Wait, Now We’re Talking Roku and Paramount?
Roku may be entering the Paramount arena, in a
move precisely no one saw coming. It’s certainly a novel strategy — how do you
take out 2 of your competitors in one? Buy the whole company! It’s not like
bids for the ailing Paramount Group have been easy to find, after all. Blake
& Wang P.A. entertainment attorney Brandon Blake has more on this
interesting new development.
It Started with Fubo
Fubo was first mentioned as
having an interest in the Paramount Group back when the protracted negotiations
first began. It seems they’re not quite willing to let go of that hope, for all
the Skydance Media bid seems set to be the final contender in the Paramount
Race. Edgar Bronfman Jr., wearing his other hat as the Fortress Investment
Private Equity Group, is now set to team up with Roku and Baby Geniuses producer Stevan Paul for one last bid.
Mr Paul’s interest in the
Paramount Group, like that of Fubo, is not news. Where did Roku come from,
however?
An Interesting Proposition
While unexpected, it does
have some sense to it. Paramount+ is already offered as a Roku channel, and
both have ties to Walmart+ membership. Roku, of course, is the OS of choice for
Walmart’s own smart TV brand. While Roku is most associated with its streaming
sticks, 85% of its revenue comes from streaming app distribution and
advertising. With some thriving originals and a strong, if generally silent,
market presence, it makes sense that they may be ready to branch out to better
things. They would also bring a tech-forward partnership to the table. Sad as
it is for a key part of the Hollywood legacy, Roku is now outperforming the
Paramount Group on the stock market, too. By market cap, at least.
While the Skydance bid is almost finalized, they are currently in
a 45-day go-shop period in which other interested companies have a last chance
to beat the current offer. This closes on Wednesday.
Will there be a last-minute shakeup (again)? For now, we have a tense 11th-hour standoff. From here, who knows with this disruptive deal? However, this is certainly an interesting new spoke in the deal wheel.
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