Priya Prakash’s Post

Will a new type of 'media mogul' like David Ellison make Paramount fit? We now see the Paramount & Skydance merger really happening, driven by the belief that only the largest players will survive. With David Ellison at the helmet of the combined enterprise, a new kind of leadership comes in: more bold, more tech-savvy, yet also very much in love with movies, good story-telling and appreciative of the creative part of the business. We witness in front of us the scenario that has been depicted in endless Hollywood movies and TV series last couple of years, where a tech scion wants to make it big in entertainment because he has a childhood trauma to overcome involving usually a cartoon hero - and usually fails. But this time it might be different. This time, this very Tech Scion is maybe exactly what an old media moguldom like Paramount needs - and his deep pockets will help with that. Lets briefly look at the typical rationale behind this growth strategy of merger & acquisitions. What are the main drivers? Synergies: Mergers often combine complementary strengths, leading to increased efficiency and innovation. Economies of scale: Larger companies can negotiate better deals with suppliers and distributors, reducing costs. Increased market power: This can lead to higher advertising rates and stronger bargaining power with platforms. Today, one important element is to be added when it comes to media (especially old school media like movie and tv making): you need to merge content with technology. The TV business is now first and foremost a data and technology business. David Ellison brings this tech mind and approach now to Paramount. Will a single person be able to turnaround a mega ship like an old studio? We will see. I am in general sceptical of any 'moguldom', but in this case, I see a good chance that this is maybe exactly the kind of 'boot camp' that is required to make a business like Paramount fit for the future. Because, the future in media belongs not necessarily to the biggest entity but also to the one that is the fittest. Being big, and having a lot of money, helps thought, too ;-) #media #paramount #skydance #merger #tvindustry #tvstrategy

Paramount Global's High-Stakes Corporate Dance: Navigating Acquisitions, Executive Changes, and Asset Sales In a whirlwind of corporate strategy and high finance, Paramount Global (PARA) has become the epicenter of multiple high-profile business moves. The media conglomerate is currently in talks with Sony Pictures Entertainment and Apollo Global Management, Inc. regarding a joint takeover offer valued at $26 billion. This comes amid the recent departure of CEO Bob Bakish and the termination of exclusive negotiations with Skydance Media. Leadership Transition Amidst Strategic Realignments The shake-up at Paramount's top echelon with Bakish stepping down is timely, as the company faces transformative decisions that could redefine its future landscape. The talks, which officially commenced following a board meeting on May 4, signal a potentially pivotal shift for the company amidst the volatile media market landscape. -Analyzing the Implications Robert Fishman, Managing Director at MoffettNathanson LLC, highlighted the uncertainties surrounding these developments. "As an independent shareholder, the multitude of scenarios presents both a whirlwind of possibilities and considerable risks," Fishman commented on Catalysts. The inherent challenges in Paramount's business model and market position add layers of complexity to the ongoing negotiations. -The BET Auction Stalemate Simultaneously, Paramount's auction of the BET Media Group, Inc. has hit a snag. Media mogul Tyler Perry Studios, who holds a significant stake in BET, expressed frustration over the protracted bidding process, with offers reportedly falling short of the $3 billion asking price. This auction is critical as Paramount seeks to alleviate its substantial debt burden, which notably stands at six times its Ebitda. -Strategic Divestitures and Market Reactions The potential divestiture of Simon & Schuster, also up for sale, alongside BET, underscores a strategic attempt to streamline operations and focus on core competencies. The outcomes of these auctions could significantly impact Paramount's financial leverage and its ability to navigate a challenging media environment. As these narratives unfold, the global media landscape watches closely. The interplay of leadership changes, strategic acquisitions, and asset sales at Paramount Global will undoubtedly influence the broader industry dynamics, setting precedents for how media conglomerates tackle financial stress and market evolution. #MediaIndustry #CorporateStrategy #ParamountGlobal #Sony #ApolloGlobalManagement #Leadership #Acquisitions #BETAuction #MediaMarkets

