NEWS OF THE DAY! Paramount's Potential Breakup: Sony and Apollo's $26 Billion Bid Sparks Regulatory Rumble 1.Paramount Global, a big entertainment company, might get split up if Sony Pictures Entertainment and Apollo Global Management buy it as per a report. 2.The plan involves selling CBS broadcast network, Paramount's cable channels, and its streaming service, Paramount+. 3.Paramount Pictures would join Sony's movie studio, while Sony and Apollo would keep Paramount's TV shows, movies, and intellectual property. 4.Sony and Apollo haven't discussed this plan with Paramount yet. 5.Shari Redstone, who owns Paramount, might not like the idea, but it's not a deal-breaker. 6.Splitting up Paramount could make it easier for the deal to pass regulations, especially because U.S. laws might not allow Sony to own a broadcast network entirely. 7.Paramount is also thinking about sharing its financial details with Sony and Apollo, which could help with their $26 billion buyout offer. =>Please follow Finplate and stay updated with the latest #mergersandacquisitions news. Thanks in advance. To read the news in detail, click below: https://lnkd.in/g_2mH8Pe To familiarize yourself with the context of this news, kindly click on the following link. https://lnkd.in/gqrBwDR9
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These are the promises Paramount laid out on that Skydance investor call by David Ellison (Skydance CEO) and his crew: * Paramount’s weak credit rating will return to “investment-grade status” by 2026 * $2 bn in cost savings * Improve Paramount+, which has 71M subs and is losing money They will do this by: * Keep people on the platform longer by investing in “algorithmic recommendation engines.” * Make Paramount filmmaker-friendly and “creatively execute at the highest level” * Stop the cash flow bleeding and break even by being “a little bit smarter about licensing” instead of throwing content onto Paramount+ Ellison stated: “We need to transition New Paramount to a world-class media and technology enterprise… The first thing we need to do is to double down on the core competency of storytelling across mediums.” The medium that makes up more than 50% of Paramount’s revenue is not their studio or streaming service but Linear TV. Attached is a deeper look at the future plans of Paramount. https://lnkd.in/g6jFAg82
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From Reuters: Sony Pictures Entertainment and Apollo Global Management, Inc. are discussing making a joint bid for Paramount Global, according to a person familiar with the matter. The companies have yet to approach Paramount, which is in exclusive deal talks with Skydance Media, an independent studio led by David Ellison, though some investors have urged Paramount to explore other options. The competing bid, which is still being structured, would offer cash for all outstanding Paramount shares and take the company private, the source said. Sony would hold a majority stake in the joint venture and operate the media company, and its library of films, including such classics as "Star Trek," "Mission:Impossible" and "Indiana Jones," and #television characters like SpongeBob SquarePants, according to the source.[...] Apollo would likely assume control of the CBS #broadcast network and its local television stations, because of restrictions on foreign ownership of broadcast stations, the source said.[...] Skydance is negotiating separately to acquire National Amusements, a company that holds the Redstone family's controlling interest in Paramount, according to a person familiar with the deal terms. That transaction is contingent upon a Skydance-Paramount #merger. #mergersandacqusitions #ownership #TV #TVproduction
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In a town known for storylines, Paramount's sale didn't disappoint. The media giant, which owns Paramount Pictures and CBS, has been in the news as an acquisition target since late last year. And just like its movies and television shows, Paramount's sale included twists, turns, and a slew of characters. But the final scene is here, it seems, as Skydance and Paramount have agreed to terms valuing the media giant at $8 billion. So with a deal wrapping up, what comes next for Paramount, and the wider streaming industry? I spoke to Peter Kafka to get some of his takeaways. More on Business Insider #media #paramount #streaming #hollywood #movies #television
With Paramount's long and winding sales process coming to an end, here's what comes next for the media giant
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Paramount's shutting down Paramount Television Studios after 11 years, with 20-30 employees now updating their resumes. This move is part of Paramount Global's bigger cost-cutting mission—they're slashing 15% of their U.S. workforce to save about $500M. All PTVS projects will be absorbed by CBS Studios, consolidating their TV production under one roof. Meanwhile, Paramount+ is riding its own rollercoaster. It lost 2.8M subscribers in Q2, mostly due to exiting a South Korean deal and post-Super Bowl churn. But plot twist—they still managed to turn their first-ever streaming profit of $26M. As Paramount preps for its Skydance Media merger, they're clearly trying to streamline and adapt.
