Shari Redstone has begun engaging potential buyers regarding selling her stake in Paramount Global – home to CBS, 28 local TV stations, two dozen cable networks and an 111-year-old movie studio – including Skydance Productions led by David Ellison.
Legacy media companies are experiencing declining viewership and advertising sales, and this illustrates their customers’ preference for streaming over traditional content.
Why is she trying to sell Paramount?
Four years after merging Viacom and CBS, Shari Redstone is set to sell what was once one of the world’s most valuable media companies – Paramount. While Disney continues its upward trajectory, Netflix soars forward at breakneck speed and Comcast provides it with cash gushers for NBCUniversal, Paramount has experienced declining fortunes to such an extent that shareholders may become concerned over its debt levels becoming unpayable.
Sources tell Deadline that Redstone has indicated she would consider accepting an attractive offer to sell her 77 percent voting share of National Amusements, the company that holds Paramount Global and contains 28 local TV stations, two dozen cable networks and the 111-year-old movie studio. National Amusements has struggled to adapt to changing viewing habits as audiences migrate away from broadcast and cable television networks towards streaming services and advertising sales are stagnant; selling would liberate significant funds for Redstone and her family while alleviating expenses at National Amusements.
Why is she trying to sell Paramount Global?
Shari Redstone wields enormous power as the controlling shareholder of Paramount Global, the media conglomerate founded by her late father Sumner Redstone and currently owned by National Amusements (the company she controls). National Amusements owns 77% of voting class A shares owned by Paramount.
She has for 10 years protected her family’s empire against potential suitors, successfully repelling attempts by Sydney Holland and Manuela Herzer – two lovers of her father – to take control as well as CBS CEO Les Moonves. Furthermore, she has refused offers from Netflix as well as former employees interested in purchasing pieces of the business.
But as Disney, NBCUniversal and Comcast all expand, Paramount Global’s value has declined sharply in comparison. Paramount+ streaming service is losing money while cable networks’ value decline as less people subscribe to pay TV services. As a result, some investors believe selling the entire company might be best; at least one potential suitor, Skydance Media founder Larry Ellison may take this route.
Why is she trying to sell National Amusements?
She inherited from her father has seen his business rapidly decline in value, with television networks losing viewers and streaming services hemorrhaging money. Her strategy of merging CBS and Viacom into one entity proved futile; as a result, she has made it clear she prefers leaving quietly rather than fighting against current trends.
Paramount may be in an uncertain financial state, but the company still boasts some valuable assets — including its namesake studio, CBS television network and MTV cable networks, its streaming division as well as 28 local television stations.
Private equity firms and David Ellison’s Skydance media company have expressed interest, sources familiar with the matter indicate. But if the Redstone family sells National Amusements, finding an all-inclusive buyer might prove challenging given Paramount CEO Bob Bakish has an employment contract which stipulates a change-in-control severance protection plan – commonly referred to as a golden parachute plan – making him eligible for compensation upon a sale transaction.
Why is she trying to sell Paramount Pictures?
At present, several parties are interested in purchasing parts of Paramount Global, such as its studio and CBS television network, as well as MTV and Nickelodeon cable networks and streaming service; plus its local television stations. Private equity firms Apollo and TPG have long explored media holdings while self-made billionaires like Larry Ellison of Skydance Productions or Annapurna Pictures founders are seeking a stake in entertainment as they look for ways to expand their holdings and make an impressionful statement through entertainment investments.
Redstone has been in talks to sell her controlling stake in National Amusements and its voting stock, including her 77% share in Paramount. Ellison’s company, with which Paramount collaborates on hits like Star Trek and Transformers franchises, is interested in purchasing NAI and merging it with Skydance; however Charter’s carriage deal set to expire next April could complicate matters further. Representatives for Redstone, Ellison and RedBird Capital declined comment, leading National Amusements shares to close up 13% on Friday. National Amusements shares closed up 13% on Friday.
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