"New Paramount" May Be Looking To Discard Cable Networks Like MTV, Comedy Central, BET And Nickelodeon

The landscape of television is undergoing a seismic shift, with streaming services increasingly dominating the entertainment industry. This transformation is forcing media conglomerates to re-evaluate their strategies, and for Paramount, this means a potential downplaying, or even outright disposal, of once-iconic cable networks like MTV and Comedy Central.

According to a recent report from The Hollywood Reporter, these networks, along with Nickelodeon and BET, are “simply not as high a priority” for the incoming Skydance regime following the anticipated merger with Paramount. This news raises serious questions about the future of these channels, which have played a significant role in shaping pop culture over the past few decades.

The report suggests that CBS is the only television asset considered completely safe under the new leadership. Incoming company president Jeff Shell has previously referred to CBS as a “crown jewel,” indicating its central importance to the merged entity. This prioritization of CBS comes at the expense of other networks within the Paramount portfolio.

The signs of this shift have been evident for some time. Paramount has reportedly entertained numerous bids for BET, including offers from prominent figures like Tyler Perry and media mogul Byron Allen. This willingness to consider selling BET demonstrates a clear shift in priorities away from these formerly key cable assets.

Perhaps the most alarming indicator of this deprioritization was the recent wiping of digital archives for networks like MTV News and Comedy Central. This erasure of digital history suggests a lack of commitment to preserving the legacy of these channels, further fueling speculation about their future.

The current strategy of bringing established sitcoms like “Friends” and “The Big Bang Theory” to MTV raises further questions. This move suggests a reliance on established, syndicated content rather than investment in original programming, potentially signaling a decline in the network’s focus on creating new, cutting-edge content. This is a far cry from MTV’s earlier days as a trendsetting music and youth culture channel.

The Hollywood Reporter cites a December 19 Bank of America research report from Jessica Reif Ehrlich, which predicts a trend of media companies divesting their cable TV network assets. The report suggests these assets would be “better positioned as a consolidated, linear-focused vehicle with scale benefits that can drive affiliate and advertising negotiation as well as synergies.” This analysis points towards a potential consolidation of remaining cable networks as a way to maintain some level of competitiveness against the streaming giants.

The potential decline of MTV and Comedy Central raises broader questions about the future of cable television as a whole. As streaming continues to gain momentum, traditional cable networks are facing an existential crisis. The convenience and on-demand nature of streaming have proven highly attractive to viewers, leading to widespread cord-cutting.

Whether these legacy networks can survive independently or face extinction remains to be seen. However, the winds are clearly blowing in the direction of streaming, and media conglomerates are adapting accordingly. The anticipated Skydance and Paramount merger is likely to accelerate this trend, potentially marking the beginning of the end for some of television’s most iconic cable brands. The focus on “synergies,” as mentioned in the Bank of America report, suggests that any remaining cable assets may be bundled together or sold off as a single entity, further diminishing their individual prominence in the media landscape.

SURPRISE!!! Paramount Africa Is Making Nickelodeon And Nick Jr. Available To DStv Compact Customers In South Africa

 

Get ready for a playful and fun festive season filled with joy, laughter, and one last 25th anniversary hurrah from SpongeBob SquarePants! From 6 December 2024, Nickelodeon (DStv 305) and Nick Jr. (DStv 307) will both be available on DStv Compact permanently, gifting more children and families across South Africa access to the very best in family entertainment.

 

As part of this exciting move, Nickelodeon, the number one entertainment brand for kids, invites everyone to celebrate SpongeBob SquarePants’ 25th anniversary with a festive extravaganza like no other. From exclusive new episodes and Nickelodeon favourites in isiZulu and Afrikaans to Zee Nxumalo’s Amapiano remix of the SpongeBob SquarePants theme-song! This holiday season promises something for everyone.

Nickelodeon (DStv channel 305) December Highlights

SpongeBob SquarePants Christmas Special – 21 December | Saturday at 12:30

The Loud House Christmas Special – 21 December | Saturday at 14:10

Young Dylan Christmas Special – 21 December |

Saturday at 18:30

The Patrick Star Show from 2–13 December at 15:00

Tales of the Teenage Mutant Ninja Turtles from 23 December, weekdays at 19:45 

Nick Jr. (DStv channel 307) December Highlights

Rubble & Crew (new episodes) from 02 December, Monday-Friday at 17:30

DORA (new episodes) from 09 December, Monday-Friday at 18:00

Nick Jr’s Holiday Stunt Premiere episodes: Paw Patrol, Rubble and Crew, Hamsters of Hamsterdale, The Adventures of Paddington, The Tiny Chef Show from 21 December at 12:00

Nick in Your Language Continues to Shine

Nickelodeon’s commitment to inclusivity continues with the Nick in Your Language initiative, offering local language episodes of beloved shows like SpongeBob SquarePants, DORA, Rubble & Crew, Tales of the Teenage Mutant Ninja Turtles, and PAW Patrol in local languages. Catch these dubbed favourites on Nicktoons (DStv channel 308), weekday mornings at 7:30–9:00, and afternoons at 15:00–16:00. 

January 2025: Start the New Year with Nickelodeon and Nick Jr.!

  

Transformers: EarthSpark S3 (new season) on 11 January at 11:00 on Nickelodeon (DStv channel 305), Baby Shark’s Big Movie! 5 January at 12:20 on Nick Jr. (DStv channel 307), Baby Shark’s Big Show S3 (new season), weekdays at 16:30 on Nick Jr. (DStv channel 307), starts 6 January. 

Dance in to the holidays with SpongeBob and Zee Nxumalo

To make this holiday season even more exciting, Nickelodeon has partnered with Amapiano sensation Zee Nxumalo for a special Amapiano remix of the SpongeBob SquarePants theme song, soon to be available on Spotify. Fans can join the #DanceLikeASpongeChallenge on TikTok and be part of the fun.

Follow @Nickelodeon_Africa for more information.

“At Nickelodeon we put kids first and we believe in the power of fun to bring families together. What better time to celebrate fun than during the holidays? As we mark SpongeBob SquarePants’ 25th anniversary, we’re thrilled that Nickelodeon and Nick Jr. content is now accessible to even more families, solidifying our mission to provide inclusive, world-class entertainment.” says Monde Twala, Senior Vice President and General Manager at Paramount Africa.

 

“We’re thrilled to make Nickelodeon and Nick Jr. available to DStv Compact viewers,” says Melusi Sibisi; Acting Head of 3rd Party Channels and Partnerships for the Multichoice Group. “This move underscores our commitment to ensuring that more families across South Africa have access to premium kids’ entertainment. With Nickelodeon’s rich line-up and beloved characters, this holiday season will undoubtedly be one to remember.”

 

This holiday season, Nickelodeon promises a Nicktastic Festive! Soak up the fun! Join SpongeBob, Patrick, the Ninja Turtles, and more as they bring endless joy and adventure to your screens.

