Paramount Global’s ouster of CEO Bob Bakish did not reassure investors that there’s a favorable exit in store for the media conglomerate.
Shares of the company were down more than 4% in trading Tuesday morning to under $12/share, after Bakish’s exit was officially announced and he was replaced by three senior execs tasked with running Paramount Global — for now, anyway.
Wall Street analysts said the dismissal of Bakish, who was said to oppose Paramount Global’s prospective merger with David Ellison’s Skydance Media, along with the company’s refusal to take questions during its first-quarter 2024 earnings call Monday was evidence that an M&a deal is nearing. Paramount’s Q1 results were decent, as the company boosted Paramount+ streaming subs to more than 71 million and significantly narrowed streaming losses, while its TV group saw revenue up 1% thanks largely to the Super Bowl on CBS. But the financial results...
Shares of the company were down more than 4% in trading Tuesday morning to under $12/share, after Bakish’s exit was officially announced and he was replaced by three senior execs tasked with running Paramount Global — for now, anyway.
Wall Street analysts said the dismissal of Bakish, who was said to oppose Paramount Global’s prospective merger with David Ellison’s Skydance Media, along with the company’s refusal to take questions during its first-quarter 2024 earnings call Monday was evidence that an M&a deal is nearing. Paramount’s Q1 results were decent, as the company boosted Paramount+ streaming subs to more than 71 million and significantly narrowed streaming losses, while its TV group saw revenue up 1% thanks largely to the Super Bowl on CBS. But the financial results...
- 4/30/2024
- by Todd Spangler
- Variety Film + TV
Updated with details of revised Skydance offer: Deadline has learned that Skydance’s offer for Paramount, said to be its last and final, includes a sweetened $3 billion cash in injection — up by at least $1 billion contemplated previously. That’s key as a priority is Paramount holding enough cash on its balance sheet for an investment grade status with big ratings agencies.
The deal also includes a premium sweetener for a percentage of non-voting Class B shares, although details of that aren’t clear. Shari Redstone would take an unspecified haircut compared with the initial deal terms, below. Paramount’s all stock acquisition of Skydance, planned as a second step in the transaction, wouldn’t change, with a value remaining at about $5 billion.
It’s not clear what happens to the few other Class A shareholders beyond Redstone, but most, like Mario Gabelli, also hold B shares. Class A share have...
The deal also includes a premium sweetener for a percentage of non-voting Class B shares, although details of that aren’t clear. Shari Redstone would take an unspecified haircut compared with the initial deal terms, below. Paramount’s all stock acquisition of Skydance, planned as a second step in the transaction, wouldn’t change, with a value remaining at about $5 billion.
It’s not clear what happens to the few other Class A shareholders beyond Redstone, but most, like Mario Gabelli, also hold B shares. Class A share have...
- 4/29/2024
- by Jill Goldsmith
- Deadline Film + TV
The revised offer has been presented to the Paramount board as Skydance tries to gain the approval of company shareholders.
There may not be a need for an investor revolt at Paramount Global to try and stop the company from merging with Skydance Media. Multiple shareholders have raised questions about a plan for Skydance to pay Paramount's controlling shareholder $2 billion for her stake in the company, which caused concern because of its potential to dilute the shares of every other Paramount stakeholder. But a Monday report from Deadline indicates that Skydance has revised its offer for Paramount to make the deal easier to stomach for Paramount’s shareholders not named Redstone.
Key Details: A dividend or stock repurchase had been discussed as a way to satisfy nervous Paramount shareholders in the past. The request for a new offer originated with Redstone’s holding company National Amusements Inc. Paramount’s exclusive...
There may not be a need for an investor revolt at Paramount Global to try and stop the company from merging with Skydance Media. Multiple shareholders have raised questions about a plan for Skydance to pay Paramount's controlling shareholder $2 billion for her stake in the company, which caused concern because of its potential to dilute the shares of every other Paramount stakeholder. But a Monday report from Deadline indicates that Skydance has revised its offer for Paramount to make the deal easier to stomach for Paramount’s shareholders not named Redstone.
