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Skydance Media is exploring the possibility of an all-cash bid to acquire control of Paramount Global (PARA), specifically the purchase of a majority stake in Paramount’s parent company, National Amusements. It is reported that they are trying. The media landscape could look different in his 2024, with multiple changes being made at companies like Disney (DIS) and Warner Bros. Discovery (WBD).
Puck Entertainment founding partner and journalist Matt Belloni has joined Yahoo Finance to provide insight into the current state of the entertainment industry and what’s next.
Mr. Belloni asserts. “The entertainment industry is entering a year of contraction and consolidation. There has been an incredible leap forward over the past decade as streaming video has challenged linear television as the dominant delivery mechanism, and both have flourished. “We’re a very robust economic ecosystem for content.”
For more expert insights and the latest market trends, click here to watch the full episode of Yahoo Finance Live.
Editor’s note: This article was written by Nicholas Jacobino
video transcript
[AUDIO LOGO]
Jared Breichle: Skydance is reportedly considering an all-cash bid for control of Paramount. David Ellison’s production company and its investors are considering buying a majority stake in Paramount’s parent company, National Amusements. To learn more about the potential deal and the media landscape we see in 2024, we speak with Pack founding partner and entertainment journalist Matt Belloni. Thanks for joining us today, Matt.
Please tell me the overall picture. We have seen the media shaken up on a regular basis. It’s almost like a cycle. I’m not saying you should set your clock to it, but we’ve seen a lot of people over the years. What do these recent developments mean?
Matt Belloni: Well, I think we’re entering a year of downsizing and consolidation in the entertainment industry. The past decade has seen incredible advances as streaming video challenges linear television as the dominant delivery mechanism. And when both were thriving, we had a very robust economic ecosystem for content.
Right now, we’re seeing the linear TV market really decline faster than anyone thought. And the streaming video situation isn’t profitable for any company other than Netflix and Apple and Amazon, which are technology companies that don’t really need to make a profit. So we’re seeing a major correction in Hollywood’s content ecosystem right now.
Josh Lipton: Matt, let’s dig into the specific names here. I would like to hear your opinion about Paramount Global. I mean, Matt, you saw all the headlines here. So many headlines, so many personalities, Matt, how do you think things will change in 2024?
Is it Warner Brothers? Is it skydance? Please help us think it through.
Matt Belloni: Yes, I mean, 20 years ago, our predecessor Viacom was the largest media company in the world. And slowly over the past 20 years, through the decline of the cable television industry in which Viacom had invested heavily, the company’s mismanagement, and the decline of its founder Sumner Redstone, Viacom has now become one of the smallest companies in the world. We recognize that we are the most disadvantaged because of our size. of traditional media companies.
And now the vultures are coming out. Ellison’s bid is being made in conjunction with Redbird Capital and Tencent, who are currently looking inside Paramount. It’s almost here. And they’re going to see if it’s worth making a bid for.
They want to get in through National Amusements because National Amusements controls 77% of Paramount Global’s voting rights. So they think that if they can get control of the national recreational facilities, they can also control the best facilities. It could then merge with Skydance, take over the studio, and figure out what to do with its declining cable TV assets.
But there are others. Warner Discovery gave a talk. I really don’t think it can be helped. That’s because when news of the talks leaked, both companies’ stock prices fell, meaning the market didn’t like the deal. But there may be other Paramount companies out there that we don’t know about. Or maybe you’re just starting to sell parts.
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