Paramount Global Plans To Wind Down On TV Channels, Looking To Merge CBS And MTV Studios

David Ellison plans sweeping changes at Paramount Global, including cuts at the company's TV networks, billions of dollars more for streaming and an overhaul of top management, according to people familiar with his plans.

David Ellison who will take over as chief executive officer of Paramount when it merges withhis Skydance Media next year, is exploring combining all of Paramount's TV networks, including CBS and MTV, into one unit.

Those businesses are mostly run by two of the company's co-CEOs, Chris McCarthy and George Cheeks. While Cheeks is expected to stay, McCarthy's future is less certain.

The company’s third co-CEO, Brian Robbins, who leads the Paramount Pictures film studio and the Nickelodeon kids channel, is expected to leave around the close of the deal, said the people, who asked to not be identified discussing plans that are still being formed.

A movie fanatic who has co-financed most of Paramount's biggest films of the last decade, David Ellison was initially interested in the company's namesake movie studio.

While David Ellison and Robbins have worked together on several titles, they are said to have both conceded it's unlikely Robbins will stick around. No final decision has been made, however.

David Ellison has discussed putting Dana Goldberg, the head of production at Skydance, in charge of the film business, at least for the time being. Spokespeople for Paramount and Skydance declined to comment.

Since agreeing to merge Skydance with Paramount in July, Ellison and his deputies have been meeting with their future employees, seeking opinions about what is working and what isn't. David Ellison told employees at Paramount that he hasn't made any decisions about personnel.

David Ellison agreed to the deal knowing Paramount would require a major overhaul.

The company still makes almost all its profit from pay-TV networks such as Nickelodeon, MTV (DStv 130) and Comedy Central (DStv 122) that defined an era in pop culture. 

But those networks have hemorrhaged viewers and advertisers to technology companies such as Netflix and YouTube. The company's namesake film studio isn't expected to show a profit for 2024, according to analystss estimates.

"The business needs to be transitioned," David Ellison told Bloomberg shortly after the deal was announced.

When Donald Trump won the presidential election, David Ellison and the team at Skydance began preparing to take over Paramount even sooner than they once thought. They now believe the deal could close as soon as the end of March or early April.

The Federal Communications Commission, which approves the transfer of broadcast licenses, still must bless the deal. Petitions from those opposing the transaction are due 16 December, according to the commission. Final responses from the parties are due 13January 2025.

Two areas requiring David Ellison's immediate attention are TV networks and streaming.

David Ellison is looking at potentially cutting hundreds of millions of dollars in costs by folding the company's TV networks into one group, consolidating teams across departments like programming and marketing. The amount of original programming produced for the cable networks will decline, as will the staffing.

David Ellison will combine two groups, one that currently reports into McCarthy and another into Cheeks. While McCarthy was a favored son of former CEO Bob Bakish, Cheeks has a good relationship with Jeff Shell, who will serve as Ellison's number 2 at Paramount. Cheeks and Shell worked together at NBCUniversal.

David Ellison stated plans to streamline the company's operations in an investor presentation earlier this year, without getting into specifics.

Paramount will also explore strategic partnerships involving pay-TV networks that could result in a divestiture of some of those businesses. 

While David Ellison may not formally explore the sale of any of these networks, as was done under the previous regime, he is open to selling almost any network in the portfolio other than CBS.

David Ellison plans to cut back on the company's real estate holdings and will look to sell facilities like the CBS Broadcast Center, a production facility used for 60 Minutes and Last Week Tonight with John Oliver. CBS also owns the Ed Sullivan Theater, the home of Stephen Colbert's late-night show.

"We're not going to sell Paramount, we're not going to sell CBS, but we're looking to maximize value," David Ellison previously told Bloomberg.

The transaction has already led to negotiations between David Ellison, Paramount and the NFL.

The league is able to opt out of its broadcasting agreement with CBS as part of a provision in its contract. While the NFL doesn't plan to do so, it has talked to Ellison about turning some of its stake in a joint venture with Skydance into an equity stake in Paramount.

It has also discussed selling some or all of the NFL Network to Paramount.

The cuts in TV will help pay for a greater investment in streaming.

Paramount+ has grown to 72 million customers and has made money two quarters in a row. Yet it ranks last in viewership among mass-market services and is still much smaller than competitors such as Netflix, The Walt Disney Company and Amazon. 

Cindy Holland, who's serving as an adviser to Skydance, is consulting on the streaming strategy and is seen by many at Paramount as the person likely to take over that business.

David Ellison is particularly concerned with the poor user experience in the app and has talked about making it easier for viewers to find shows to watch by improving the recommendation algorithm.

David Ellison, the son of Oracle Corp. co-founder Larry Ellison, grew up around technology luminaries such as Apple Inc. co-founder Steve Jobs. He speaks often about marrying technology and art at Paramount, and more quotidian changes like improving Paramount's use of enterprise software.

David Ellison will also more closely integrate Pluto, a free streaming service, into Paramount+.

A free service like Pluto can serve as an on-ramp for viewers to use Paramount+ more often while also benefiting from the marketing around Paramount+ programmes. 

Paramount+ is one of three services, alongside Peacock and Max, that are seen as too small to survive independently.

Paramount's current leaders have talked to both Peacock and Max about strategic partnerships to leverage their shared resources. The company has also spoken to Amazon and foreign streaming services.

While Paramount will continue to pursue those deals, Ellison sees less urgency to do so. He believes the company has a solid foundation upon which it can build.

Paramount is much smaller than most of its competitors, even those struggling like Warner Bros. Discovery.

But, after this transaction, it will have a healthier balance sheet. And, unlike most of these other companies, it will have access to the bank account of the Ellison family. While David oversees Paramount day-to-day, his father - one of the world's richest men - financed much of the transaction.

This article was originally published by Bloomberg

Comedy Central Will Stop Airing In Ukraine By 1st January 2025 Due To Low Ratings

After shutting down in Russia in 2022, Comedy Central was made available through the Ukrainian media group 1+1 replacing Paramount Comedy. The channel is aimed at viewers aged 18-49 and reaches around 300 million households in more than 150 countries with shows like Two And Half Men, Modern Family and The Big Bang Theory.

Commenting on its launch in Ukraine, Oksana Petryshyn, general producer of the TET TV channel and Comedy Central, said: “The content of the Comedy Central TV channel has been proven over the years and has made Ukrainians fall in love with it. Therefore, the launch of the TV channel is a response to the request of viewers who, more than ever, need positive and life-affirming content”.

Now the channel is said to be going dark in the region by January 1st 2025 with sources siting poor reception which has led to its downfall. This was one of the few services to have been offered by Paramount Global following Russia's invasion into the Ukrainian market by 2022.

Although Comedy Central would cease to exist in the Ukraine, the channel is still available in Latin America, United Kingdom, Southeast Asia, India, Middle East and Africa.

