one operation on Saturday, counter-terror officers arrested five men, four of whom are Iranian nationals. All are in police custody.

The Met said the arrests related to a “suspected plot to target a specific premises”.

In an update shortly after midnight, the force said: “Officers have been in contact with the affected site to make them aware and provide relevant advice and support, but for operational reasons, we are not able to provide further information at this time.”

It added officers were carrying out searches at a number of addresses in the Greater Manchester, London and Swindon areas in connection with the investigation.

It said those detained were:

• A 29-year-old man arrested in the Swindon area
• A 46-year-old man arrested in west London
• A 29-year-old man arrested in the Stockport area
• A 40-year-old man arrested in the Rochdale area
• A man whose age was not confirmed arrested in the Manchester area.

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Commander Dominic Murphy, head of the Met’s Counter Terrorism Command, said: “This is a fast-moving investigation and we are working closely with those at the affected site to keep them updated.

“The investigation is still in its early stages and we are exploring various lines of enquiry to establish any potential motivation as well as to identify whether there may be any further risk to the public linked to this matter.

“We understand the public may be concerned and as always, I would ask them to remain vigilant and if they see or hear anything that concerns them, then to contact us.

“We are working closely with local officers in the areas where we have made arrests today and I’d like to thank police colleagues around the country for their ongoing support.”

Terror arrests in separate investigation

Police also arrested three further Iranian nationals in London on Saturday as part of another, unrelated counter terror investigation.

The suspects were detained under section 27 of the National Security Act 2023, which allows police to arrest those suspected of being “involved in foreign power threat activity”.

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Home secretary Yvette Cooper said in a statement: “I want to thank the police and our security services for the action they have taken to keep our country safe.

“Protecting national security is the first duty of government and our police and security services have our strong support in their vital work.”

She added: “These are serious events that demonstrate the ongoing requirement to adapt our response to national security threats.”

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Pro-crypto Democrats pull support for stablecoin bill in last minute

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Pro-crypto Democrats pull support for stablecoin bill in last minute

Pro-crypto Democrats pull support for stablecoin bill in last minute

A group of US Senate Democrats known for supporting the crypto industry have said they would oppose a Republican-led stablecoin bill if it moves forward in its current form.

The move threatens to stall legislation that could establish the first US regulatory framework for stablecoins, according to a May 3 report from Politico.

Per the report, nine Senate Democrats said in a joint statement that the bill “still has numerous issues that must be addressed.” They warned they would not support a procedural vote to advance the legislation unless changes are made.

Among the signatories were Senators Ruben Gallego, Mark Warner, Lisa Blunt Rochester and Andy Kim — all of whom had previously backed the bill when it passed through the Senate Banking Committee in March.

The bill, introduced by Senator Bill Hagerty, is formally known as the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act.

Related: Fed’s Powell reasserts support for stablecoin legislation

Senate prepares to vote on stablecoin bill

The Senate is expected to begin floor consideration of the bill in the coming days, with the first vote potentially taking place next week.

The bill has been championed by the crypto industry as a landmark step toward regulatory clarity. However, the Democrats’ about-face reflects growing unease within the party.

Although revisions were made to the bill after its committee approval to address Democratic concerns, the lawmakers said the changes fell short. They called for stronger safeguards related to Anti-Money Laundering, national security, foreign issuers, and accountability measures for noncompliant actors.

The statement was also signed by Senators Raphael Warnock, Catherine Cortez Masto, Ben Ray Luján, John Hickenlooper and Adam Schiff.

Pro-crypto Democrats pull support for stablecoin bill in last minute
A copy of the statement. Source: Alex Thorn

Senator Kirsten Gillibrand and Senator Angela Alsobrooks were absent from the list, who co-sponsored the bill alongside Hagerty.

Despite their objections, the Democratic senators emphasized their commitment to shaping responsible crypto regulation. They reportedly said they “are eager to continue working with our colleagues to address these issues.”

Related: US banks are ‘free to begin supporting Bitcoin’

Crypto needs a stablecoin bill

On April 27, Caitlin Long, founder and CEO of Custodia Bank, criticized the US Federal Reserve for quietly maintaining a key anti-crypto policy that favors big-bank-issued stablecoins, despite relaxing crypto partnership rules for banks.

Long explained that while the Fed recently rescinded four prior crypto guidelines, a Jan. 27, 2023, statement was left intact in coordination with the Biden administration.

The guidance, according to Long, blocks banks from engaging directly with crypto assets and prohibits them from issuing stablecoins on permissionless blockchains.

However, Long noted that once a federal stablecoin bill becomes law, it could override the Fed’s stance. “Congress should hurry up,” she urged.

Magazine: Financial nihilism in crypto is over — It’s time to dream big again

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UK

Pictured: Boy killed in Gateshead industrial estate fire – 14 children arrested on suspicion of manslaughter

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Pictured: Boy killed in Gateshead industrial estate fire - 14 children arrested on suspicion of manslaughter

Tributes have been paid to 14-year-old Layton Carr who died in a fire at an industrial estate.

Eleven boys and three girls, aged between 11 and 14 years, have been arrested on suspicion of manslaughter after the incident in Gateshead on Friday. They remain in police custody.

Drone view showing the aftermath of a fire at Fairfield industrial park at Bill Quay, Gateshead
Image:
Police were alerted to a fire at Fairfield industrial park in the Bill Quay area

Firefighters raced to Fairfield industrial park in the Bill Quay area shortly after 8pm, putting out the blaze a short time later.

Police then issued an appeal for a missing boy, Layton Carr, who was believed to be in the area at the time.

In a statement, the force said that “sadly, following searches, a body believed to be that of 14-year-old Layton Carr was located deceased inside the building”.

Layton’s next of kin have been informed and are being supported by specialist officers, police added.

Pic: North News and Pictures
Image:
Layton has been described as a ‘beautiful soul’

A fundraising page on GoFundMe has been set up to help Layton’s mother pay for funeral costs.

Organiser Stephanie Simpson said: “The last thing Georgia needs to stress trying to pay for a funeral for her Boy Any donations will help thank you.”

One tribute in a Facebook post read: “Can’t believe I’m writing this my nephew RIP Layton 💔 forever 14 you’ll be a massive miss, thinking of my sister and 2 beautiful nieces right now.”

Another added: “My boy ❤️ my baby cousin, my Layton. Nothing will ever come close to the pain I feel right now. Forever 14. I’ll miss you sausage.”

A third said: “Rest in peace big lad such a beautiful soul taken far to soon my thoughts are with you Gee stay strong girl hear for u always.”

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Compensation scheme scrapped for child sexual abuse victims

Detective Chief Inspector Louise Jenkins, of Northumbria Police, also said: “This is an extremely tragic incident where a boy has sadly lost his life.”

She added that the force’s “thoughts are with Layton’s family as they begin to attempt to process the loss of their loved one”.

They are working to establish “the full circumstances surrounding the incident” and officers will be in the area to “offer reassurance to the public”, she added.

A cordon remains in place at the site while police carry out enquiries.

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