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An interesting piece on the current battle for #Paramount. The best option for whoever takes over Paramount is to follow the #Sony strategy and become the "arms dealer" who monetises its content to the max, whether by selling to the highest bidder and / or monetising in ways such as premium short-form video. The idea Paramount can compete effectively with the other major streaming services is an illusion, not least because it does not have the balance sheet / cash resources. One other point which this piece touches on indirectly The Wall Street consensus is overestimating #Netflix's strengths given (1) its cash flow generation is minor compared with its peers; (2) it does not have an historical bank of content and (3) the ending of regular disclosure on subscriber numbers points to growing issues. As usual, this is not investment advice. Christopher Grimes Anna Nicolaou
Paramount: the takeover battle that could reshape Hollywood
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🎬💥 Is Paramount's Future in Pieces? Sony and Apollo's Bold Move Unveiled! The potential breakup of Paramount Global by Sony and Apollo is shaking up the entertainment industry. With plans to auction off CBS, MTV, Nickelodeon, and Paramount Plus while keeping Paramount Pictures, this move signals a shift in how conglomerates operate in the digital age and could reshape the media landscape. 📺 But amid the excitement, regulatory hurdles loom large. From foreign ownership restrictions to potential antitrust scrutiny, navigating the path to acquisition won't be easy. Yet, Sony and Apollo remain optimistic, foreseeing a multitude of interested buyers for Paramount's assets. 🚀 What do you think about this game-changing strategy? How might it impact the future of entertainment? 💡🔄 #EntertainmentIndustry #Media #Paramount #Sony #ApolloGlobal #CBS #MTV #Nickelodeon #ParamountPlus #Streaming #Acquisition #FutureofMedia #IndustryDisruption #Antitrust #Regulatory
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#Sony and #Apollo through their hats in the ring, taking on Skydance's Paramount takeover. 1. Skydance Media’s All-Cash Bid: 💰 Skydance Media, backed by RedBird Capital Partners and KKR, is seriously considering an all-cash bid for Paramount Global. Their offer brings an interesting dynamic to the table. However, the controlling shareholder, Shari Redstone, seems to lean toward a deal with David Ellison’s Skydance. The situation remains fluid as the special committee evaluates competing proposals. 2. Regulatory Challenges: 📃 Paramount’s potential deal with Sony faces regulatory hurdles. Foreign ownership restrictions on broadcast networks could impact Sony’s ability to fully own CBS. The bidding group, including Apollo, may need to find a creative solution to navigate these regulations and secure the CBS broadcast license. 3. Industry Trends and Transformation: 📈 Paramount’s exploration of a deal comes at a critical time. Cable TV viewership is declining, and streaming services are reshaping the entertainment landscape. Paramount’s unprofitable streaming business adds urgency to finding the right partner or buyer. Whoever wins the bid will need to strategically address these industry shifts. The Paramount bid is a high-stakes game with strategic maneuvering, regulatory complexities, and adaptation to changing market dynamics. Stay tuned for further developments! Feel free to share your thoughts or insights in the comments below. 🚀📺 #ParamountBid #MediaIndustry #BusinessStrategy
Sony and Apollo in Talks to Acquire Paramount
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What's New to TheStreet... 📉 Paramount Global Takes a $6 Billion Hit 📉 In a significant move, Paramount Global has written down the value of its cable-TV networks by nearly $6 billion, just a day after Warner Bros. Discovery faced a $9.1 billion impairment charge. 🎬📺 What do you think this means for the future of cable TV? Share below!👇🏻 👉🏻Follow New To The Street for more! #paramountglobal #cabletv #media #entertainment #industrytrends #impairmentcharge #businessupdate #businessnews #business #news #newtothestreet
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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
Sony and Apollo in Talks to Acquire Paramount
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What's New to TheStreet... 📉 Paramount Global Takes a $6 Billion Hit 📉 In a significant move, Paramount Global has written down the value of its cable-TV networks by nearly $6 billion, just a day after Warner Bros. Discovery faced a $9.1 billion impairment charge. 🎬📺 What do you think this means for the future of cable TV? Share below!👇🏻 👉🏻Follow New To The Street for more! #paramountglobal #cabletv #media #entertainment #industrytrends #impairmentcharge #businessupdate #businessnews #business #news #newtothestreet
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