Paramount Global which serves as the parent company for Comedy Central is in the process of being acquired by Skydance Media which is awaiting approval with the deal set to be finalised in the first half of 2025. The company is looking to form "New Paramount" which ventures into revenue streams while winding down on costs.

NFL Is In Talks To Acquire Some Of Skydance's Assets Ahead Of Merger With Paramount Global

The National Football League is in talks with David Ellison’s Skydance Media and one of his major investors, RedBird Capital Partners, that could result in some of the league’s media assets changing hands, according to people familiar with the conversations.

The talks could include a sale of NFL Media and its NFL Network cable channel, or an acquisition by Paramount Global of the league’s interest in Skydance Sports, a joint venture that produces movies and TV shows, according to the people, who asked to not be identified because the discussions are private.

Paramount, which holds rights to broadcast NFL games, is in the process of merging with Skydance, an independent film and TV studio, in a deal expected to close next year. Paramount’s contract with the league includes a change of control provision that could allow the NFL to seek another media partner, the people said. The NFL’s deal with Paramount’s CBS network is worth about $2.1 billion a year through 2033.

Although it is unlikely that the NFL will seek to replace CBS as its broadcast partner, the provision has prompted a wider conversation about business opportunities between the league, Skydance and RedBird. The league is already in business with both parties and Commissioner Roger Goodell has praised Skydance in interviews.

In 2022, the NFL invested $45 million in Skydance Sports in a deal that valued the entity at about $100 million. Skydance and NFL Films produced a new season of HBO’s Hard Knocks documentary series, focusing on the New York Giants, this year. The two companies are also working on a 10-part documentary series on Dallas Cowboys owner Jerry Jones.

The league and RedBird are partners in EverPass Media, which distributes the NFL Sunday Ticket games to bars and restaurants. RedBird is also an owner of the United Football League, which plays in the spring season. Larry Ellison, the father of the Skydance founder and one of the world’s richest men, has previously expressed interest in owning a professional football team.

The NFL has been shopping its media assets for a few years. NFL Media includes the league’s digital operations, the NFL cable network, the film unit and NFL RedZone, a subscription service. Walt Disney Co.’s ESPN sports division had been in talks about a potential deal that could have seen the company acquire NFL Media, giving the league a stake in ESPN in return. Those talks have stalled, however.

Paramount Television Studios Is Closing Down As Part Of Cost Cutting Procedure With Content Set To Merge With CBS Studios

PTVS’ shutdown will result in the exit of 20-30 employees. All current PTVS series and development projects will be folded into CBS Studios.

“To be clear, this is not a decision based on how PTVS performed. This move is the result of significant changes in the TV and streaming marketplace and the need to streamline our company,” Cheeks said. “Under Nicole’s leadership, this studio consistently punched above its weight in attracting top storytellers and stars to create best-in-class series. I want to thank every PTVS employee for shepherding a slate of shows that helped usher Paramount into the streaming era.”

Headed into the current wave of layoffs that will impact 15% of Paramount Global’s U.S. workforce over the next few months for $500M in savings, there had been chatter about Paramount TV Studios as a potential casualty following a string of downsizing/consolidation moves since CBS Studios and Paramount TV Studios were put together under Cheeks’ purview in the fall of 2022.

Both Cheeks and Clemens tried to assuage fears at the time by assuring PTVS staff that the division would remain independent from the larger CBS Studios as the two combined support operations by centralizing finance, law, production and casting. The same year, Paramount TV Studios absorbed Paramount+’s scripted originals team. (Word is more P+ layoffs may be coming after Labor Day.)

In the most recent round of layoffs in February, PTVS consolidated development and current under Head of Development Jana Helman, with a slew of senior programming executives leaving. It also dissolved/downsized communications, marketing and post-production which are now handled by CBS Studios. Prior to that, Clemens, a well-liked veteran executive, revealed that the studio was no longer going to produce limited series except for third-party buyers.

Also possibly factoring into the decision to shut down PTVS is Paramount Global’s pending merger with Skydance whose television division is very similar in scope and output to PTVS. The two companies have collaborated on such series as Reacher, Tom Clancy’s Jack Ryan and the upcoming Cross.

Other notable series produced by PTVS over the years include 13 Reasons Why, The Alienist, Station Eleven, Time Bandits, and The Spiderwick Chronicles.

Speculation about CBS Studios and Paramount TV Studios combining has actually been around since the 2019 CBS-Viacom merger was announced. Launched by Paramount Pictures’ Brad Grey in 2013, Paramount TV Studios has been the smaller of the two and its volume was impacted when Paramount+ pared down its scripted originals ramp-up plans to stem streaming losses. The studio continued to sell to outside platforms.

In her note to staff, Clemens, who joined PTVS in 2018, reflected on the label’s legacy.

“Over the past 11 years, PTVS has weathered seemingly insurmountable obstacles through a combination of strength, determination, and unwavering commitment,” she said. “We met these challenges with incredible resilience, creativity, and passion for what we do, and I could not be prouder of our team. We’ve also had the privilege to collaborate with some of the most brilliant creative talent in the industry to help tell incredible stories seen around the world, entertaining and shaping culture.”

Here are the two memos:

Note from Nicole Clemens: President, Paramount Television Studios

Dear PTVS Family,

As you’re all aware, Paramount Global has made the difficult decision to close Paramount Television Studios as part of the company’s broader restructuring plans. This has been a challenging and transformative time for the entire industry, and sadly, our studio is not immune.

Over the past 11 years, PTVS has weathered seemingly insurmountable obstacles through a combination of strength, determination, and unwavering commitment. We met these challenges with incredible resilience, creativity, and passion for what we do, and I could not be prouder of our team. We’ve also had the privilege to collaborate with some of the most brilliant creative talent in the industry to help tell incredible stories seen around the world, entertaining and shaping culture.

Although Paramount Television Studios is ending, our ethos will live on in shows that will continue to be enjoyed by global audiences for years to come. We’ve cemented our legacy by shepherding some of the most influential, award-winning, and critically acclaimed shows in the streaming era with series like “13 Reasons Why,” “The Offer,” “Defending Jacob,” “The Alienist,” “The Haunting of Hill House,” “Station Eleven,” “Time Bandits,” and many more. We have broken streaming platform records with “Tom Clancy’s Jack Ryan,” “Reacher,” and “The Spiderwick Chronicles.” Our upcoming shows, “Cross,” “Before,” and “Murderbot,” are sure to join the ranks of those hits.

This has been the most formative chapter in my career, and that is mainly due to the remarkable colleagues I have had the honor to lead and learn from on a daily basis. Thank you for supporting me, inspiring me, and laughing with me for the last six years — I wouldn’t have wanted to be in the trenches with anyone else.

I want to thank George Cheeks for his leadership and support through it all. There will undoubtedly be some tears as we move on, but this business is a marathon, and I am certain that we will cross paths, if not work together, again.

