Who will buy Paramount?

[themidnightlore]

If Sony bought Paramount so they will sell CBS, MTV, Paramount+ and Pluto TV.

@themidnightlore Judge based on news report, Sony is unlikely to be interest to buy Crackle because they don't want Paramount+ and Pluto TV.

Sony Wanted to Sell Off Pluto TV, CBS, MTV, & Paramount+ If It Bought Paramount | Cord Cutters News

Last week, Paramount and Skydance officially announced a deal to merge. Skydance will buy the Redstone family’s majority control of Paramount. Part of the deal gave the Redstone family 45 days to look for other buyers to beat the Skydance offer. One of the other potential buyers was Sony, which...

cordcuttersnews.com

Well, between Crackle and Pluto. the latter is infinitely better. I think?

 

[Moe]

Well, between Crackle and Pluto. the latter is infinitely better. I think?

I'm trying to understand about why Sony don't want non-anime streaming service?

Pluto TV is more advanced after Paramount improved and Crackle was OK when it was owned by Sony, so Chicken Soup for the Soul downgraded the service, so most of old Sony shows are gone.

I hopefully Sony continues to invest in broadcast and FAST.

 

[themidnightlore]

I'm trying to understand about why Sony don't want non-anime streaming service?

Pluto TV is more advanced after Paramount improved and Crackle was OK when it was owned by Sony, so Chicken Soup for the Soul downgraded the service, so most of old Sony shows are gone.

I hopefully Sony continues to invest in broadcast and FAST.

Well. The Sony One suite of FAST channels counts? They dropped them in a bunch of European countries.
Plus they own a bunch of FAST channels in the USA, one for GSN, the former Sony Canal - now Sony One FAST channels in Spanish and Sony KAL, or, like I like to call it, Sony Entertainment Television with the serial numbers flied off.

(Also, might be a great idea to go back in thread.)

 

[PF9]

I can't believe Sony wanted to break up Paramount Global. I would think they would want to own a conglomerate on a scale of the ones that own movie studios. Which is why I've proposed them acquiring Lionsgate, Starz, AMC Networks, and the non-news assets of Fox.

I also am surprised the new parent company won't retain the Skydance name. I expected it to do so so that the Paramount Pictures logo could have said "A Skydance Company", which would also apply to the production logos of other Paramount Global subsidiaries.

 

[Moe]

I can't believe Sony wanted to break up Paramount Global.

That why I warned to not overestimate the corporation because they could end up dump the assets that disappoint us.

I don't support the breakup of Paramount but concerned about corporation buys Paramount and start to sell one by one, so we wouldn't see Paramount as major studio anymore. Sony cannot be trusted and I'm skeptical of Skydance.

Nexstar made us disappointed about major changes with The CW. Remember about MGM used to be very big studio in the past, so not much now.

 

[lowell]

I can't believe Sony wanted to break up Paramount Global. I would think they would want to own a conglomerate on a scale of the ones that own movie studios. Which is why I've proposed them acquiring Lionsgate, Starz, AMC Networks, and the non-news assets of Fox.

I also am surprised the new parent company won't retain the Skydance name. I expected it to do so so that the Paramount Pictures logo could have said "A Skydance Company", which would also apply to the production logos of other Paramount Global subsidiaries.

So in every Bakish-less scenario, the company is not safe from any form of gutting at all:

"Another pillar of Skydance’s plans for Paramount is cost cutting. The company plans to consolidate some international operations, boosting profits partly by laying off employees. That won’t earn Mr. Ellison many fans among the company’s rank-and-file, though it could help him please shareholders."

Paramount Agrees to Merge With Skydance

The deal, approved by Paramount’s board, would usher in a new chapter for the company, which owns CBS and the movie studio behind “Top Gun.”

www.nytimes.com

The Co-CEO trio's original cost-cutting plan is basically a Skydance-lite restructuring over there, with the board having a positive reception to it:


"There is, however, another option. The newly-named “Office of the CEO” — composed of the three top executives Brian Robbins, George Cheeks and Chris McCarthy — who replaced ousted CEO Bob Bakish last week, are in the drivers seat right now.



They are a viable go-forward option for Paramount, and they have a plan.


According to four individuals who spoke to TheWrap, the executives met with the Paramount board last week and offered a detailed plan to address the most pressing problems and turn the listing company around over the next three years.



The plan boils down to reducing Paramount’s $14.6 billion debt through aggressive cost-cutting and raising cash by selling assets which would likely include, among other things:

• The Paramount lot for an estimated $2 billion, and then leasing it back for the studio’s use.
• BET and VH1 networks, estimated value $3 billion
• Pluto TV, which is run by Tom Ryan

The internal plan would also involve aggressively reducing head count. And the CEO triumvirate is looking at strategic options for streaming, which could include the sale of Pluto or “potential alternatives” for Paramount+ as one insider put it, with the goal of getting to profitability by the end of 2025.


