Paramount Is Possibly Going Up for Auction

Warner Bros. Discovery and Skydance Media are at the negotiating table, discussing the potential acquisition of media company Paramount. The deal centers around acquiring a controlling stake in Paramount, currently held by majority owner Shari Redstone. Owning her majority shares would mean a pivotal transition for the company.

Redstone isn’t just any media executive. She has her hands on the helm of Paramount Global and National Amusements, the latter holding a whopping 77% of Paramount’s voting shares. This isn’t a small transaction; selling this share in Paramount hands the keys of control over to the highest bidder.

The negotiations are in the introductory stages, and there’s more than just these two parties at play. Investment firms also eye a piece of the pie, which could potentially escalate the selling price for Paramount. Warner Bros. Discovery, in particular, has shown keen interest in Paramount, even exploring merger options with the Paramount Global CEO, Bob Bakish, last month.

As the talks with Skydance Media and Warner Bros. Discovery progress, there’s an increased likelihood of them crumbling under the pressure of escalating costs driven by the entry of investment firms. No auction date is set in stone yet, but sources indicate that financial experts have initiated the process of sharing Paramount’s details with interested bidders.

The stakes are high as the new owner of National Amusements would not only have control over Paramount but also a suite of popular cable TV networks. This includes heavyweights like Nickelodeon, Comedy Central, MTV, and several movie theaters.

The backdrop to this high-stakes game is a tumultuous time for the entertainment industry. Cable TV viewership is on a downhill path, and most streaming platforms are grasping for profitability. Paramount’s own streaming service, Paramount+, is among those struggling in the fierce battlefield of streaming services.