“Often when you think you’re at the end of something, you’re at the beginning of something else.” – Fred Rogers

With heartfelt gratitude,

Nicole

Note from George Cheeks: Co-CEO, Paramount Global and President & CEO, CBS

CBS Team,

As you saw from the email Brian, Chris and I sent earlier, this is a very difficult day at Paramount Global. I’m reaching out to share that today’s news unfortunately impacts CBS, including one of our studios.

A short time ago, we informed the team at Paramount Television Studios (PTVS) that the studio will cease operations at the end of the week. To be clear, this is not a decision based on how PTVS performed. This move is the result of significant changes in the TV and streaming marketplace and the need to streamline our company.

I want to thank PTVS President Nicole Clemens and the talented team she built for the many signature hits they produced. Under Nicole’s leadership, this studio consistently punched above its weight in attracting top storytellers and stars to create best-in-class series. I want to thank every PTVS employee for shepherding a slate of shows that helped usher Paramount into the streaming era.

Going forward, all current PTVS series and development projects will transition to CBS Studios.

In addition to PTVS, there are members of CBS teams who will be leaving the company. These are valued colleagues we admire and respect, whose talents contributed to the leadership position we enjoy today. I want to express my deepest gratitude for their contributions, hard work and dedication.

As we move forward, please keep these co-workers in your thoughts as our HR teams and their teammates help support them through this process.

There is a lot of news to unpack today. I know it’s unsettling. I continue to be impressed and grateful for our teams’ ability to stay focused and stick together during this transitional time.

George

Development Alert: MTV 80s And MTV Hits UK Have Been Merged With The EMEA Feeds

With Skydance currently undergoing a potential takeover of Paramount after receiving approval from Shari Redstone. The merged seeks reduce costs which amount to $2 billion dollars which may include retrenchment, possible sale of assets and as seen with Paramount+ content cuts.

In the UK, it had revealed by a viewer that MTV Hits and MTV 80s are both receiving the same frequencies as those seen in other parts of Europe (EMEA). For those who aren't familiar with these brands, MultiChoice once carried the pop centered MTV Hits before replacing it with jazz infused Qwest TV.

Canal+ who similar to Skydance are looking to also gobble up an existing company or in this case MultiChoice also distributes MTV Hits for consumers in Ethopia and alongside MultiChoice offer MTV, Nickelodeon and Nick Jr. 

Prior to these takeovers, Paramount was doing a lot of budget cuts take for instance the main MTV channel which had been unified across Europe. These endeavors had also reached kids brands Nickelodeon and Nick Jr. with MTV Base, BET and Nicktoons being exempted.

The UK has seen more cord cutting in recent months while Paramount only phased the localized versions of MTV's music offering. Channel 4 that serves as a local broadcaster in that market went as far as closing stations KISS, Magic, The Box and 4Music as low revenue was being generated. 

Paramount And Skydance Merger Facing A Class Action Lawsuit By A Shareholder

The suit, which was filed in Delaware court by Class B common stockholder Scott Baker, broadly alleges that controlling shareholder Shari Redstone forced through an “unfair” deal that benefits her and Paramount’s parent company National Amusements Inc (NAI) at the expense of Class B shareholders, who had no say in the deal.

The suit argues Redstone was intent on selling her interest in Paramount to Skydance “regardless of its impact on other Paramount shareholders.”

Through a unique ownership structure, the Redstone family’s holding company NAI owns 77% of the voting shares in Paramount, though it only holds a roughly 10% equity stake.

Under the proposed deal, Paramount’s Class B stockholders can cash out their shares at US$15. However, the suit alleges there isn’t enough money in the deal to buy out all of the non-NAI Class B shares. Instead, argues the suit, shareholders would get a mix of cash and Class B stock in the merged entity amounting to only US$12.23 per Class B shares.

The suit also alleges that Paramount’s board is “packed with Redstone insiders, over whom she exercises control,” and that Redstone has a history of controlling company boards and ousting directors in order to bring merger deals to fruition.

On the latter point, it cited the 2019 CBS-Viacom merger as an example of Redstone doing “everything in her power” to force a deal through, “even if it took her a couple of years and required ousting directors, packing boards of both merging companies with directors who would support her, and using NAI’s status as controlling shareholder to get what she wanted.”

In addition to Redstone, Paramount and NAI, the lawsuit also names Paramount board members Barbara Byrne, Linda Griego, Judith McHale, Charles Phillips and Susan Schuman as defendants, in addition to Skydance and its CEO David Ellison.

The filing of the lawsuit comes three weeks after Paramount and Skydance announced they had come to terms on a deal to form New Paramount following a lengthy negotiation process that saw several other bidders in the picture. The companies said they expect the transaction to close in the first half of 2025.

Through the deal, Skydance, which is backed by private equity firms RedBird Capital and KKR, will invest around US$2.4bn to acquire Paramount Global’s parent company, National Amusements, for cash and US$4.5bn for the stock/cash merger consideration to be paid for publicly traded Class A shares and Class B shares. It will also invest US$1.5bn to help improve Paramount’s balance sheet.

Ellison will serve as chairman and CEO of New Paramount, while Jeff Shell, the former NBCUniversal CEO who is currently chairman of sports and media at RedBird Capital, has been named president. Those appointments will become effective when the transaction closes.

The deal also includes a 45-day ‘go shop’ period, which allows Paramount to look for better offers before going with Skydance. However, going with another company would mean Paramount would have to pay Skydance a US$400m “breakup fee.” On Friday, billionaire Barry Diller, who emerged as a potential suitor last month, indicated that his company IAC was likely out of the running.

It had been widely assumed that the Paramount-Skydance deal would draw shareholder scrutiny and lawsuits, and there are expected to be several others filed in the coming months.

RUMOUR. TeenNick Might Be Replaced By Nicktoons In Latin America

The TeenNick channel recently adopted the new Splat graphic to align with the new global identity of the Nickelodeon brand. According to rumors, Paramount Global could discontinue the commercialization of TeenNick in the region and return to the Nicktoons channel, which is dedicated exclusively to broadcasting cartoons. 

Nicktoons already existed in Latin America, but stopped being commercialized in 2020 to make way for NickMusic, using the American music channel signal until today. Later, it was discovered that the channel never stopped broadcasting in Latin Spanish and Brazilian Portuguese. Now, Paramount seems to be reconsidering taking advantage of this signal, which is generated from the European subsidiary of the company. 

The user Nick Latam Promos revealed on X/Twitter that the Mexican cable operator Izzi has a new program for Nicktoons that will go into effect from July 19 at 21:00 hrs MEX, 22:00 hrs COL/PER, 23:00 hrs CHI/ FRI y 00:00hrs ARG . Until now, no other cable operator has updated its programming for the advanced dates of July, so this information should still be taken with caution and not as official.

