New Suitor Emerges for Paramount Global

A new potential buyer has emerged for Paramount Global, the media conglomerate owned by Shari Redstone. According to CNBC’s David Faber, media mogul Barry Diller is considering acquiring National Amusements Inc., the company that controls Paramount.

Background

National Amusements Inc. is the controlling shareholder of Paramount, and Shari Redstone owns the company. In recent weeks, National Amusements stopped talks with Skydance on a proposed merger with Paramount. The proposed deal would have seen Redstone receive $2 billion for National Amusements, with Skydance buying out nearly 50% of class B Paramount shares at $15 apiece, or $4.5 billion.

IAC’s Potential Bid

IAC, an internet media and publishing company, has signed a nondisclosure agreement and is looking into the data room of National Amusements. IAC could make a decision in the near term to place a bid on National Amusements, which would give it a controlling stake in Paramount. The terms of IAC’s potential bid are unknown, but it would likely have to be more than $2 billion.

Barry Diller’s Background

Barry Diller is the chairman of IAC and Expedia. He has a long track record in the media industry, including serving as chairman and CEO of Paramount Pictures in the 1970s and 1980s. He followed Paramount with his post at the head of 20th Century Fox, where he greenlit Fox network programs including "The Simpsons."

Diller’s Views on Legacy Media

Diller has been vocal about the need for legacy media companies such as Paramount to give up on chasing Netflix in the streaming wars and focus on their broadcast and pay-TV networks. During the Hollywood strikes last summer, he said that despite cord cutting, traditional pay-TV is still profitable — unlike most streaming businesses. He called on legacy media to build up traditional networks again.

IAC’s Interest in Paramount

IAC’s interest in Paramount is not new. Diller tried to acquire Paramount Pictures in the 1990s, but went toe-to-toe with Sumner Redstone, the father of Shari Redstone, who now controls the company. Since then, Paramount has changed and grown in various ways. The company now comprises the movie studio, as well as the CBS broadcast network, a portfolio of cable TV networks such as MTV and BET, and streaming services Paramount+ and Pluto.

Paramount’s Restructuring Efforts

Paramount has been focused on restructuring its business. The company has concentrated on exploring streaming joint venture opportunities with other media companies, slashing $500 million in costs, and divesting noncore assets. Paramount is now led by the so-called Office of the CEO — CBS CEO George Cheeks, Paramount Media Networks CEO Chris McCarthy, and Paramount Pictures CEO Brian Robbins.

Conclusion

The emergence of a new suitor for Paramount Global is a significant development in the media industry. With IAC’s potential bid, the company could gain a controlling stake in Paramount, giving it a significant presence in the media landscape. As the media landscape continues to evolve, it will be interesting to see how Paramount and other legacy media companies adapt to the changing landscape.

FAQs

Q: Who is Barry Diller?
A: Barry Diller is the chairman of IAC and Expedia. He has a long track record in the media industry, including serving as chairman and CEO of Paramount Pictures in the 1970s and 1980s.

Q: What is IAC’s potential bid for National Amusements Inc.?
A: IAC’s potential bid is unknown, but it would likely have to be more than $2 billion.

Q: Why is Diller interested in acquiring Paramount?
A: Diller has been vocal about the need for legacy media companies such as Paramount to give up on chasing Netflix in the streaming wars and focus on their broadcast and pay-TV networks.

Q: What is Paramount’s current situation?
A: Paramount is currently focused on restructuring its business, exploring streaming joint venture opportunities, slashing costs, and divesting noncore assets.

Q: Who controls Paramount?
A: Shari Redstone owns National Amusements Inc., the controlling shareholder of Paramount.

Q: What is the proposed merger between Skydance and Paramount?
A: The proposed merger would have seen Redstone receive $2 billion for National Amusements, with Skydance buying out nearly 50% of class B Paramount shares at $15 apiece, or $4.5 billion.

Author: www.cnbc.com

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