All Deals Are Off For Paramount: Now What?

 Can Paramount Global recover from the PR disaster which has been its M&A attempts this year to return as a thriving, competitive entity? On the bombshell news that Shari Redstone, CEO of Paramount’s controlling National Amusements, Inc. torpedoed the SkyDance Media offer that looked like a done deal, Paramount itself is left in a very unenviable position. Brandon Blake, an entertainment lawyer with Blake & Wang P.A., surveys where the group now stands.

 


Brandon Blake

A Cancellation Not Well Received

From Paramount’s tanking share price, which reached its lowest point in five years off the back of the news, to the frantic rounds of insult-trading and lawyering up we have seen, one thing is clear— the rest of Paramount’s stakeholders aren’t happy.

 

Not helping that overall atmosphere are the reports that Redstone jettisoned the deal from a combination of her personal offer waning as SkyDance sought to court non-voting shareholders and a general annoyance at the press (and everyone else) for thinking the deal was done. Not to mention rumors that part of the decision came from SkyDance not protecting her against potential lawsuits from those disgruntled shareholders.

 

In truth, the fact that a vote between minor and major shareholders didn’t come to fruition may well have a big hand in that, but let’s be honest—the optics of all of that are simply not good and should have been far more carefully considered.

Resurrecting a Legacy

So where to from here for Paramount? While the Sony/Apollo deal (and possibly Byron Allen’s often-forgotten offer) may still work out in some way, especially if the Paramount Group looks to jettison some of its assets, this perceived petulance is unlikely to make many other companies come out the woodwork with a deal for National Amusements itself.

 

Those actively working within Paramount seem to feel the company has what’s needed to recover from its unenviable position. Conversations around BET and Showtime, as well as Pluto TV, are likely to occupy the void the Paramount deal has left. Plus, reportedly, Redstone has given Paramount an 18-month deadline to “right the ship” and return it to a competitive entity.

For now, it seems the best path forward for Paramount is cost cuts and restructuring, finding a partner, and selling off some of its assets to serve its $12B in debt. It will be fascinating to see what comes of it all.

Comments

Post a Comment

Popular posts from this blog

Is Kung Fu Panda 4 the Key to a Reinvigorated 2024 Box Office?

Image
 With Dune: Part Two having finally powered up the 2024 box office, it's time to build on that impetus if the wider box office recovery is to continue. There could be another strong contender lurking in the wings for this weekend’s releases- but it will doubtless surprise you to learn that this hope lies with the fourth installment of the animated Kung Fu Panda saga! Blake & Wang P.A. entertainment attorney Los Angeles , Brandon Blake, has more on this ironic twist for us.                                                                          Brandon Blake Two $40M Grosses on the Cards For the first time since July 2023 and the Barbenheimer dual release, we have a chance at not one, but two, films grossing over $40M this weekend. In fact, those figures may top $50M! While Dune: Part Two has had the benefit of massive hype and anticipation, Kung Fu Panda 4 may well turn out to be the more profitable production. Dune: Part Two has already grossed over $100M globally,
Read more

Netflix Ad Tier Turns in Fantastic Growth

Image
 What a difference half a year can make! With Netflix’s ad-supported subscription tier first launched only 18 months ago, the streamer has managed to nearly double its subscriber base since the start of 2024. Blake & Wang P.A. entertainment lawyer , Brandon Blake, fills in the details. Brandon Blake Impressive Subscriber Gains Netflix’s total subscribers for the ad-supported tier now number 40 million monthly active users. In January 2024, it was 23 million. The streamer was understandably gleeful to reveal this news at its first in-person Upfronts presentation in New York earlier this month. At its first-ever Upfronts presentation, which was held digitally in 2023, the ad tier had 5 million monthly active users.   Additionally, we were told that 40% of active signups now opt for the ad-supported plan, in countries where it is currently available. Of course, much of this can be attributed to a rather kind price ($7 domestically) for this tier, well below most of the other
Read more

Hulu on Disney+ is Officially Here

Image
While the Hulu on Disney+ Beta bundle has been live since last year, we have officially reached the point of full integration. Intriguingly, much of the executive focus on the new bundle has been around the technical advancements needed to unite the two platforms. You could take a look at entertainment lawyer Brandon Blake, from Blake & Wang P.A., looks in more depth at the united offering.                                              Brandon Blake Technical Advancements While few viewers are likely to know (or care, frankly) about the backstage technology that powers their viewing experience, Disney executives have been keen to hammer home the potential for happier, healthier subscriber engagement and retention with the new tech shift. They have gone as far as to call it the “most extensive technical advancement” since launch. At this point, it is clear that they are also hoping a more advertiser-appealing platform with better metrics can be leveraged to boost their highly su
Read more