Shari Redstone, the president of National Amusements and controlling shareholder of Paramount Global, has expressed her openness to a potential merger or selling the company if the right price is offered. Despite being open to deals for several years, Paramount Global has struggled to find the perfect match due to challenging market conditions and the shifting media landscape.
Paramount Global is a conglomerate that comprises Paramount Pictures, the CBS broadcast network, streaming service Paramount+, and various other valuable assets. While the company possesses a strong content library and sports rights, it has been facing losses from its streaming service.
Unfortunately, these difficulties have taken a toll on Paramount Global’s market capitalization, which now stands at its lowest point since the 2019 merger between CBS and Viacom, reaching only $7.7 billion. To turn the tide, executives at Paramount Global are hopeful that large technology companies like Apple, Amazon, or Alphabet will see the potential to enhance their content offerings by acquiring the company’s assets.
While there is a possibility of breaking up the company and selling off legacy media assets to a private equity firm, the current diminished market valuation and rising interest rates make a leveraged buyout less enticing.
Alternatively, Redstone could explore the option of merging or selling to another legacy media company. However, recent history has shown that big media mergers have not always resulted in success for shareholders.
If a satisfactory deal fails to materialize, Redstone might consider selling National Amusements, the holding company that owns the bulk of Paramount Global’s voting shares. It is important to note that at this time, Paramount Global is not actively working with an investment bank on a sale and is waiting for a shift in market conditions or regulatory officials before pursuing a transformational deal.
Overall, Shari Redstone’s willingness to consider a merger or sale highlights the challenges faced by Paramount Global in a rapidly evolving media landscape. As the company seeks the right opportunity to maximize its assets and overcome recent setbacks, the future of Paramount Global remains uncertain.
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