Can replacing a CEO with three interim executives lead to a successful transformation at a time when leadership is key to the company’s future? The recent announcement that Paramount Global will be led by an 'Office of the CEO' composed of three executives who will all assume elements of the CEO position in the interim as part of a leadership committee could be concerning since Paramount is still navigating its upcoming merger. The decision can be perceived as complicating the leadership structure at a critical time. Effective leadership often requires clear, direct accountability, which is challenging to achieve with multiple heads. However, while Paramount continues to navigate its strategic initiatives, particularly the ongoing merger, the office of the CEO could successfully set the stage for a permanent CEO to take the lead. The new CEO office is working with Paramount's board "to develop a comprehensive, long-range plan to accelerate growth and develop popular content, materially streamline operations, strengthen the balance sheet, and continue to optimize the streaming strategy," the company said in a statement. #Paramount #interimleadership #merger Disclosure: This article is for informational purposes only and should not be construed as legal, regulatory, tax, accounting, or investment advice. It expresses the views of the author as of the date indicated and such views are subject to change without notice. Quaestor Consulting Group ("QCG") has no duty or obligation to update the information contained herein. Certain information contained herein is based on or derived from information provided by independent third-party sources. QCG believes that the sources from which such information has been obtained are reliable; however, it has not independently verified the accuracy or completeness of such information or the assumptions on which such information is based. QCG makes no representation, and it should not be assumed, that past investment performance is an indication of future results. Moreover, wherever there is the potential for profit there is also the possibility of loss.

🆕 #TMTnews 🔗 🔝 Skydance Media and Paramount Global agree to deal terms 🤝 Skydance and Paramount have signed a definitive agreement to establish "New Paramount" – a groundbreaking media and technology enterprise. 🌟Key Highlights: - 💵 Major Investment: The Ellison Family and RedBird Capital Partners are investing over $8 BLN into the new entity, acquiring National Amusements, Inc. - 👍 Stockholder Benefits: Class A stockholders to receive $23 per share, and Class B stockholders $15 per share, with a total of $4.5 BLN in cash available to public shareholders. - 👥New Leadership: David Ellison will serve as Chairman and CEO, with Jeff Shell as President. This dynamic team is set to rejuvenate Paramount and CBS brands. - 💡Innovative Vision: New Paramount aims to be a creative-driven hub for storytellers, enhancing content delivery via Paramount+ and Pluto, and revitalizing linear networks CBS and Paramount. - 🎯Strategic Repositioning: The plan includes boosting profitability, stability for creators, and expanding investment in digital platforms. 🔍 Transaction Details: - Skydance to merge with Paramount in an all-stock transaction, valuing Skydance at $4.75 BLN. - Skydance Investor Group to own 100% of New Paramount Class A shares and 69% of Class B shares post-transaction. - The cash election offers a 48% premium to Class B stock and a 28% premium to Class A stock as of July 1, 2024. 🚀Impact and Future Vision: - This merger consolidates financial and technological prowess with Paramount’s iconic IP, ensuring a creative-first, technologically advanced future. - Emphasis on animation, gaming, film, sports, news, and television, with enhanced digital presence. - Promises to preserve the 100-year legacy of Paramount and the cherished CBS brand, securing a prosperous future for the creative community. This merger represents an exciting transformation for the entertainment industry, promising stability, innovation, and growth for Paramount and its stakeholders. #Skydance #ParamountGlobal #NewParamount #MediaInnovation #EntertainmentTransformation #Leadership #Investment #Technology #ContentCreation #Merger

Leadership Shift at Paramount Global Amid Merger Talks Big changes are happening at Paramount Global! Bob Bakish, the CEO who has been at the helm through significant transformations since 2016, is stepping down. This move comes amid ongoing merger discussions with Skydance Media, signaling a new era for the entertainment giant. As we bid farewell to Bakish, Paramount introduces an "Office of the CEO," a novel leadership structure shared among three seasoned executives. This strategic pivot aims to maintain stability and drive growth during this critical transition period. Additionally, Skydance Media, under David Ellison, has proposed a significant investment of $3 billion to support this potential merger, promising to strengthen Paramount's financial footing and stock value. What does this mean for the industry? As merger talks continue, the landscape of entertainment and media may be poised for a profound transformation. Paramount's recent performance, highlighted by strong Q1 earnings, positions it as a formidable player in the evolving market. Stay tuned as this story develops and Paramount charts its course through these changes. #ParamountGlobal #Media #Leadership #MergerTalks #EntertainmentIndustry #linkedinnews