Nicktoons programming includes series like "SpongeBob SquarePants", "The Loud House", "The Casagrandes", "ALVINNN!!! and the Chipmunks", "Teenage Mutant Ninja Turtles" (2012), "The Twisted Timeline Of Sammy & Raj", and "The Patrick Star Show", due to the relaunch of the channel in Latin America, would make its debut on the region's pay TV. the region. 

On the other hand, the programming of Nicktoons from the 19th of July was recently updated in the system, which increases the certainty of the information. 

In addition, the signals of Nickelodeon for Panregional and Brazil will receive a new programming, with fewer hours dedicated to live-actions, similar to the grid of the Mexican signal. This, along with the rumor of the return of Nicktoons, could be part of an effort by Paramount to give greater priority to animated series in the region.

The story was originally published on TVLaint

Paramount Global And Skydance Merger Will Shed $2 Billion In Cost Cutting Measures

Paramount Global parent National Amusements and Skydance Media have agreed to merge less than a month after the sides abruptly ended deal talks.

Paramount, owner of Paramount Pictures movie and television studios, the CBS television network and CBS News, announced in a news release late Sunday that it is combining with Skydance, an entertainment business founded by David Ellison, son of Oracle founder Larry Ellison. Paramount also owns the Paramount+ streaming service, Nickelodeon, BET, MTV, Comedy Central and other media brands. 

The transaction resolves months of speculation around the future of Paramount, which also reportedly attracted a $26 billion bid from a consortium including Sony Pictures and private equity firm Apollo Global Management. A range of prominent media and entertainment industry executives were also said to have expressed interest in a possible deal for Paramount.

Under the two-step deal, Skydance will first pay $2.4 billion for National Amusements, which controls 77% of the voting shares of Paramount. Shareholders with non-voting stock will receive $15 per share, or one share of non-voting stock in the new company. 

Class A shareholders other than National Amusements will receive $23 per share, or the right to get 1.5333 non-voting shares in the merged company. Paramount Global would then merge with Skydance in an all-stock transaction that values the latter at $4.75 billion.

The deal also gives other potential bidders for Paramount 45 days to submit a competing offer, an apparent effort to appease shareholders who felt Skydance's initial bid undervalued their stake in the media company. The transaction is subject to regulatory approval. 

Uniting old and new Hollywood

The deal unites Paramount — a storied movie studio dating back to 1912 that is known for film classics such as "Titanic," "The Godfather" and "Raiders of the Lost Ark," as well as franchises including "Star Trek" and "Mission Impossible" — with a relative newcomer to the entertainment industry. Since David Ellison launched Skydance in 2010, the company has produced or co-produced hit films and TV shows including "Top Gun: Maverick" and the "Reacher" streaming series. 

"This is a defining and transformative time for our industry and the storytellers, content creators and financial stakeholders who are invested in the Paramount legacy and the longevity of the entertainment economy," Ellison said in a statement. "I am incredibly grateful to Shari Redstone and her family who have agreed to entrust us with the opportunity to lead Paramount. We are committed to energizing the business and bolstering Paramount with contemporary technology, new leadership and a creative discipline that aims to enrich generations to come."

Ellison will serve as chairman and CEO of Paramount, and Jeff Shell, chairman of RedBird Sports and Media, a unit of investment firm RedBird Capital Partners, will become president. Shell is the former CEO of NBCUniversal.

Redstone's final act

For Shari Redstone, the controlling shareholder in National Amusements, the deal brings to a close her family's long stewardship of Paramount, which was built on the foundation laid by her late father, entertainment mogul Sumner Redstone. In recent years, that effort has focused on growing Paramount's streaming footprint, along with the continued expansion of its core network TV, cable and movie businesses. 

"In 1987, my father, Sumner Redstone, acquired Viacom and began assembling and growing the businesses today known as Paramount Global," Redstone said in a statement. "He had a vision that 'content was king' and was always committed to delivering great content for all audiences around the world. That vision has remained at the core of Paramount's success and our accomplishments are a direct result of the incredibly talented, creative and dedicated individuals who work at the company. Given the changes in the industry, we want to fortify Paramount for the future while ensuring that content remains king."

The merger with Skydance follows what has been a fraught negotiation in which Paramount executives sought to balance the interests of investors who own the company's voting shares — which are primarily controlled by Redstone — and investors with non-voting stock. The latter are represented by large institutional investors such as Berkshire Hathaway and Vanguard, according to financial data firm FactSet.

The deal also follows the April 29 departure of former Paramount Global CEO Bob Bakish, who was replaced by an Office of the CEO led by three division chiefs: George Cheeks, president and CEO of CBS; Chris McCarthy, president and CEO of Showtime and MTV Entertainment Studios; and Brian Robbins, president and CEO of Paramount Pictures and Nickelodeon.

After the initial deal to combine National Amusements and Skydance collapsed on June 11, Paramount's new leadership disclosed plans to cut costs by $500 million, explore a joint venture or other possible partnerships for Paramount+, and sell non-core assets. It is uncertain how that blueprint could change under Skydance's watch. 

In a call with Wall Street analysts on Monday to discuss Paramount's future, Shell said RedBird and Skydance had identified roughly $2 billion in potential cost savings.

In its most recent quarter, Paramount reported an operating loss of $417 million on revenue of $7.6 billion, compared with a loss of $1.2 billion on revenue of $7.2 billion in the year-ago period. Skydance, which is privately held, expects its annual revenue to reach $1 billion in 2024, according to The Wall Street Journal. 

The sale of Paramount also highlights ongoing consolidation within the media space as industry stalwarts like Paramount and CBS seek to compete with much larger competitors, including technology and entertainment companies. 

Skydance Media Gets Board Committee Approval For Control Of Paramount Global After Lengthy Chase

David Ellison‘s Skydance Media has gained a key approval vote for the company’s proposed acquisition of Paramount Global controlling shareholder National Amusements Inc. after seven months of talks.

The deal was blessed Sunday by a special committee of Paramount’s board of directors, a person familiar with the matter told Deadline. A formal announcement is expected as soon as Monday morning.

Bloomberg News earlier Sunday was the first to report on the special committee vote.

While the board committee action is a milestone, one of the features of the current agreement is a 45-day “go-shop” provision, which allows NAI chief Shari Redstone to field alternative offers. Apollo Global Management, Barry Diller and Edgar Bronfman Jr. are among those who have explored bids. Apollo, both on its own and in partnership with Sony Pictures, has submitted formal offers in recent months but they haven’t gained much traction.

Under terms of the Skydance agreement, Redstone and her family will receive $1.75 billion, with additional funds going toward Paramount debt repayment. The transaction is expected to be the first of two parts, with a full merger between Skydance and Paramount Global to follow. NAI controls nearly 80% of Paramount’s Class A, or voting, shares. It holds only about 10% of its equity value, with that disparity adding to the complexity of deal negotiations in recent months.

