#BlockTheMerger: Could Sony And Apollo's Possible Acquisition Of Paramount Global Be A Good Thing For MTV And Nickelodeon?

Not long ago, it was reported that Sony and Apollo would be making a joint bid to acquire Paramount Global. This comes after Paramount Global had rejected Apollo's initial offer as talks are still underway with Skydance over a possible restructure.

Similar to Canal+, Sony faces legal hurdles as foreigners are given restrictions pertaining to ownership of a local company. Apollo Global Management is basically their BBBEE or another case they're way of securing the entertainment company. 

Sources had outlined that Sony was looking to distance themselves from the streaming wars years after closing and selling their linear operations. Apollo was looking to possibly merge Paramount+ with another streamer putting its future in a dark corner.

Not that the content would be phased out in the process but if you're living abroad and getting a portion of this content on Paramount+. Them closing and merging it with another broadcaster further lessen the lineup.

Same goes with the Paramount trademark in general as it could as well be folded under Sony.

As for their linear operations, don't expect much improvement there content wise as consumption and revenue for these channels continue to decline. If anything, don't be surprised if they choose to close/sell a few if not all channels globally.

Apollo had hinted at that when making the initial bid for Paramount with film studios. When you look at it, Nickelodeon and MTV would probably be more like CW reliant on third party content and archived material from Paramount while first run content are shipped to other platforms. 

This is an endeavor we envision could await local consumers in the United States while other countries go through a similar fate as Disney's FOX and Disney XD channels.

The Canal+/MultiChoice Effect: Sony Reportedly In Talks To Join Bid With Apollo To Acquire Paramount Global

Even as Paramount Global continues to hold exclusive talks with David Ellison’s Skydance and Gerry Cardinale’s Redbird Capital, another potential buyer group is considering its own moves.

It has been confirmed that executives at Sony Corp., including Sony Pictures chief Tony Vinciquerra, have been in touch with Apollo Global Management about making a joint bid for the entertainment company.

Apollo had previously made a $26 billion offer for Paramount, inclusive of equity and debt, though it was reportedly dismissed. But partnering with Sony would likely eliminate any cash or financing concerns.

The New York Times first reported the Sony talks, adding that no offer has been made, given that the exclusive negotiating window is still in place. The Times reported that one structure under consideration would see Sony and Apollo effectively take Paramount private, with Sony owning a majority of the company, with Apollo operating as a minority owner..

The actual structure of the deal is not clear, though the Paramount film and TV studios would likely fit in nicely with Sony’s own studios. It would raise questions about both Paramount+, given Sony’s decision to avoid entering the streaming wars, as well as Paramount’s linear TV assets, including CBS. There are federal regulations restricting foreign ownership of U.S. broadcast stations, and as a Japanese company Sony could face scrutiny under such rules.

Meanwhile, the talks between Skydance and Paramount continue, with a source saying that the Ellison-led company has articulated a plan to deliver operating efficiencies, and to leverage the executive teams at both Skydance and Redbird (including former NBCUniversal CEO Jeff Shell), to help turn Paramount around. Paramount would remain a public company under the Skydance deal.

Some investors have complained about the decision not to pursue the Apollo deal, given the all-cash offer.

Shares in Paramount rose in after-hours trading, after reports about the talks were published.

Recap To Last Year: Could The Crunchyroll Streaming Service Expand Its 24 Hour Service To DStv And StarSat Or Fold Under Openview's Ultraview?

Crunchyroll is an anime based streaming platform operated as part of a joint venture between Sony Pictures Television and Aniplex. Founded in 1994 as FUNimation, it is known for anime, films and TV series including Dragonball, My Hero Academia and Attack On Titan. 

Last year, Crunchyroll through one of their partners Sony Pictures Television expanded the streamer outside of its comfort zone with a 24 hour channel in Latin America. As some readers are aware, Crunchyroll is looking to duplicate this in key markets.

Although, they haven't specified which region would get access to the 24 hour service. It's likely that they're going to look into regions where they have no local presence whatsoever and others that do have some streaming presence but still recieve plenty of linear consumption.

The introduction of Crunchyroll Channel would come 13 years after Animax had exited Africa for also defunct brand Sony Max on DStv and other parts of the world. Since then, it has only been SABC 2, Toonami and Cartoon Network to ramp up a similar offering in Africa but not full-time.

The only problem pertaining to them is that the latter doesn't offer the full line-up of content. Take for instance Cartoon Network, it's current demographic only caters to shows like Pokémon followed by Toonami and SABC 2 whose slate has been repetitive in the last year.

As for Crunchyroll, I believe they're just looking to expand out of streaming and reach new audiences. It would prove to be very beneficial especially in regions which the brand lacks any type of local presence.

Similar to Disney+ and Britbox, even Crunchyroll has no presence in some of Europe and Africa. In some of these areas, there was an alternative offering Animax which too was managed by Sony battled a tough economic climate and struggled to sustain themselves in the regions.

If Crunchyroll were to debut in Africa it would help free up the responsibility from Cartoon Network and SABC 2 as they can prioritise on their other content. It would also serve as a replacement to the defunct Animax brand in Africa that is if DStv opts to carry the channel.

Other platforms in the market that could as well acquire Crunchyroll Channel include Openview Ultra, StarTimes, Azam TV, Canal+ and Zuku TV.

Development Alert: Crunchyroll To Get A Dedicated TV Channel In North America With Global Plans On The Cards, Could MultiChoice Or StarTimes Perhaps Get It?

Since 2006, Crunchyroll has been known as the leading destination for anime fans featuring shows such as My Hero Academia, Demon Slayer, Attack On Titan and One Piece. Since it's inception in 2006, it garnered 120 million subscribers globally with 1% of the population under a paywall.

For a decade, the Sony based brand was available only as a streaming service with a freemium tier available to low income households with select shows licenced to broadcasters in Africa such as Toonami and SABC 2.

Through the greenhouse website, it was revealed that the company is looking for a director/manager in charge of managing the upcoming linear service to the current Crunchyroll streaming service alongside the programming and operations for the brands.

For now, the channel will rollout in North America (likely Latin America) and through a statement it was also mentioned that the Crunchyroll Channel will rollout "in key markets around the world" so we assume they'll be targeting regions which already bundle the streaming service.

South Africa is the most notable within the African region to bundle Crunchyroll alongside various other streaming services such as The Walt Disney Company's Disney+, BBC and ITV Studios' BritBox and Vuclip's VIU. As other territories have yet to see these in their markets.

With a majority of gaming and anime fans residing within South Africa and selected African territories, there's no doubt that Crunchyroll Channel would be a resounding success but questions amounts to whether or if StarTimes and/or MultiChoice will look into adding the channel.

Crunchyroll catering for the same audience as Adult Swim and not Cartoon Network isn't regarded as a kids channel so if anything these channel will likely set alongside brands like Universal, M-Net and BBC Brit on DStv or FilmBox Africa, FilmBox Action and St Zone on StarSat.