Key Details: A dividend or stock repurchase had been discussed as a way to satisfy nervous Paramount shareholders in the past. The request for a new offer originated with Redstone’s holding company National Amusements Inc. Paramount’s exclusive...
- 4/29/2024
- by David Satin
- The Streamable
Reports indicate Bakish could be out as soon as Monday as Paramount continues merger talks with Skydance Media.
Paramount Global has not completed its merger with Skydance Media, but it appears it’s taking the next step in that process. According to multiple reports, Paramount Global CEO Bob Bakish is set to resign from the company under pressure and could see his exit come as early as Monday. Bakish has been sitting in the top chair since 2018 when CBS and Viacom merged into Paramount Global, but his vision for the company’s future is no longer aligned with the goals of its controlling shareholder Shari Redstone.
Key Details: Bakish has been an opponent of the merger with Skydance. Executives at CBS are concerned about what will happen to the company’s TV networks after Bakish’s departure. Skydance CEO David Ellison plans to take the top spot at the new Paramount Global,...
Paramount Global has not completed its merger with Skydance Media, but it appears it’s taking the next step in that process. According to multiple reports, Paramount Global CEO Bob Bakish is set to resign from the company under pressure and could see his exit come as early as Monday. Bakish has been sitting in the top chair since 2018 when CBS and Viacom merged into Paramount Global, but his vision for the company’s future is no longer aligned with the goals of its controlling shareholder Shari Redstone.
Key Details: Bakish has been an opponent of the merger with Skydance. Executives at CBS are concerned about what will happen to the company’s TV networks after Bakish’s departure. Skydance CEO David Ellison plans to take the top spot at the new Paramount Global,...
- 4/29/2024
- by David Satin
- The Streamable
Skydance and Paramount are deep into hashing out a complicated deal that would see the David Ellison’s studio and its backers take control of the storied film and television company owned by Shari Redstone. The exclusive month-long negotiating period through May 3 is likely to be extended perhaps by a few weeks, Deadline hears, given the complexity of the transaction.
The rough contours of a Skydance deal would see a circa $2 billion payout to Redstone for a majority stake in family holding Nai (which controls Paramount though its voting Class A shares) as well as the National Amusements theater chain and associated real estate assets. Step two would see Paramount acquire Skydance in an all-stock deal valued at circa $4-5 billion. That’s being worked on and will likely wind up at the high end of the range.
Skydance’s last capital raise in the fall of 2022, with Kkr as a new investor,...
The rough contours of a Skydance deal would see a circa $2 billion payout to Redstone for a majority stake in family holding Nai (which controls Paramount though its voting Class A shares) as well as the National Amusements theater chain and associated real estate assets. Step two would see Paramount acquire Skydance in an all-stock deal valued at circa $4-5 billion. That’s being worked on and will likely wind up at the high end of the range.
Skydance’s last capital raise in the fall of 2022, with Kkr as a new investor,...
- 4/25/2024
- by Jill Goldsmith and Anthony D'Alessandro
- Deadline Film + TV
Paramount's Second-Largest Shareholder Would Rather See Company Go Unsold Than Approve Skydance Deal
Speaking with the New York Post last week, Wall Street mogul Mario Gabelli said there was “no question” he’d prefer no deal to the Skydance offer.
There aren’t many Paramount shareholders beyond the controlling shareholder Shari Redstone who are enthusiastic about the company’s decision to enter into exclusive negotiations with David Ellison of Skydance Media regarding a merger. A report from the New York Post indicates that Paramount’s second-largest shareholder Mario Gabelli is also against the deal, and in fact would rather Paramount remain unsold than see it be merged or acquired by some other company.
Gabelli said there was “no question I’d rather see no sale” when queried by the Post. His plan is to follow Paramount CEO Bob Bakish’s guidance on keeping the company going, as well as to sell its cable channels to Byron Allen. Allen has already registered a bid for Paramount Global,...
There aren’t many Paramount shareholders beyond the controlling shareholder Shari Redstone who are enthusiastic about the company’s decision to enter into exclusive negotiations with David Ellison of Skydance Media regarding a merger. A report from the New York Post indicates that Paramount’s second-largest shareholder Mario Gabelli is also against the deal, and in fact would rather Paramount remain unsold than see it be merged or acquired by some other company.
