Recently, Paramount, the parent company of Nickelodeon and Paramount+, has been looking to sell some of its assets and make cuts to others. Now, according to a report from CNBC, Shari Redstone, president of National Amusements and controlling shareholder of Paramount Global, is open to a merger or selling the company if the price is right.
Important Note: Paramount Global at this time isn’t actively working with an investment bank on a sale, according to people familiar with the matter. The company is content to wait for a shift in market conditions or regulatory officials before getting more aggressive on a transformational deal, said the people.
Shari Redstone owns roughly 80% of Paramount Global voting stock and was reportedly the main force behind merging CBS and Viacom back in 2019. That merger resulted in the company we now know as Paramount.
Paramount holds a lot of assets that would attract many potential buyers. Its local affinities and the CBS network alone are highly attractive, especially for their NFL contract. However, the company has a lot more to offer, including Nickelodeon, Paramount+, MTV, Pluto TV, Comedy Central, Showtime, and more. This also includes popular shows and franchises like SpongeBob SquarePants, Star Trek, South Park, and more.
In recent years, most media companies, including Paramount, have been struggling with the growth of cord cutting. Paramount’s market capitalization has reportedly dropped to $7.7 billion as 2023 hit many media companies hard. That is the lowest level it has been at since the 2019 Viacom and CBS merger. That drop could make the company a target for a merger or a sale.
According to CNBC’s sources, any potential deal for Paramount would have to be at a good price or the Redstone family wouldn’t accept it. Exactly what that price is was not disclosed in the report.
Paramount has a lot going for it right now, with Paramount+ hitting 61 million subscribers, a number that other major streaming services could only dream of. It also has very lucrative sports deals, including the NFL, March Madness, and a new deal with the Big Ten that will see more college football and basketball games on CBS. This could help Paramount outlast any further drop in the market, but it also makes it very attractive to potential buyers.
Some outsiders have said they believe Paramount is too small in the long run, though, to compete with Disney, Warner Bros. Discovery, NBCUniversal, and a growing number of streaming companies like Amazon along with Apple. Even with its large catalog of shows and networks Paramount is facing massive companies like Disney and the newly merged Warner Bros. Discovery.
For years we have heard predictions that there would be consolidation in the market because of cord cutting. Disney’s deal to buy 21st Century Fox was likely only the start of what could be a number of big mergers. We also saw Discovery and Warner Media merge recently. Now, there are rumors that Warner Bros. Discovery and even NBCUniversal could be interested in buying up some or all of their competitors. Could that mean they are looking at Paramount? For now, we will have to wait and see.
Stream a Mountain of Entertainment, including your Nickelodeon favorites on Paramount+! Try it FREE at ParamountPlus.com!
Originally published: October 23, 2023.
Original source: Cord Cutters News; H/T: Special thanks to @916786wc for the news!
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