Skydance is a longtime partner with Paramount Pictures as a co-financier on marquee franchises like Mission: Impossible, Star Trek, Transformers and Top Gun. Along with the 112-year-old movie studio, Skydance will gain control of a portfolio including CBS, Nickelodeon and Paramount+. Unlike other bidders aiming to break up the company, Skydance is seen as wanting to preserve the entity in much the same shape as it currently exists, though there will undoubtedly be significant cost cutting. That strategic vision helps explain Redstone’s longtime preference for Skydance over some other suitors, according to sources familiar with the deal talks.

Less than a month ago, it seemed that any hope of the parties reaching a deal had evaporated. Redstone pulled out of a planned deal at the 11th hour over concerns regarding her net proceeds and exposure to shareholder lawsuits. While earlier Skydance overtures caused Paramount’s already battered stock to sink even lower due to concerns about shareholder dilution, the most recent go-round has boosted the share price. In Hollywood and media circles, the Paramount M&A watch has punctuated a period marked by existential anxiety and fears emerged of another major studio poised to disappear in the wake of Fox’s absorption by Disney.

Ellison and his backers (reportedly including his father, billionaire Oracle founder Larry Ellison) were undaunted by Redstone’s last-minute reversal in June. Parting with the media empire built by her father, Sumner Redstone, has never been an easy process. Shari Redstone, after taking the reins a decade ago as Sumner Redstone’s health declined, succeeded with signature initiative, bringing Viacom and CBS back under the same corporate umbrella after multiple attempts. The merger of the companies into what is now Paramount Global closed in December 2019.

The triumph of shepherding the merger turned out to be short-lived, with Covid and numerous other difficulties piling up as two companies became one. Today, Paramount faces considerable challenges on many fronts. The company, which is a fraction of the size of top media rivals Disney and Comcast, is straining to make a profit in streaming as it confronts secular declines in its linear TV business and an unsettled moviegoing climate. While Paramount shares have enjoyed an uptick on the merger news, they are still worth less than one-third what they were when Viacom and CBS came together.

As the company has explored various M&A scenarios, it has also jettisoned longtime CEO Bob Bakish in favor of a tripartite Office of the CEO consisting of veteran execs George Cheeks, Chris McCarthy and Brian Robbins. At the company’s annual shareholder meeting and a subsequent town hall with employees last month, the execs laid out their strategy, which consists of reducing expenses (targeting $500 million in annual cost savings), maximizing the asset portfolio and exploring streaming partnerships or joint ventures. Just before the most recent Skydance news broke last week, there were reports of Paramount in talks to sell BET and discussing a streaming partnership with a third party.

“While we recognize that this is not a traditional management structure, we are confident that it will enable them to move quickly to implement best practices throughout the company and to drive improved performance,” Redstone said at the annual meeting.

As the Office of the CEO gets set to pass the baton (former NBCUniversal CEO Jeff Shell is waiting in the wings as part of the Skydance bid), yet another round of downsizing will reshape the company’s workforce. At the end of 2023, the company had 21,900 full- and part-time employees.

“We’d like to take a moment to acknowledge the challenges of all the M&A speculation surrounding our company,” Robbins said during the town hall. “We know what a difficult and disruptive period it has been. And while we cannot say that the noise will disappear, we are here today to lay out a go-forward plan that can set us up for success no matter what path the company chooses to go down.”

Paramount And Skydance Are Said To Reach A Deal To Merge

Just weeks after Paramount’s controlling shareholder and Skydance abruptly ended merger talks, the two sides have reached a preliminary deal to create a new Hollywood giant, four people familiar with the negotiations said Tuesday.

The agreement will still have to be approved by a special committee of Paramount’s board of directors, said the people, who spoke on the condition of anonymity as talks resumed.

Paramount — the parent company of CBS, MTV and Nickelodeon — and Skydance, the up-and-coming movie studio that helped produce “Top Gun: Maverick,” called off talks in June just before a scheduled vote on a merger. While the two sides had agreed on economic terms, Shari Redstone, Paramount’s controlling shareholder through its parent company, National Amusements, had clashed with Skydance in the final weeks of negotiations.

But the two sides have continued to talk, and now the Paramount board committee will evaluate whether new terms will be sufficiently palatable for shareholders, some of whom pushed back significantly against the last proposed deal. One likely point of focus will be the extent of protection offered to National Amusements in event of shareholder lawsuits.

In this latest deal, National Amusements’ equity would be valued at $1.75 billion, up slightly from $1.7 billion in the transaction’s last incarnation, three of the people said.

Paramount Global Is In Exclusive Talks To Sell BET For $1.6 Billion

Paramount Global is in exclusive talks to sell its Black Entertainment Television network to buyers that include BET Chief Executive Officer Scott Mills and Chinh Chu, who runs the New York-based private equity firm CC Capital.

The group has been discussing an offer of $1.6 billion to $1.7 billion, people familiar with the matter said, asking not to be named revealing information that’s not public. 

Last year, the same group had discussed an offer of a little under $2 billion, Bloomberg reported in December. Chu and Mills are rekindling discussions with Paramount for BET after Shari Redstone, who has a controlling stake in Paramount, walked away from a proposed merger with Skydance Media, the company led by David Ellison. 

Representatives for Paramount and Chu declined to comment. Mills didn’t respond to a request for comment. The shares jumped on the news and were up 4.2% to $10.56 at 2:28 p.m. in New York.

Paramount, which owns CBS, MTV and other networks, had also previously received an offer from media mogul Byron Allen, who put together a $3.5 billion bid last year for both BET and the VH1 channel, and emphasized that BET should be Black-owned. Actor and filmmaker Tyler Perry, who is an investor in the BET+ streaming service, also held discussions about purchasing a stake in the larger enterprise.

The sale process last year was “disrespectful,” Perry said at a Bloomberg event last year. “Don’t try to get me to pay for something that’s not worth anywhere near the value” Paramount said it was, he said at the time.

Founded in 1980 by businessman Robert L. Johnson, BET was sold to Paramount’s predecessor, Viacom, in 2001 for about $3 billion. The network has strong ties to some of the most successful Black entertainment creators, including Perry, Kenya Barris and Rashida Jones, who are investors in the BET Studios production company.

Paramount has said it’s working to cut $500 million in costs to boost profitability. 

Barry Diller's IAC Is Exploring A Bid To Take Control of Paramount Global

Media mogul Barry Diller is taking a look at acquiring National Amusements Inc., the company owned by Shari Redstone and the controlling shareholder of Paramount, CNBC reported on Tuesday.

Diller's IAC, an internet media and publishing company, has signed a nondisclosure agreement and is looking in the data room of National Amusements, Faber said Tuesday. 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, he said, citing sources.

These discussions come weeks after National Amusements stopped talks with Skydance on a proposed merger with Paramount.