Gabelli said there was “no question I’d rather see no sale” when queried by the Post. His plan is to follow Paramount CEO Bob Bakish’s guidance on keeping the company going, as well as to sell its cable channels to Byron Allen. Allen has already registered a bid for Paramount Global,...
- 4/15/2024
- by David Satin
- The Streamable
Updated with stock price. Shares of Paramount Global gave up some gains on Thursday after surging more than 15% yesterday as Skydance chief David Ellison secured pole position to clinch a majority stake of National Amusements.
Led by Shari Redstone, National Amusements operates a movie theater circuit and also controls more than three-quarters of Paramount’s voting shares. A report in Bloomberg just prior to market close said a tentative deal was reached between Ellison, a longtime business partner on film and TV projects with Paramount, and Redstone. There is no deal done. But as Deadline reported earlier today, the two sides are in an exclusive negotiating period. Such an arrangement is only entered into with a framework in place, in the hope of reaching a final agreement.
The two sides have established a 30-day exclusive negotiating window, Deadline has learned, a sign that things are moving forward more decisively after months of speculation.
Led by Shari Redstone, National Amusements operates a movie theater circuit and also controls more than three-quarters of Paramount’s voting shares. A report in Bloomberg just prior to market close said a tentative deal was reached between Ellison, a longtime business partner on film and TV projects with Paramount, and Redstone. There is no deal done. But as Deadline reported earlier today, the two sides are in an exclusive negotiating period. Such an arrangement is only entered into with a framework in place, in the hope of reaching a final agreement.
The two sides have established a 30-day exclusive negotiating window, Deadline has learned, a sign that things are moving forward more decisively after months of speculation.
- 4/3/2024
- by Jill Goldsmith and Dade Hayes
- Deadline Film + TV
Shares of Paramount Global popped in afternoon trade on a report that Apollo Global has made an $11 billion bid for the company’s film and TV studio. The private equity giant has been in and out of the mix of suitors, which also include David Ellison’s Skydance Media and Byron Allen.
The stock heading into market close is up over 11% at $12.48 in heavier than usual volume. That’s still half of where it was a year ago as the company battles streaming losses and high debt. It’s been a takeover target for months now without any deal.
The WSJ cited people familiar with the situation saying the board is reviewing the Apollo offer. Deadline has heard that Ellison has fielded a bid for the whole company but no details. There’s been speculation out there by some industry sources that Larry Ellison would never back a money-losing proposition such as Paramount.
The stock heading into market close is up over 11% at $12.48 in heavier than usual volume. That’s still half of where it was a year ago as the company battles streaming losses and high debt. It’s been a takeover target for months now without any deal.
The WSJ cited people familiar with the situation saying the board is reviewing the Apollo offer. Deadline has heard that Ellison has fielded a bid for the whole company but no details. There’s been speculation out there by some industry sources that Larry Ellison would never back a money-losing proposition such as Paramount.
- 3/20/2024
- by Jill Goldsmith and Anthony D'Alessandro
- Deadline Film + TV
The entertainment company that everyone in Hollywood is talking about is based in a nondescript three-story office building in the Boston suburb of Norwood, Massachusetts.
Nestled between an indoor ice-skating rink and a Home Depot distribution center is the headquarters of National Amusements, Inc., a movie theater operator with 22 cinemas in the U.S., almost all in the New York to Boston corridor.
But it’s not the movie theaters that have investment bankers, media moguls and opportunistic private equity firms salivating. National Amusements, the pride and joy of the media titan Sumner Redstone, and now controlled by his daughter Shari, serves as a holding company for the family’s most precious asset: voting control of Paramount Global, the owner of CBS, Paramount+, Paramount Pictures, Nickelodeon, and other media brands.
Paramount — or at least control of Paramount via National Amusements — now appears to be on the block, with Redstone reportedly...
Nestled between an indoor ice-skating rink and a Home Depot distribution center is the headquarters of National Amusements, Inc., a movie theater operator with 22 cinemas in the U.S., almost all in the New York to Boston corridor.
