AceShowbiz - Jeff Shell, the president of Paramount Skydance, has been dismissed, marking his second termination from a major media company in just three years.

This decision follows an internal probe related to a lawsuit filed against Shell by whistleblower and Las Vegas gambler R.J. Cipriani. Both Paramount and Shell have declined to provide any comments on the situation.

The lawsuit alleges that Shell failed to pay Cipriani for crisis communication services he claims to have rendered. Cipriani further accuses Shell of sharing confidential, non-public information, including specifics about Paramount's $7.7 billion UFC media rights agreement and its strategies to enhance its bid for Warner Bros. Discovery.

In response, Shell filed a countersuit accusing Cipriani of defamation and extortion. Cipriani expanded his legal action to include Paramount, its board of directors, and the Ellison family. Paramount has previously dismissed Cipriani’s claims as "frivolous" and stated its intention to vigorously defend itself.

Cipriani is pursuing at least $150 million in damages, while Shell seeks an unspecified amount for damages and losses attributed to Cipriani’s allegations. Shell is also requesting an injunction to prevent Cipriani from further defamatory statements.

Before joining Paramount Skydance, Shell was ousted from NBCUniversal in 2023 following sexual harassment allegations from former CNBC correspondent Hadley Gamble, with whom he admitted to having an "inappropriate relationship."

After leaving NBCUniversal, Shell worked with Gerry Cardinale’s RedBird Capital Partners, which played a key role in funding Skydance’s $8 billion acquisition of Paramount. RedBird is also supporting the $47 billion equity financing for Warner Bros., alongside the Ellison family. Shell officially joined the Paramount Skydance leadership following the merger announcement in July 2024.

The departure of Shell occurs as the Paramount-Warner Bros. merger is anticipated to close by the third quarter of this year, pending regulatory and shareholder approval. A shareholder vote is scheduled for April 23.

If the deal does not close by September 30, Warner Bros. Discovery shareholders will receive a 25 cent per share "ticking fee" each quarter until completion. Should the transaction fail due to regulatory reasons, Paramount will owe Warner Bros. Discovery a $7 billion termination fee.

This development follows ongoing legal battles involving Shell and Cipriani, highlighting the turbulent environment surrounding the media executive’s tenure at Paramount Skydance.