Pierre Hergaut’s Post

The business of television and streaming has been in such a state of chaos in the past few years. It’s good to see some decisive action being taken to ring fence and focus - each company becomes more responsible for its own success or failure. It’s also easier to do mergers and acquisitions with cleaner structures. The age of corporation gives away to the age of co-operation? Also entertainment companies now fully leaning into stock market dynamics or so it seems to me. But as with all things, there will be a million “takes” and only time will tell what worked. As with all things execution, talent and capacity are the keys. #comcast #shareholder

Fresh prediction for 2025: Consolidation, Consolidation, Consolidation Since post-COVID boom and bust, it’s been a known fact that many companies are overleveraged with low to no forward-looking return to growth and profitability. The reason? Competiton and more competition. The answer? Less competition. But with lower interests rates and stabilizing economies, do not expect many more business to go under. So the only path available: acquisitions, mergers and for the the brave; IPOs. And with the business friendly administration, activity will be high. Expect a major announcement of acquisition and the like to come every week from here through the end of 2025 Disney kicked off with Fubo today https://lnkd.in/eF7QEgXw

Another Media Mega Merger Goes Sour as Warner and Discovery Plot Breakup - "Warner Bros Basically Admits its Merger with Discovery Did Not Work!" Too many streaming services has been a long-standing problem in the media industry, and not long ago the preferred solution of Wall Street was consolidation. Big media mergers would create powerhouse players with must-have content, the theory went. AT&T made waves with its purchase of Time Warner, only to later sell that business to Discovery. Now the company is reportedly considering unwinding the merger, spinning off the declining cable networks from the Max streaming service, HBO premium network, and Warner Bros. movie studio. This plan is complicated by the fact that the company’s cable channels, while certainly in decline, still generate a lot of cashflow that funds other operations. Simply making the company’s declining assets disappear into a new company may be a bit too good to be true. #freecast #nextgenstreaming #streamingwars #nomoreappdiving https://lnkd.in/eUj3u-eq

Skydance Media (Ellison Family & RedBird Capital Partners) has announced to mergewith Paramount and invests $8 billion to create New Paramount & to acquire National Amusements ($2.4 billion).  The merger price is 48% premium to Paramount Class A share closing price (1/7/24) and 28% premium to Paramount Class B share closing price (1/7/24).  In the transaction, Skydance is valued at $4.75 billion in the merger acquisition, and the newly created New Paramount enterprise value is at $28 billion.  Skydance was founded by David Ellison who is the son of Oracle founder Larry Ellison with $158 billion fortune.  Read - https://lnkd.in/gz29ESF6 follow Caproasia | Driving the future of Asia Skydance Media (Ellison Family & RedBird Capital Partners) has announced to mergewith Paramount and invests $8 billion to create New Paramount & to acquire National Amusements ($2.4 billion).  The merger price is 48% premium to Paramount Class A share closing price (1/7/24) and 28% premium to Paramount Class B share closing price (1/7/24).  In the transaction, Skydance is valued at $4.75 billion in the merger acquisition, and the newly created New Paramount enterprise value is at $28 billion.  Skydance was founded by David Ellison who is the son of Oracle founder Larry Ellison with $158 billion fortune.  Announcement (7/7/24): “Skydance Media (“Skydance”) and Paramount Global (NASDAQ: PARA, PARAA) (“Paramount”) today announced that they have entered into a definitive agreement to form “New Paramount” – a next-generation media and technology leader, through a two-step transaction including the acquisition of National Amusements, Inc. (“NAI”), which holds the controlling share stake in Paramount, and subsequently a merger of Skydance and Paramount Global.  The transaction combines the Skydance Investor Group’s (“Skydance IG”) financial resources, deep operating experience, and expertise in cutting-edge technology with Paramount’s iconic IP, deep film and television library, proven hit-making capabilities, and linear and streaming platforms that reach millions of viewers. New Paramount will be a premier, creative-first destination for storytellers, dedicated to top-quality content and will be positioned to improve profitability, foster stability and independence for creators, and enable more investment in growth areas. Skydance Paramount

