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Update: Parmount and Skydance Media enter "exclusive" merger discussions


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VARIETY.COM

Private-equity firm Apollo Global Management reportedly has submitted an $11 billion bid to acquire Paramount Pictures.

 

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Apollo Global Management, a major private-equity firm, has submitted an $11 billion bid to acquire Paramount Pictures, according to a published report.

 

The Wall Street Journal, citing anonymous sources, reported that Apollo Global offered $11 billion for Paramount Global’s film and TV studio business. That would apparently not include CBS, Paramount Global’s cable networks like BET, Comedy Central, Nickelodeon and MTV, or the streaming business unit that includes Paramount+ and Pluto TV.

 

It’s unclear how the math of Apollo’s reported offer for Paramount Pictures works out, as that price tag is greater than the market capitalization of Paramount Global in its entirety ($7.3 billion as of March 19). Shares of Paramount Global closed up 11.8% Wednesday on the Journal report, to $12.51/per share, boosting its market cap to nearly $8.7 billion. The stock remains well below its 52-week high of $24/share.

 

 

That seems like an absolutely ludicrous amount of money for solely the movie/TV studio.

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Well it took more than a month for the monkey pawing to happen at least.

On 2/16/2024 at 1:41 PM, Jason said:

I wonder how long until it takes until I'm monkey pawing that comment. 

On 2/16/2024 at 1:40 PM, Jason said:

I suppose anything is better than Zaslav getting his hands on Paramount.

 

On 2/16/2024 at 2:00 PM, Kal-El814 said:

Probably already took place between those 2 posts.

 

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A confounding number that seems to go against the conventional wisdom both old and new. If you thought that streaming was doomed and that old school media would remain valuable and profitable, you'd want to include CBS and the cable channels. If you thought streaming was the future, obviously you'd want the streaming units. I don't understand where they see the value in owning Paramount Pictures if you don't think there's money in either broadcast or streaming.

 

Given the inflated valuation and that they don't want to make money showing Paramount's content to consumers themselves, either they think they can be much more profitable making content and licensing it all out to whatever platforms want to pay for it, or they think they can carve up Paramount IP for parts. It makes me think someone read these recent reports about Disney's ROI on Marvel and Star Wars and decided that they could do that for Transformers, Star Trek, Top Gun, Mission Impossible, and whatever other random IP Paramount still owns.

 

The idea that they're offering what seems to be a crazy premium makes me think they have a plan that is probably unpalatable to Paramount, but with a sufficiently big number Paramount has to seriously consider the sale.

  • Halal 2
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  • 2 weeks later...
FINANCE.YAHOO.COM

(Bloomberg) -- Paramount Global’s debt rating was cut to junk by S&P Global Ratings, which cited pressure on cash flow because of the continued decline in the company’s broadcast and cable TV business.Most Read from BloombergBiden Gains Ground Against Trump in Six Key States, Poll ShowsLondon Insurers Face Baltimore Bridge Payouts Worth BillionsJapan Amps Up Intervention Threat as Yen Hits Lowest Since...

 

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15 minutes ago, Commissar SFLUFAN said:

I really, really don't see how the linear TV outlets (the CBS network, the cable channels) can possibly survive as independent entities.


maybe there is a separate deal in the works to sell them to likes of Amazon or a different equity firm.  

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The most likely final outcome of this deal is one where the PE firm further splits the assets and sells it off piece by piece to other media companies, so effectively further consolidation even if through a circuitous route. 

 

I still get angry when I think about what Disney did to Fox and the industry as a whole. But X-men in the MCU!!1!1!! (now that the MCU kinda sucks 😬)

  • True 1
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  • Commissar SFLUFAN changed the title to Update: Parmount and Skydance enter "exclusive" merger discussions
VARIETY.COM

Shares of Paramount Global soared after a report that controlling shareholder Shari Redstone reached a tentative agreement to sell her stake to Skydance Media.

 

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Shares of Paramount Global soared 15% Wednesday following a report that Shari Redstone — the company’s controlling shareholder — had reached a tentative agreement to sell her stake to Skydance Media.

 

Bloomberg News, citing anonymous sources, reported that Redstone had come to a tentative agreement to sell her stake in National Amusements Inc. to David Ellison’s Skydance. NAI holds a nearly 80% voting stake in Paramount Global.

 

However, sources told Variety that no agreement, preliminary or otherwise, has been negotiated at this point. Reps for Paramount Global, NAI and Skydance have declined to comment on the M&A talks.

 

 

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  • Commissar SFLUFAN changed the title to Update: Parmount and Skydance Media enter "exclusive" merger discussions

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