No Spin-Off Ahead for Paramount Assets

With the dust finally settling on the turbulent Paramount-Skydance merger, the now-merged companies do not seem keen on another rising entertainment trend- spinning off their cable networks. However, it seems they will be focusing mostly on their streaming potential. We have Brandon Blake, the best entertainment attorney in Los Angeles at Blake & Wang P.A., with the full story.

 

                                                                          Brandon Blake

 

No Spin Offs Ahead

 

Although we have seen a general move towards spinning off legacy and cable channel networks into stand-alone companies this year, with NBCUniversal and even Warner Bros. looking to lighten their load and modernize their business models, it seems the new Paramount leadership is not on board with this move. For now, at least.

 

The question of what to do with cable assets, now that the market has seen significant contraction, has been occupying much of Hollywood in recent years. However, the Chairman of TV Media for the newly merged company, George Cheeks, was quick to note that the broadcast network and Paramount’s existing cable assets will be brought under his banner, with no plans for a sell-off or split in place.

 

Changing Business Model

 

Paramount certainly has an impressive portfolio of franchises to buoy its remaining cable channels, including South Park and The Daily Show alongside classics like Yellowstone and iconic childhood franchise SpongeBob SquarePants. This may give them more buoyancy and appeal among remaining cable subscribers than some other Hollywood giants can offer.

                              

However, they are still planning for a streaming-driven future for the company as well, seeing the linear channels as something to rebrand and remarket, rather than close down and divest. In fact, David Ellison himself, now CEO of the merged company, stated that he intends to keep the company intact, as it was purchased.

 

Will this turn against the tide work well for them? It certainly has potential, as the broadcast market, despite its shrinkage as streaming eats into market share, still has a loyal base, and we have likely seen the peak, or close to it, for cable losses. This will be an interesting strategy to watch as the company settles into its new structure post-merger.

 

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