A list of potential suitors for Paramount Global was released on Tuesday after Warner Bros. Discovery announced it would no longer pursue merger talks with the struggling media giant, according to reports. Shrunk.
CNN’s parent company, Shari Redstone, struggled for months before making the decision to exit Shari Redstone’s debt-ridden company, CNBC reported, citing sources familiar with the matter. Ta.
Another potential buyer, Skydance Media, the film and television studio run by CEO David Ellison, is interested in a potential deal, two people familiar with the matter told CNBC. The company is still conducting due diligence.
Paramount, which owns assets such as CBS, Paramount+ streaming channels and movie studios, had its credit rating junked last Friday by rating agency S&P, citing low operating cash flow generation due to the continued downturn in cable TV. It has been lowered to a level slightly above its status. and competition in streaming.
This apparently means Comcast, owner of NBCUniversal along with CNBC and the Peacock streaming service, has also paused, indicating it has no interest in acquiring Paramount’s assets, one of the people told the outlet. Told.
Comcast is considering a deal that could include integrating streaming services, people familiar with the matter told CNBC.
The report added that both sides employ advisors and exchange financial information.
Media mogul Byron Allen has submitted a $14 billion bid for Paramount, but Allen is known for stepping into a potential sale without completing the deal.
Earlier this month, Warren Buffett’s Berkshire Hathaway sold a third of its stake in Paramount, and last week Paramount announced plans to lay off about 800 employees, about 3% of its workforce.
Since January 1st, Paramount stock has fallen more than 20%. The company is scheduled to announce its financial results on Wednesday.
Paramount stock, dominated by Redstone’s National Amusement stock, rose slightly on Tuesday.
Warner Bros. Discovery, which owns media that includes ratings-troubled cable news companies CNN and HBO, and the Turner family of cable channels including TNT and TBS, has been battling its own financial troubles.
The company reported a better-than-expected quarterly loss on Friday as the media conglomerate battles a weak advertising market and the fallout from Hollywood’s twin strikes in content generation.
Warner Bros. Discovery’s studio revenue fell 17% in the fourth quarter, barely able to match the success of “Barbie,” which opened in July and topped $1 billion in worldwide ticket sales.
The company is hopeful that the second installment of the sci-fi blockbuster “Dune,” starring Timothée Chalamet and Zendaya, will be released in March.
Due to the Hollywood strike, the release was postponed from November.
Network advertising revenue fell 12% to $1.95 billion, reflecting continued decline in traditional TV viewership and a weaker economic outlook.
Overall sales for the fourth quarter were $10.28 billion, below analysts’ average estimate of $10.35 billion, according to LSEG data.
Excluding items, the company lost 16 cents per share, beating expectations for a loss of 7 cents.
Warner Bros. Discovery announced earlier this month that it has formed a joint venture with Walt Disney Co. and Fox to launch a sports streaming service this fall in a bid to capture younger viewers who are less interested in television.
Meanwhile, the streaming business remained strong.
The segment had 97.7 million customers worldwide at the end of the fourth quarter, including 1.3 million subscribers from the BluTV acquisition.
with post wire
