Media mogul Barry Diller has recently emerged as a potential suitor for Paramount Global. Diller, who is the chairman of IAC, an internet media and publishing company, is exploring the possibility of acquiring National Amusements Inc., the company owned by Shari Redstone and the controlling shareholder of Paramount.
Diller’s IAC has signed a nondisclosure agreement and is currently looking into the data room of National Amusements to gather more information. It is reported that IAC could make a decision in the near future to place a bid on National Amusements, which would ultimately give it a controlling stake in Paramount.
Background on Recent Developments
These discussions have come in the wake of National Amusements ending talks with Skydance regarding a proposed merger with Paramount. The deal, which involved Skydance, RedBird Capital, and KKR, was called off as it awaited signoff from Redstone. National Amusements, controlled by Redstone, holds a significant 77% of class A Paramount shares.
Prior to calling off the proposed merger, National Amusements had agreed to financial terms that would have seen Redstone receive $2 billion for the company. Skydance had also agreed to buy nearly 50% of class B Paramount shares at $15 apiece, amounting to $4.5 billion. Additionally, Skydance and RedBird had planned to inject $1.5 billion in cash to help reduce Paramount’s debt.
Diller’s Involvement and Past Experience
The potential bid from IAC for National Amusements is shrouded in mystery regarding its terms, but it is expected to exceed $2 billion. Diller’s interest in Paramount was first reported by The New York Times. Diller, with a vast experience in the media industry, has previously served as the chairman and CEO of Paramount Pictures in the 1970s and 1980s and later at 20th Century Fox, where he greenlit successful network programs.
Diller has been vocal about legacy media companies like Paramount shifting their focus away from competing with streaming giants like Netflix and instead concentrating on their traditional broadcast and pay-TV networks. He believes that despite the rise of streaming services, traditional pay-TV remains profitable, unlike most streaming businesses. Diller advocates for the revitalization of traditional networks within the legacy media landscape.
The Evolution of Paramount and Current Business Focus
Paramount, under the leadership of the Office of the CEO comprised of George Cheeks, Chris McCarthy, and Brian Robbins, has been undergoing restructuring. The company now includes the movie studio, the CBS broadcast network, cable TV networks like MTV and BET, and streaming services Paramount+ and Pluto. Paramount has been exploring joint venture opportunities in the streaming space, cutting costs significantly, and divesting noncore assets.
The emergence of a new suitor like Barry Diller for Paramount Global signifies potential changes and opportunities for the company’s future. Diller’s interest in acquiring National Amusements and gaining control of Paramount opens up new possibilities in the ever-evolving media landscape. As discussions progress and bids are considered, the outcome of this development could have far-reaching implications for the entertainment industry as a whole.
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