The aim of the plan would be to relieve the crushing debt burden and get Paramount’s global debt upgraded from its current junk status, which continues to weigh down the stock price. Credit rating agency S&P Global recently downgraded Paramount’s debt to junk, one level below investment grade, based on “weak credit metrics.”


The other priority in the plan would be to restore payment of a dividend, which has endlessly aggravated Shari Redstone, the non-executive chairwoman of Paramount Global, president of National Amusements and the controlling shareholder of the studio. Bakish cut the divided by 75% in 2023 as a way of maintaining cash with the hope of driving up the stock.


The triumvirate’s plan met with a positive reception from the board, according to one insider. The three executives apparently get along well, and were seen at Paramount’s television upfronts in New York last week enthusiastically working the room of advertisers and talent together. Robbins has both solid digital and theatrical operating experience; Cheeks understands television and cable programming. Of the three, McCarthy is the strategic force — pushing for bottom line growth in Paramount+."

But overall, everything is still up in the air over there post-Bakish exit:


"While the options play out, insiders say one thing is clear: The saga of Paramount’s next phase is apparently not going to be resolved in the short term."

Paramount’s Options: Apollo-Sony or Skydance? The CEO Office Might Win Out | Analysis

The three-man office of the CEO offered a plan to sell the Paramount lot, slash headcount and maybe even sell Pluto TV.

www.thewrap.com

That why I warned to not overestimate the corporation because they could end up dump the assets that disappoint us.

I don't support the breakup of Paramount but concerned about corporation buys Paramount and start to sell one by one, so we wouldn't see Paramount as major studio anymore. Sony cannot be trusted and I'm skeptical of Skydance.

Nexstar made us disappointed about major changes with The CW. Remember about MGM used to be very big studio in the past, so not much now.

Skydance confirms beyond the trio's cost-cutting plan, there will be absolutely be even more gutting:

"Big cuts in linear: Shell will almost certainly gut the linear TV assets even further. “They are very profitable businesses that do need to be managed differently,” Ellison told me. “They need to be managed for cash flow.” That’s been happening for a while now, of course—the unscripted/game show boom in broadcast, the McCarthy Ridiculousness strategy of airing endless repeats on each cable network to supplement a signature franchise that kinda maybe justifies the channel’s existence. The risk, obviously, is that further content cuts will jeopardize carriage fees. Distributors are clearly coming into these negotiations with knives out. Paramount has a big negotiation with Dish coming up, for instance, and Charlie Ergen would probably love to drop channels like MTV and VH1 or extract major concessions. CBS has 16 scripted shows on its fall schedule. ABC has just five. It probably won’t take long for Shell to winnow that CBS number down, Dick Wolf be damned."

Money Wins Paramount

The billionaire scion talks next steps for the storied studio and his motivation to reinvent a dying company: “This is what I wanna do for the rest of my life.”

puck.news

And they're even not ruling out selling off CBS in the future:

"Cardinale says there will be close to $2 billion in cuts and some asset sales like BET, but not CBS, though the famed broadcast network will not be immune to the cost cuts, and I am told, the new owners are less protective of the network behind closed doors, refusing to totally rule out a sale sometime in the future."

How famed investor Mario Gabelli could wreak havoc on Paramount’s Skydance merger: ‘We want to see all the details’

Cardinale knows the new Paramount run by a new generation of media mogul in David Ellison in an era of AI and technological change, could be the test-case for the industry’s future.

nypost.com

If Skydance was really loaded with money, they wouldn't need to come out with this statement at all.

Sounds like some kind of mirage being sold on the exterior with a hammer being held waiting inside ready to smash the place open.

 

[harry580]

@Moe, what about 20th century fox?, its was a major studio but disney bought it and shuttered fox 2000 & blue sky studios and fire people like riley scott & peter chernin

 

[harry580]

sorry for double posting, but, sony is out of the race for paramount, they exited it the moment skydance announced they buying paramount

 

[Moe]

@Moe, what about 20th century fox?, its was a major studio but disney bought it and shuttered fox 2000 & blue sky studios and fire people like riley scott & peter chernin

Acquisition/merger eliminated the major studio status.

We went off topic because this thread is about who will buy Paramount, so go back on topic.

 

[lowell]

@Moe, what about 20th century fox?, its was a major studio but disney bought it and shuttered fox 2000 & blue sky studios and fire people like riley scott & peter chernin

Netflix got that major studio status by agreeing to pay the membership fee of $12 million annually to the MPA.

That brings the number up to 6 major studios. If Apple and Amazon each also agree to pay $12 million every year, that brings it up to 8.

The arrival of tech disruptors into Hollywood is going to change the entertainment business in the long-run.

Acquisition/merger eliminated the major studio status.

We went off topic because this thread is about who will buy Paramount, so go back on topic.

So back to the topic, the Rhode Island State Pension Fund is going to be taking the Redstones to court over their handling of Paramount Global:

"Redstone vs. retirees: Shari Redstone’s apparent decision today to sell National Amusements to David Ellison, giving his Skydance Media control of Paramount, adds intrigue to an under-the-radar yet high-stakes trial scheduled to open in a Delaware court on July 24. Rhode Island, whose state pension fund owns Paramount shares, has been pushing to pry open the entertainment giant’s ledger for texts and emails between Redstone and members of the board.

