Paramount is playing the field as exclusivity goes out the window. After months of M&A talks, the deal between Paramount Global and Skydance Media may have fallen apart, but it doesn't mean time to roll the final credits. In fact, it may be the start of a new movie that now includes a new suitor in Sony and Apollo. Unfortunately, this may turn into a long epic that no one wants to see. Rom-com or drama, Paramount is in the middle of a battle that is at once intriguing yet a bore if this drags on. As the exclusivity window expired last Friday, Skydance felt jilted at the altar as Sony seemed to swoop in and clinch the deal. As of now, however, Paramount is opening negotiations with both Skydance and Sony to see which will blink first and give in to its demands. Whether Skydance decides to stick around after months of courting remains to be seen because there are other fish in the ocean. Don't break out the champagne yet for Sony. A potential merger between Sony and Paramount could hit the rocks because of regulatory issues since government rules limit foreign companies from owning broadcasting networks in the U.S. This could prevent Sony's Japanese parent company from taking full control of CBS, which is part of Paramount Global. One way around this would be to have Apollo, which is based in the U.S., to hold the rights to the CBS broadcast license. This would be one time where two's company would benefit from three's a crowd. Paramount isn't exactly smelling like a rose these days. The entertainment industry is facing a barrage of challenges including the decline of cable TV, and more significantly, for Paramount, a streaming business that is bleeding cash. That last point raises an important issue for marriage that doesn't see eye to eye. Paramount has a streaming service in Paramount+ that competes directly with Netflix with more than 70 million subscribers. That model differs considerably from Sony which sells TV shows to entertainment conglomerates like Netflix and Disney. Like dating that's gone past its expiration date, Paramount's potentially drawn out strategy for seeking a suitor will become a morale problem for its employees. It certainly won't be pleasant for shareholders and eventually customers who won't stick around if service, quality and content begin to suffer https://lnkd.in/emnzeS3f #paramount #entertainment #sony #skydance #streaming #television #merger
Antonio Shelly
10mo
Whats the ultimate goal here? Do customers benefit?
David Leveille
10mo
How does Tom Cruise's company going to Warner back in January affect this, if at all?
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Learning Scientist | Connection Centered IT Consulting
10moParamount's M&A saga sounds like a strategic thriller, balancing potential partners and regulatory hurdles. Keeping an eye on how this unfolds will be key for industry stakeholders.