In recent months, Shari Redstone, the non-executive chair and controlling shareholder of Paramount Global, has ramped up discussions with potential buyers expressing interest in acquiring the media conglomerate. The urgency surrounding these talks is fueled by the rapidly evolving media landscape and the challenging trajectory Paramount Global has faced in the wake of the Covid-19 pandemic.
Legacy media companies, including Paramount Global, initially sought growth through launching their streaming services. However, the tides shifted as Wall Street's confidence waned following Netflix's growth stall in 2022. Paramount Global's flagship streaming service, Paramount+, boasts 63 million subscribers but grapples with financial losses, though showing improvement from $343 million a year ago to $238 million in the third quarter.
The public struggle is reflected in Paramount Global's stock performance, with shares plummeting by 56% over the past two years. This downturn has attracted the attention of potential buyers, notably private equity firms and individuals like David Ellison from Skydance Media and media mogul Byron Allen.
Considering the option of going private or selling off assets, including Paramount Pictures, CBS, and popular IPs like "Star Trek" and "SpongeBob SquarePants," emerges as a plausible strategy for Paramount Global's future.
Beyond market dynamics, personal factors also influence Redstone's contemplation of a sale. Her heightened focus on combating antisemitism, particularly following the October 7 Hamas terrorist attack on Israel, has played a role in her decision-making process. Redstone, who actively supports Jewish causes, including her involvement with Combined Jewish Philanthropies, revealed her emotional struggle, stating, "I think there are no words to describe what took place, and all I do every day is try to do something that's going to make a difference and help people" to The Hollywood Reporter in October.
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