NEWS OF THE DAY! Bold $4.3B Bid: Edgar Bronfman shakes Paramount Future - Edgar Bronfman Jr.’s Move: Edgar Bronfman Jr., an investor and heir to the Seagram fortune, has offered $4.3 billion to buy Shari Redstone’s stakes in Paramount Global and National Amusements Inc. - Timing of the Bid: The bid was made just before a crucial deadline related to Paramount’s planned merger with Skydance Media, which could change the ownership and future direction of the companies. - Impact on Hollywood: If successful, Bronfman’s bid could significantly shift control over one of Hollywood’s major studios and reshape the entertainment industry. - Strategic Positioning: Bronfman’s offer is seen as a strategic move to gain influence in Paramount and potentially affect the outcome of its merger with Skydance. =>Please follow Finplate and stay updated with the latest news. Thanks in advance. To read the news in detail, click below: https://lnkd.in/ebpFdmW9

Redstone will likely sit tight now, pursuing deals that buy her out but don’t involve a merger — cleaner and simpler. Edgar Bronfman Jr. with Bain behind him is exploring an offer, as is producer Steven Paul with some deep-pocketed partners. But she also may not do anything immediately, choosing to pay down debt, raise the company’s value and try to sell it again at a later date and take a shot on the new CEO troika of Brian Robbins, George Cheeks and Chris McCarthy. For in them is the confidence that they’ll do what former Paramount Global CEO Bob Bakish didn’t do: sell off assets such as BET and Showtime. At the annual shareholders meeting last week, Robbins, Cheeks and McCarthy laid out a path to divest non-core assets, unlock the value of content and possibly find a joint venture partner for streaming service Paramount+. As unorthodox as three chiefs seem, they are seasoned executives and Redstone seems to wants to keep them in place for now.

Will Paramount Global end up looking for a new dance partner, or will Skydance Media get to clinch a deal and celebrate with a victory dance? Our Funds Editor, Tom Cane, shared insights on the deal with The Hollywood Reporter, suggesting that Skydance Media holds a favorable position in negotiations with Paramount Global. However, reaching a mutually beneficial deal may prove challenging due to Paramount's dual-class structure. Tom also highlights Apollo and TPG as potential private equity bidders in the industry's consolidation. The anticipated Paramount sale could spur further M&A activity in the media and entertainment sector, driven by financial pressures and the need to compete with streaming giants like Netflix. Read more here: https://lnkd.in/eWcVQr99

🆕 #TMTnews 📽 📸 Thanks to exclusive reporting by The Wall Street Journal, we know have a better picture of Skydance financials and their proposed acquisition of Paramount global. 🔍 According to the WSJ, Skydance projects to more than double its revenue and triple its adjusted earnings in the coming years. With a projected revenue of over $1 BLN in 2024 and a staggering surge to $2.29 BLN in 2025. 📈 Under the proposed merger, Skydance's backers would acquire control of Paramount, followed by Paramount acquiring Skydance in a $5 BLN, all-stock transaction. The valuation of Skydance in this deal reflects its robust growth trajectory, with a projected 15.5 times its 2025 adjusted earnings. Moreover, Skydance anticipates continued growth in 2026, with revenue expected to increase by an additional 10% and profits by over 30%. 💡 This potential merger marks a departure from traditional media transactions, signaling a new era of #innovation and #growth. Skydance's vision of being a growth catalyst for Paramount's assets underscores its commitment to reshaping the entertainment landscape. #SkydanceMedia #ParamountGlobal #EntertainmentIndustry #MergerTalks #FutureOfEntertainment https://lnkd.in/enb8_mYa