From the NYT: The moguls are orchestrating corporate maneuvers that could usher in a sweeping reordering of the media industry in 2025. Among them are the leaders of Warner Bros. Discovery, the parent company of CNN; Comcast, the owner of NBC; and John Malone, the influential investor behind Live Nation Entertainment. In addition, Paramount, the owner of MTV and Nickelodeon, could soon have a new owner in David Ellison, who has access to billions of dollars in capital that could be used to strike additional deals. The starting gun went off in October, when Comcast’s president, Michael Cavanagh, said the company was exploring a spinout of its cable networks, which include Syfy, USA and MSNBC, into a new company. Analysts expect the as-yet-unnamed company to go on a shopping spree, buying up smaller cable networks and peeling off channels from rivals. Mr. Malone, the cable pioneer with stakes in many major #entertainment companies, went next. In November, he replaced his longtime chief executive, Greg Maffei, in tandem with a sale of the broadband business Liberty Broadband and a spin out of @Liberty Lve, a major shareholder in the concert promoter Live Nation. On Thursday, Warner Bros. Discovery announced it was planning to reorganize its company into two big divisions, lumping its traditional TV networks into one group and its streaming and studio businesses into another. “The climate for deal making is going to be really strong in 2025 for a lot of reasons,” said Reed Phillips, the co-founder and chief executive of Oaklins, an investment bank for media, marketing and #technology. “It’s a combination of a good economy, the uncertainty about the election being resolved, and there are a lot of companies that need to show growth again so that they themselves are attractive to investors.” There is no shortage of smaller companies for these media mammoths to scoop up. The decline of traditional cable has created a clutch of small #TV companies trying to navigate the industrywide transition to video #streaming. Those players, including AMC Networks, Hallmark Media and A&E Networks, are potential targets for the likes of Comcast and Warner Bros. Discovery. There are also new players coming onto the scene that are interested in acquiring media companies. Antenna, a media company that owns a stake in the Saudi broadcaster MBC, has been exploring deals for English-language media companies, including The News Movement. Redbird IMI, a #media company backed by the United Arab Emirates and run by the former CNN chief executive Jeff Zucker, recently tried to purchase The Telegraph, the British newspaper. Wall Street bankers have been gearing up for the prospect of a deal spree following the election of Donald J. Trump “It may offer a pace of change and an opportunity for consolidation that may be quite different, that would provide a real positive and accelerated impact on this industry that’s needed,” Mr. Zaslav said.

According to The Drum, Paramount Global’s board of directors on Sunday approved a merger with Skydance Media in a deal valued at almost $8bn. The merger, a mix of stock and cash, marks a significant shift in the media landscape. This merger could revitalize #Paramount, introducing #Skydance Media’s production and multimedia capabilities to bolster the organization’s offerings as the entertainment and media landscape grows more competitive. “Skydance’s David Ellison will inject new life into Paramount by bringing it from the old-school entertainment world into the contemporary universe of Silicon Valley technology,” says Stanlei Bellan, chief strategy officer at omnichannel advertising platform Juice Media. Skydance’s in-house capabilities and relationships across media and technology – which include a deal with Chinese tech giant Tencent and Ellison’s familial ties to Oracle – “have already catapulted Skydance to the forefront of multiple initiatives, like games, software, sports and animation,” Bellan says. Combined with Paramount’s legacy entertainment offerings and established streaming service, new technological prowess will take the organization “to the next level,” Bellan predicts. Read more here: https://lnkd.in/dxxrmEbH