But it’s not the movie theaters that have investment bankers, media moguls and opportunistic private equity firms salivating. National Amusements, the pride and joy of the media titan Sumner Redstone, and now controlled by his daughter Shari, serves as a holding company for the family’s most precious asset: voting control of Paramount Global, the owner of CBS, Paramount+, Paramount Pictures, Nickelodeon, and other media brands.
Paramount — or at least control of Paramount via National Amusements — now appears to be on the block, with Redstone reportedly...
- 12/15/2023
- by Alex Weprin
- The Hollywood Reporter - Movie News
“Concerning.” “Downside risk.” Wall Street analysts chose unusually worried verbiage in dissecting Paramount Global’s weaker-than-expected first-quarter results and news of a dividend cut on Thursday. “Ouch!” may have been the thought of some company insiders and investors. After all, the hit to the stock was also pronounced. It was down 25.2 percent at $17.12 as of 10:30 a.m. Est after earlier going as low as $17.03, close to its 52-week low of $15.29.
“Paramount missed their first-quarter adjusted (operating income before depreciation and amortization (Oibda) guidance by about 11 percent and cut their dividend, which we take as signs that there is continued estimate risk,” Wells Fargo analyst Steven Cahall, who has an “underweight” rating on the stock with an $11 price target, wrote in a report. While the entertainment conglomerate’s streaming business recorded a wider loss of $511 million in the first quarter, experts called the result roughly in line with estimates.
But...
“Paramount missed their first-quarter adjusted (operating income before depreciation and amortization (Oibda) guidance by about 11 percent and cut their dividend, which we take as signs that there is continued estimate risk,” Wells Fargo analyst Steven Cahall, who has an “underweight” rating on the stock with an $11 price target, wrote in a report. While the entertainment conglomerate’s streaming business recorded a wider loss of $511 million in the first quarter, experts called the result roughly in line with estimates.
But...
- 5/4/2023
- by Georg Szalai
- The Hollywood Reporter - Movie News
The reminders came often from Sumner Redstone, self-made architect of a vast media empire.
“Viacom is me,” he once told Fortune magazine. “I’m Viacom. That marriage is eternal, forever.”
“I’m in control!” he chided Mel Karmazin in a nationally televised news conference as the executive tried to outline his vision for the newly merged Viacom and CBS. “Remember — I’m in control!”
The late Frank Biondi Jr., who engineered a series of key deals in the 1980s and ’90s as Viacom CEO, once acknowledged to the New Yorker‘s Ken Auletta that it could be frustrating toiling in semi-obscurity. “Sumner is the embodiment of this place,” he shrugged.
Redstone, who died Wednesday at age 97, personified more than just a single company. He came to represent a media and entertainment era when deeply flawed, nakedly ambitious, larger-than-life personalities single-handedly set the agenda.
“Sumner Redstone was, for all his business thuggery,...
“Viacom is me,” he once told Fortune magazine. “I’m Viacom. That marriage is eternal, forever.”
“I’m in control!” he chided Mel Karmazin in a nationally televised news conference as the executive tried to outline his vision for the newly merged Viacom and CBS. “Remember — I’m in control!”
The late Frank Biondi Jr., who engineered a series of key deals in the 1980s and ’90s as Viacom CEO, once acknowledged to the New Yorker‘s Ken Auletta that it could be frustrating toiling in semi-obscurity. “Sumner is the embodiment of this place,” he shrugged.
Redstone, who died Wednesday at age 97, personified more than just a single company. He came to represent a media and entertainment era when deeply flawed, nakedly ambitious, larger-than-life personalities single-handedly set the agenda.
“Sumner Redstone was, for all his business thuggery,...
- 8/13/2020
- by Dade Hayes and Jill Goldsmith
- Deadline Film + TV
In today’s film news roundup, Miramax’s owners have sold 49% to ViacomCBS, Imax hires a new investor relations officer and Magnolia is giving early on demand releases to a trio of titles.
Deal Closes
ViacomCBS has closed its previously announced $375 million purchase of 49% of Miramax, giving the conglomerate access to nearly 800 titles including “Pulp Fiction,” “Shakespeare in Love” and “Good Will Hunting.”