Following months of deal talks with a consortium that included David Ellison's Skydance and private equity firms RedBird Capital and KKR, the deal was called off as it awaited signoff from Redstone. National Amusements, which Redstone controls, holds 77% of class A Paramount shares.

Prior to calling off the proposed merger, National Amusements had agreed to financial terms of the deal. 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. Skydance and RedBird had also agreed to contribute $1.5 billion in cash to Paramount's balance sheet to help reduce debt.

Terms of IAC's potential bid are unknown, but it would likely have to be more than $2 billion, Faber reported Tuesday. The New York Times first reported Diller's interest in Paramount.

While Diller, 82, is currently 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 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.

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 plus streaming services Paramount+ and Pluto.

While other suitors have reportedly been interested in owning Paramount, the company has been focused on restructuring its business.

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 — Paramount has concentrated on exploring streaming joint venture opportunities with other media companies, slashing $500 million in costs and divesting noncore assets.

Paramount Global Is In Talks For A Streaming Merger

Paramount Global is currently in discussions with other entertainment companies about merging its Paramount+ streaming service with an existing platform. If successful, this could trigger a wave of similar partnerships across the media sector and strengthen the industry as a whole.

The leadership at Paramount Global is actively exploring potential structures for merging Paramount+ with another streaming entity, potentially leading to a co-owned platform. These discussions, which are private, involve various media and tech company executives.

Warner Bros Discovery Inc has shown interest in such a deal, which could strengthen both services by allowing them to better compete with Netflix Inc and Disney’s suite of platforms (Disney+, Hulu, and ESPN) for audience and future content.

Earlier this year, preliminary merger talks were held for a complete deal with Paramount Global, but these discussions did not progress.

Paramount Global is also considering a potential partnership with a technology platform, as revealed by the company's co-CEO Chris McCarthy at an employee town hall on June 25.

A merged streaming service could offer more diverse programming, reducing customer churn and potentially removing Paramount+ losses from Paramount Global’s balance sheet by introducing new ownership.

While the structure for a potential joint venture with Warner Bros. Discovery hasn't been discussed in detail, it is likely that ownership wouldn't be evenly split due to the current nature and finances of the streaming assets.

Max, Warner Bros. Discovery's direct-to-consumer business, boasts about 100 million global subscribers, with 52.7 million based in the U.S. Meanwhile, Paramount+ ended its first quarter with 71 million subscribers.

NBCUniversal, owned by Comcast Corp, has also shown interest in a joint venture with Paramount+. However, these discussions did not progress significantly.

Since late 2019, traditional media companies including Paramount Global, Disney, NBCUniversal, and Warner Bros. Discovery have all launched streaming services, resulting in billions of dollars in losses. The industry consensus suggests there are too many streaming services relative to the number of total paying customers.

If Paramount finalizes a joint venture with either Max or Peacock, it could put pressure on the remaining service to seek a similar deal.

Media companies are now focusing on better monetizing streaming content through bundles and partnerships. For example, Disney and Warner Bros. Discovery have recently become more willing to license some of their content to rival streaming services, such as Netflix, to better monetize shows that aren't adding a lot of new subscribers to their streaming services.

Paramount Global Is Believed To Be Ending Their Partnership With AMC Networks International For CBS Reality And CBS Justice

Not long ago, it was reported that AMC Networks International will be axing one of the few CBS branded stations in Europe as part of a joint venture with Paramount Global, CBS Europa. Other channels part of this agreement include CBS Reality and CBS Justice. 

As we've mentioned sometime ago, we don't envision True Crime replacing the remaining feeds for CBS Reality but more likely the African feed for CBS Justice. Unlike the UK, CBS Reality was positioned as a factual channel so maybe something like Reality TV.

AMC Networks International had been phasing out the CBS trademark across their portfolio this started out in the UK by 2022 and will reach Poland in the coming months. Since then, it has been long speculated that Paramount Global is looking to exit this partnership.

This means channels like CBS Reality and CBS Justice will be phased out in these endeavors seeing as Paramount own the CBS trademark.  It also means AMC Networks International will have to find new names for these channels or close them altogether. 

Their other partner Paramount Global is going through financial constraints and had since auctioned themselves to several bidders. It attracted interest from Sony Pictures Television and Apollo with more advance talks reaching Skydance Media. 

However talks with Skydance Media fell through as Shari Redstone backed out of the deal at last minute. 

Shari Redstone who serves as majority shareholder has been trying to keep her family’s company together and under immense pressure. It will have to look at shedding costs either by getting out of all deals (including AMC) or selling BET and Showtime. 

After 25 Years, AMC Networks International Will Be Changing CBS Europa In Poland To Film Cafe

In June 2022, the British arm of the AMC-Paramount partnership revised their channel line-up with nearly all CBS branding being dropped. CBS Reality remained on air in the region during that time before being phased out for True Crime the following year.

Since then, the remaining CBS channels seen in Europe and Africa were a subject for numerous speculations. One of which included the possible demise of CBS Justice in Africa and CBS Reality following their demises in some parts of Europe as reported. 

According to the Polish website satkurier.pl, CBS Europa will change its name to Film Cafe by August 21, 2024. From what we've discovered, this trademark was already in use by AMC Networks International for another TV channel in Scretonia.

The only difference here would be the logos while Film Café in Scretonia operates independently from the rest of Europe. Based on the style and font, the one set to replace CBS Europa in Poland is being aligned to the AMC channels viewed in the UK.

Despite the variation in logos, CBS Europa and Film Café offer similar premises as they are movie channels revolved on the female audience. From what we assume, AMC and Paramount might be looking to retire the CBS trademark across their portfolio. 

No word on what awaits the feed of CBS Justice but by my guess that will probably rebrand to True Crime while CBS Reality is shortened to Reality TV or becomes True Reality.

Shari Redstone, Paramount End Talks With Skydance

After months of negotiations, Paramount‘s controlling shareholder Shari Redstone has broken off merger talks with David Ellison‘s Skydance, according to the WSJ.

The two sides have been deep in discussions during and after a one-month exclusive negotiating period in April and Redstone at one point had favored the deal, which would have paid her a premium, and kept the businesses together, at least initially. The transaction was for Skydance to acquire Redstone’s family holding company NAI, which controls Paramount, and then see Par and Skydance merge.

As of this weekend talks were intense but there were a few major sticking points, one said to be over which party party would assume legal liabilities in the case of shareholders lawsuits.

Paramount Global stockholders vocally disliked the deal from the start and threatened to sue. Skydance, backed by Larry Ellison and Gerry Cardinale’s RedBird Capital, revised the deal several times to sweetened the pot for them, but they still weren’t enamored.

Meanwhile, a few other bidders had emerged to acquire Shari Redstone’s controlling stake in a deal that would be a change of control of the publicly traded company, but not a merger. Producer Steven Paul put together a group of deep-pocketed investors and is interested. And former Universal chief Edgar Bronfman, Jr., backed by Bain Capital, is also looking at a deal.