Skydance Media (Ellison Family & RedBird Capital Partners) has announced to mergewith Paramount and invests $8 billion to create New Paramount & to acquire National Amusements ($2.4 billion).  The merger price is 48% premium to Paramount Class A share closing price (1/7/24) and 28% premium to Paramount Class B share closing price (1/7/24).  In the transaction, Skydance is valued at $4.75 billion in the merger acquisition, and the newly created New Paramount enterprise value is at $28 billion.  Skydance was founded by David Ellison who is the son of Oracle founder Larry Ellison with $158 billion fortune.  Read - https://lnkd.in/g-jUb8jq follow Caproasia | Driving the future of Asia Skydance Media (Ellison Family & RedBird Capital Partners) has announced to mergewith Paramount and invests $8 billion to create New Paramount & to acquire National Amusements ($2.4 billion).  The merger price is 48% premium to Paramount Class A share closing price (1/7/24) and 28% premium to Paramount Class B share closing price (1/7/24).  In the transaction, Skydance is valued at $4.75 billion in the merger acquisition, and the newly created New Paramount enterprise value is at $28 billion.  Skydance was founded by David Ellison who is the son of Oracle founder Larry Ellison with $158 billion fortune.  Announcement (7/7/24): “Skydance Media (“Skydance”) and Paramount Global (NASDAQ: PARA, PARAA) (“Paramount”) today announced that they have entered into a definitive agreement to form “New Paramount” – a next-generation media and technology leader, through a two-step transaction including the acquisition of National Amusements, Inc. (“NAI”), which holds the controlling share stake in Paramount, and subsequently a merger of Skydance and Paramount Global.  The transaction combines the Skydance Investor Group’s (“Skydance IG”) financial resources, deep operating experience, and expertise in cutting-edge technology with Paramount’s iconic IP, deep film and television library, proven hit-making capabilities, and linear and streaming platforms that reach millions of viewers. New Paramount will be a premier, creative-first destination for storytellers, dedicated to top-quality content and will be positioned to improve profitability, foster stability and independence for creators, and enable more investment in growth areas. Skydance Paramount

Two #satellite #broadcasting heavyweights call off their proposed merger. DirectTV will no longer join with Echostar's Dish. With pay TV via satellite in a downward trend, TPG will now acquire AT&T's interest in and control of DirectTV. #space https://lnkd.in/esrQQ9SP

Sony and Apollo's $26B Bid for Paramount: A Game-Changer in the Media Landscape 🎥📺 In a stunning move, Sony Group and Apollo Global Management have reportedly made a massive $26 billion all-cash proposal to acquire Paramount Global, the media giant behind iconic brands like CBS and MTV. This offer, which also includes the assumption of Paramount's debt, comes amidst ongoing merger discussions between Paramount and Skydance Media, led by David Ellison. The potential merger with Skydance Media, which would involve buying out the controlling Redstone family at a premium and combining Ellison's company with Paramount, has faced criticism from some Paramount investors who are worried about the dilution of their holdings. As a result, there have been calls for Paramount to explore alternative bids. The Sony-Apollo proposal presents a compelling opportunity for Paramount, as it would provide a significant cash infusion and potentially alleviate concerns surrounding the Skydance merger. However, with Shari Redstone's control over Paramount, the ultimate decision will likely hinge on her vision for the company's future. This development underscores the intense competition and consolidation within the media and entertainment industry, as companies seek to strengthen their positions in an increasingly digital and streaming-centric landscape. The outcome of this bid could have far-reaching implications for the future of Paramount and the broader media sector. If you are in the media industry, what are your thoughts on this potential acquisition? How do you think it would impact the competitive dynamics in the media and entertainment space? 🤔💡 #MediaMergers #SonyApollo #ParamountGlobal #Skydance #EntertainmentIndustry

Consolidation in US #DTH industry - Last chance saloon? "The long-awaited merger between DirecTV and Dish Network appears imminent and could be announced as early as September 30th, according to a report in the WSJ. If an agreement is reached, the result would be the creation of the largest pay-TV operator in the US. Together, the pair would have some 20 million subscribers." The largest #paytv operator in the US is a grandiose but misleading title. It's a market dominated by cord-cutting, and the reaction of the regulators is made clear how they see the change. "A merger between the DirecTV and Dish has been talked about for many years – first mooted in 2001 and turned down then by anti-trust regulators. Today’s broadcasting and streaming market is in a very different landscape and a merger is unlikely to run into regulatory problems." This move is necessary in a market like the US, where DTH is declining at a rapid pace. How much can consolidation prolong the DTH market in the US? It's no longer a question of competing DTH providers, but DTH competing against #streaming. DTH may survive in the US if the DVB-i standard in Europe gets its own US version and standard, and can deliver streaming over satellite, but whether DTH packages and companies like DirecTV & Dish are able to continue in the long term with the dynamics of the US market is an open question. It seems to me more of a question of how long it can go for rather than whether it can survive as a general question, given the dynamics of that market. In Europe, Africa, Asia and to a lesser extent Latin America, it's a different market with different dynamics. #television #tvindustry #satellite #usa #market #mergerandacquisitions https://lnkd.in/ecxF8tMs