BeIN Media Group and ViacomCBS announced the closing on Friday, four months after the deal was announced. BeIN retains a 51% stake in the company, which it acquired in 2016. Miramax’s current leadership team will continue in their existing roles. Bill Block has been CEO since 2017.
Miramax was founded in 1979 by Bob and Harvey Weinstein and sold to the Walt Disney Company in 1993 — by which time, it had transformed the independent film scene by producing such titles as “Sex, Lies, and Videotape” and “The Crying Game.” Miramax’s...
Deal Closes
ViacomCBS has closed its previously announced $375 million purchase of 49% of Miramax, giving the conglomerate access to nearly 800 titles including “Pulp Fiction,” “Shakespeare in Love” and “Good Will Hunting.”
BeIN Media Group and ViacomCBS announced the closing on Friday, four months after the deal was announced. BeIN retains a 51% stake in the company, which it acquired in 2016. Miramax’s current leadership team will continue in their existing roles. Bill Block has been CEO since 2017.
Miramax was founded in 1979 by Bob and Harvey Weinstein and sold to the Walt Disney Company in 1993 — by which time, it had transformed the independent film scene by producing such titles as “Sex, Lies, and Videotape” and “The Crying Game.” Miramax’s...
- 4/3/2020
- by Dave McNary
- Variety Film + TV
Shares of media-industry stocks fell in tandem with an overwhelmingly negative market, which offset enthusiasm for the merger of Viacom and CBS and other parts of the sector.
Shares of Viacom were off $2.49, or 8.52%, in Wednesday trading, down to $26.72 from $29.21. Shares of CBS, meanwhile, were off $4.05, or 8.32%, down to $44.65 from $47.54.
The Dow Jones Industrial Average plummeted Wednesday after investors were spooked by the bond market as well as weak economic data from Germany and China.
During an investor call Tuesday, executives from both CBS and Viacom made their pitch for the power of the combined entity, which would operate the CBS television network, the Showtime pay-cable service, the Paramount movie studio and the Nickelodeon kids-media unit. They suggested the company could capture more revenue from a new emphasis on streaming video, advanced advertising and affiliate revenue.
Wall Street analysts see the rationale for the deal, but have cautioned against too much optimism about it.
Shares of Viacom were off $2.49, or 8.52%, in Wednesday trading, down to $26.72 from $29.21. Shares of CBS, meanwhile, were off $4.05, or 8.32%, down to $44.65 from $47.54.
The Dow Jones Industrial Average plummeted Wednesday after investors were spooked by the bond market as well as weak economic data from Germany and China.
During an investor call Tuesday, executives from both CBS and Viacom made their pitch for the power of the combined entity, which would operate the CBS television network, the Showtime pay-cable service, the Paramount movie studio and the Nickelodeon kids-media unit. They suggested the company could capture more revenue from a new emphasis on streaming video, advanced advertising and affiliate revenue.
Wall Street analysts see the rationale for the deal, but have cautioned against too much optimism about it.
- 8/14/2019
- by Variety Staff
- Variety Film + TV
The ViacomCBS merger news came as a relief to many Tuesday, with some investors and observers tipping their hats to the new company’s prospects and the stocks of both companies ticking up 2% on the news.
But there were also plenty of naysayers, and not all of the blowback was confined to social media.
Todd Juenger, an analyst with Bernstein Research and a longtime Viacom bear, downgraded CBS to “underperform,” lowering his 12-month price target on the shares. “What a shame,” he lamented of the deal, using the phrase as the title of his note to clients. “We believe whatever synergies are produced (we assume $750 million) will pale in comparison to CBS shareholders investing Viacom’s structural problems,” he wrote.
Money the new company invests in direct-to-consumer offerings, he went on, will be “wasted building a product that nobody wants.”
Juenger, it should be noted, did not represent the majority view from Wall Street analysts,...
But there were also plenty of naysayers, and not all of the blowback was confined to social media.
Todd Juenger, an analyst with Bernstein Research and a longtime Viacom bear, downgraded CBS to “underperform,” lowering his 12-month price target on the shares. “What a shame,” he lamented of the deal, using the phrase as the title of his note to clients. “We believe whatever synergies are produced (we assume $750 million) will pale in comparison to CBS shareholders investing Viacom’s structural problems,” he wrote.