Paramount Confirms Merger Plans For Their Streaming Service

For many months now, Hollywood insiders and industry commentators have been talking about Paramount+ — at least the service as it currently exists — as a dead streamer walking. This week, however, the obituary notices started coming from within the building.

During a shareholder presentation Tuesday, the three execs currently running Paramount Global (at least for now; the company may be on the verge of being sold) announced that they had a plan to “transform” the company’s streaming strategy, which currently focuses on the stand-alone streamer Paramount+ (and, to a lesser degree, free streamer Pluto TV). Toward this end, the trio said they had begun actively exploring the formation of a joint venture with either a rival streamer or a tech company — and that they’d already received interest from possible partners. While they didn’t go into any details of what such a joint venture would entail, both history and common sense suggest an outcome where Paramount+ either becomes a tile on another service, or its content gets folded into a new or existing platform featuring content from multiple companies, similar to how Hulu at one time existed as a partnership among ABC, NBC, and Fox’s corporate owners.

The execs went out of their way to stress that they’re not thinking small here. “Let me clear: I’m not talking about marketing bundles,” like the one Disney and Warner Bros. Discovery are planning, said Chris McCarthy, president/CEO of Showtime/MTV Entertainment Studios and Paramount Media Networks, and part of Par’s three-headed exec branch. Instead, the company is looking to form “a deep and expansive relationship, one that would make the most of our hit content while improving the customer offering.” McCarthy said Par wants a new paradigm that both reduces subscriber churn and, perhaps most importantly, controls cost.

It’s not that Par execs think their programming isn’t popular enough to work in a subscription universe. Quite the opposite: The exec trio talked up the populist appeal of its content and noted Paramount+’s ability to become a top-five streamer just a couple of years after launch, with over 70 million global subscribers. But Paramount has decided the costs of running its own streaming service — marketing dozens of shows, finding a user interface that actually works, etc. — are too high. Instead, it wants to create a new blueprint where Paramount content (CBS shows, MTV reality series, the Yellowstone universe, Paramount Pictures movies) has a guaranteed home, but not in an expensive, self-contained luxury island where Par shareholders pay the full mortgage. Think of it this way: Paramount wants to move its streaming offering from the ritzy mountaintop mansion where it’s lived the past few years and relocate it to a still very nice duplex condo where another owner (or owners) helps pay for building upkeep.

To underscore just how serious they were about moving on from the current Paramount+ status quo, McCarthy said the company has “already had a great deal of an inbound interest” in the idea and that there would be more details “soon.” It’s worth noting here that back in February, The Wall Street Journal reported that Paramount had engaged in conversations with Peacock owner Comcast about a Peacock–Paramount+ merger “through a partnership or joint venture” — the exact same wording McCarthy used this week. The paper has also reported Warner Bros. Discovery’s interest in a team-up. Nothing has happened publicly on this front, in part because of the aforementioned potential sale to David Ellison’s Skydance Media, producer (with Par) of the recent Mission: Impossible and Top Gun movies and TV shows like Reacher and Jack Ryan. Per multiple published reports, the Skydance-Paramount deal is both all but done and possibly in doubt, given some supposed last-minute doubts from Shari Redstone, the media mogul who basically controls Paramount through her family’s movie-theater chain National Amusements.

It’s this uncertainty that may explain why Tuesday’s admission by Paramount’s current leadership that Paramount+ as a stand-alone business no longer makes sense hasn’t generated a ton of headlines. Fact is, as long as there’s a strong chance that new ownership could be taking over, any plans from the current “office of the CEO” of Paramount Global come with a major asterisk attached. It’s hard to imagine any potential Paramount+ partner would sign a deal without knowing for sure that either the people executing said deal will be around to see it through or that the new owners are onboard with the idea. And then there’s this: Many in the media and Wall Street have been operating under the assumption that Paramount+ as it is now isn’t long for this world, and that any new owner, including Skydance, would look to make a meaningful change in streaming. (In fact, I continue to hear rumblings from very good sources that a Peacock–Paramount+ team-up of some sort is more likely than not, however the current ownership drama gets resolved.) So the fact that the current management officially signed on shaking things up might not read as worthy of a breaking-news alert.

But if Redstone’s supposed waffling ends with the Skydance bid being called off and Paramount Global moving forward with one or all of its current leaders, then this week will go down as a very important milestone in the streaming wars. Five years after Apple and Disney officially kicked off hostilities versus Netflix in the race to win SVOD share, a major combatant could be getting ready to sue for peace.

Source: Vultures 

Paramount And Skydance Media Agree To Terms Of A Merger, Awaiting Approval

Paramount and Skydance have agreed to terms of a merger. A deal could be announced in the coming days, he said.

A Paramount special committee and the buying consortium — David Ellison's Skydance, backed by private equity firms RedBird Capital and KKR — agreed to the terms. The deal is awaiting signoff from Paramount's controlling shareholder, Shari Redstone, who owns National Amusements, which owns 77% of class A Paramount shares, Faber said Monday.

The agreement terms come after weeks of discussion and a recent competing offer from Apollo Global Management and Sony Pictures.

"We received the financial terms of the proposed Paramount/Skydance transaction over the weekend and we are reviewing them," said a National Amusements spokesperson.

The deal currently calls for Redstone to receive $2 billion for National Amusements, Faber reported Monday. Skydance would buy out nearly 50% of class B Paramount shares at $15 apiece, or $4.5 billion, leaving the holders with equity in the new company.

Skydance and RedBird would also contribute $1.5 billion in cash to Paramount's balance sheet to help reduce debt.

Following the deal's close, Skydance and RedBird would own two-thirds of Paramount, and the class B shareholders would own the remaining third of the company, Faber reported. The negotiated terms were reported earlier by The Wall Street Journal.

The deal will not require a vote from the shareholders, which was part of the negotiations, Faber reported. Paramount's annual shareholder meeting will take place on Tuesday.

The deal is valued at $8 billion, an increase from the $5 billion offer on the table earlier. Under those earlier terms, Redstone would have received less than $2 billion for her stake, and the class B shareholders would have been bought out at a nearly 30% premium at $11 a share.

In early May, Apollo and Sony formally expressed interest in acquiring Paramount for about $26 billion. However, Redstone has favored a deal that would keep Paramount together, and Apollo and Sony planned to break up the company.

In addition to the twists and turns of the negotiations with buyers, Paramount's C-suite has also undergone a shakeup in recent months.

Bob Bakish stepped down as CEO in late April and was replaced by what the company calls the "Office of the CEO." Paramount is now led by three executives: George Cheeks, CBS president and CEO; Chris McCarthy, president and CEO of Showtime/MTV Entertainment Studios and Paramount Media Networks; and Brian Robbins, the head of Paramount Pictures and Nickelodeon.