Rhode Island’s lawyers claim that Redstone might have played fast and loose with her fiduciary duties, dangling M&A opportunities to pad her personal fortunes at the expense of shareholders. Today’s news will certainly boost the state’s position, especially as it looks at other rejected offers for Paramount. In response to the bid for the company’s books and records, Paramount’s lawyers at Simpson Thacher counter that the company is entitled to some “business strategy immunity” to veil the details of their innermost conversations and protect potential transactions. They paint Rhode Island as a voyeur, claiming the state “seeks a live look into the boardroom during a reportedly active deal process, and that is impermissible and potentially harmful to Paramount.”

If the trial goes forward, it could offer a rare glimpse into the anatomy and legality of dealmaking almost as it is happening, given that a special board committee still needs to approve Redstone’s pact with Ellison. Plus, what unfolds in the courtroom could offer a peek at shareholder litigation to come and maybe even influence Paramount’s future course."

WIH+: Shari’s About-Face, A Curious TikTok Silence & MSNBC Under Fire

Welcome back to What I’m Hearing+, your extra Tuesday dose of Puck’s private email devoted to the entertainment industry. I’m still processing the news that Ben and J.Lo—sorry, Paramount and Skydance—are back on again, weeks after they called it splitsville despite a fully negotiated merger. ‌...

puck.news

 

[Elijah Abrams]

Netflix got that major studio status by agreeing to pay the membership fee of $12 million annually to the MPA.

Netflix does not count because they are considered a "horizontal production/distribution studio". You could even say they’re an "unofficial" major film studio.

 

[Moe]

Netflix does not count because they are considered a "horizontal production/distribution studio". You could even say they’re an "unofficial" major film studio.

That why I responded his post in profile message, however I respect his interpretation, tho.

 

[lowell]

Netflix does not count because they are considered a "horizontal production/distribution studio". You could even say they’re an "unofficial" major film studio.

Even if you can be for or against that, at the end of the day, it really all comes down to whoever pays for that status because they'll be represented by the MPA as a major film studio.

The way that Netflix served as a significant disruptor to traditional Hollywood in recent years is allowing them to squeeze themselves in to that level.

If Apple and Amazon decides to pay the membership fee as well, they'll also be acknowledged by the MPA as major studios as well.

Those who don't want to pay won't get to be declared the status of being a major studio.

That why I responded his post in profile message, however I respect his interpretation, tho.

The reason it does happen this way is because when it comes down to them needing the lobbying representation from the organizations, these studios have the MPA, the theaters have the NATO, and the streaming platforms have the SIA serving to represent them whenever and whereever necessary.

You pay the money for it, you get it.

 

[PF9]

Paramount Global is currently headquartered in NYC, while Skydance is based in Santa Monica, a suburb of LA. The combined company should retain Santa Monica as its primary HQ due to its proximity to the Paramount Studios, where the flagship subsidiary of Paramount Global is based, in Hollywood.

 

[kanc]

Edgar Bronfman Jr. Still Mulling Bid For Paramount Control During Skydance “Go-Shop” Period

Veteran media exec Edgar Bronfman Jr. is continuing to explore a bid for National Amusements Inc., Paramount Global's controlling shareholder.

deadline.com

 

[kanc]

Paramount Global Steels Itself For New Round Of Layoffs As Q2 Earnings Hit, End Of Skydance “Go-Shop” Period Nears

Paramount Global is planning a new round of layoffs, adding to an eventful month with quarterly earnings out Thursday and the Skydance deal in place.

deadline.com

More layoffs for Paramount... for quarter 2.

 

[harry580]

let me guess, nickelodeon will get the layoffs due to failing to try to capture the gen alpha demographic (im sarcastic I know)

 

[JMTV]

Paramount Global Steels Itself For New Round Of Layoffs As Q2 Earnings Hit, End Of Skydance “Go-Shop” Period Nears

Paramount Global is planning a new round of layoffs, adding to an eventful month with quarterly earnings out Thursday and the Skydance deal in place.

deadline.com

More layoffs for Paramount... for quarter 2.

Man, that really sucks..

 

[Checkerboard]

Seems all the big companies are broken.

 

[lowell]

Paramount Global Steels Itself For New Round Of Layoffs As Q2 Earnings Hit, End Of Skydance “Go-Shop” Period Nears

Paramount Global is planning a new round of layoffs, adding to an eventful month with quarterly earnings out Thursday and the Skydance deal in place.

deadline.com

More layoffs for Paramount... for quarter 2.

It'll be roughly 15% of its U.S workforce, amounting to 2,000 staffers:

"Paramount is also cutting about 2,000 jobs, or 15% of its U.S. workforce, as part of an effort to realize $500 million in cost savings."

https://www.wsj.com/business/media/paramount-global-para-q2-earnings-report-2024-357cd193