Money the new company invests in direct-to-consumer offerings, he went on, will be “wasted building a product that nobody wants.”
Juenger, it should be noted, did not represent the majority view from Wall Street analysts,...
- 8/14/2019
- by Dade Hayes
- Deadline Film + TV
The worst-kept secret in the media business is official: Viacom and CBS Corp. are merging again, with Shari Redstone becoming chair of the combined entity. But will shareholder litigation get in the way?
Upon the announcement, Mario Gabelli, the biggest independent holder of voting stock in the two companies, wasn't happy. He tweeted, "Breach of Fiduciary duties.........lawyers at work."
The history of CBS/Viacom is, in many ways, a tale of corporate and media law.
Viacom exists, in the first place, because the FCC came out with rules in 1970 that forbid television networks from holding interest in companies ...
Upon the announcement, Mario Gabelli, the biggest independent holder of voting stock in the two companies, wasn't happy. He tweeted, "Breach of Fiduciary duties.........lawyers at work."
The history of CBS/Viacom is, in many ways, a tale of corporate and media law.
Viacom exists, in the first place, because the FCC came out with rules in 1970 that forbid television networks from holding interest in companies ...
- 8/13/2019
- The Hollywood Reporter - Film + TV
Investors and media observers are hoping that Viacom and CBS will offer some hint of their progress this week toward a merger when the media companies each report their second quarter earnings on Aug. 8.
The two companies came to a tentative agreement last week about the management structure for the combined entity. Spokespeople for CBS, Viacom and the Redstone family-controlled parent company National Amusements declined to comment on the status of any discussions the boards may be having about the expected merger. The move would recombine the companies after more than a decade apart.
But no matter how rigorous the companies’ preliminary discussions may be, there will be many more challenges to negotiate. Employees at both Viacom and CBS have expressed concern about the potential for layoffs, particularly on the television sides of their businesses. Analyst Michael Nathanson recently estimated a merged Viacom-cbs could find $500 million in cost synergies, but...
The two companies came to a tentative agreement last week about the management structure for the combined entity. Spokespeople for CBS, Viacom and the Redstone family-controlled parent company National Amusements declined to comment on the status of any discussions the boards may be having about the expected merger. The move would recombine the companies after more than a decade apart.
But no matter how rigorous the companies’ preliminary discussions may be, there will be many more challenges to negotiate. Employees at both Viacom and CBS have expressed concern about the potential for layoffs, particularly on the television sides of their businesses. Analyst Michael Nathanson recently estimated a merged Viacom-cbs could find $500 million in cost synergies, but...
- 8/6/2019
- by Brian Steinberg
- Variety Film + TV
Wall Street is watching the legal tug-of-war between CBS Corp. and controlling shareholder Shari Redstone with a mix of amazement and concern about the potential for long-term damage to CBS’ fortunes.
Both sides have accused the other of recklessly disregarding their fiduciary duty to CBS shareholders and the health of the company. CBS shares were down 4% on Thursday after a judge denied CBS’ request for a temporary restraining order against Redstone’s National Amusements Inc. (Nai), the holding company that controls CBS and Viacom.
The spectacle of the legal battle between CBS and Nai has put the brakes, for now, on the merger talks between CBS and Viacom. The opposition of CBS’ board and its chairman-ceo Leslie Moonves to a reunion with Viacom is the crux of the dispute. Redstone has said she sees value in bringing the two companies back together to bulk up at a time of consolidation in media and entertainment.
Both sides have accused the other of recklessly disregarding their fiduciary duty to CBS shareholders and the health of the company. CBS shares were down 4% on Thursday after a judge denied CBS’ request for a temporary restraining order against Redstone’s National Amusements Inc. (Nai), the holding company that controls CBS and Viacom.
The spectacle of the legal battle between CBS and Nai has put the brakes, for now, on the merger talks between CBS and Viacom. The opposition of CBS’ board and its chairman-ceo Leslie Moonves to a reunion with Viacom is the crux of the dispute. Redstone has said she sees value in bringing the two companies back together to bulk up at a time of consolidation in media and entertainment.
- 5/17/2018
- by Cynthia Littleton
- Variety Film + TV
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