In recent developments, Warner Bros. Discovery and Skydance Media have shown interest in purchasing a major share of Paramount.
According to a New York Post report, Shari Redstone, who holds the majority ownership of Paramount, is planning to auction off her controlling share to whoever makes the highest offer.
Paramount Global: Auction for Control Begins
Shari Redstone, the key figure behind National Amusements, which holds sway over the media giant Paramount Global, has initiated a formal auction process. This move was reported by The Post, revealing Redstone's strategy to sell the company.
The financial advisors for Redstone, 69, the daughter of the late media mogul Sumner Redstone, have started sharing confidential agreements with private equity firms. This step allows these firms to examine the financial details of National Amusements, broadening the scope for potential buyers.
Among these, Warner Bros. Discovery has been identified as a prospective bidder, per sources familiar with the matter.
Redstone aims to sell National Amusements at a significantly higher price than its current market value, targeting an increase of up to 50%. National Amusements holds a 10% stake in Paramount Global and commands 77% of its voting rights.
A source close to Redstone mentioned that while the preference might be to sell the entire company, including Paramount Global, such a deal has not yet materialized, and there may not be a bid for the complete entity.
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Paramount Sale Talks: Early Stages, Multiple Bidders
Negotiations for the sale of Paramount are still in their initial phases, involving discussions with Warner Bros. Discovery and Skydance. The New York Post reports that these discussions might become more complex as several investment firms show interest in the deal.
This development follows the recent meeting between Bob Bakish, CEO of Paramount Global, and David Zaslav, CEO of Warner Bros. Discovery, where they discussed a potential merger.
The talks with Warner Bros. Discovery and Skydance are at a delicate stage and could break down, particularly as the entry of investment firms might increase Paramount's valuation. While the date for the auction has not been set, bankers have begun circulating Paramount's details to interested parties.
The acquisition of National Amusements, the parent company of Paramount, would hand over control of several cable TV networks, including popular channels like Nickelodeon, Comedy Central, and MTV, as well as numerous movie theaters, to the new owner.
This news emerges in a challenging time for the entertainment industry, marked by declining cable TV viewership and financial struggles for many streaming services. Paramount's streaming platform, Paramount+, strives to remain competitive in this tough market.
About Paramount
Paramount is a global content powerhouse, delivering a wide array of premium material to audiences through various platforms. The company reaches billions worldwide with its diverse portfolio, including studio productions, networks, streaming services, live events, and merchandise.
Paramount's studios are renowned for producing content that spans all genres and formats, catering to a wide range of audiences. Its networks and brands have established deep connections with some of the most diverse audiences worldwide.
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