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The proposed spinoff of SpinCo continues to spark speculation about its potential outcomes, with Variety contributing to the conversation by highlighting potential buyers—particularly the possibility of private equity firms acquiring Comcast 's cable channels. SpinCo presents a unique value proposition. With established cash flows from cable carriage contracts and a portfolio that includes MSNBC , CNBC , and USA Network, it could be an attractive target for #privateequity firms looking to unlock value. These firms excel at #streamlining operations, #consolidating assets, and maximizing returns from sectors still capable of producing predictable revenues in the short term. Alternatively, strategic buyers might see SpinCo as a platform to scale operations, leveraging its "well-capitalized balance sheet" and independence from liabilities that have hampered other media giants. As Variety discusses, SpinCo’s trajectory contributes to broader trends in the media space: disruption, adaptability, and the growing influence of private equity in reshaping legacy markets. Whether SpinCo becomes a buyer, a seller, or a merger catalyst, its next steps could set the tone for consolidation in the pay-TV sector. What’s your outlook? Will private equity dominate this narrative, or are strategic buyers the key to SpinCo’s future? Let’s connect and discuss. #MediaTransformation #PrivateEquity #SpinCo #Comcast #StreamingEvolution

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.

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

Wavve and TVING merger is pending as they are waiting on KT Studio Genie to agree to this deal. SK Square and CJ ENM have already invested 150 billion won and 100 billion won respectively into Wavve to get the ball rolling. https://lnkd.in/gwf-vzit https://lnkd.in/gm3WBePh But SBS, one of the partners in Wavve joint venture and a content provider, just recently made a deal with Netflix. "Following the partnership, SBS’s latest content and existing dramas, variety shows and news shows will be available for Netflix’s subscribers in Korea...The two companies also plan to simultaneously release some of the broadcaster's new dramas worldwide in the second half of next year." https://lnkd.in/gUqke7eX This would then also affect KOCOWA (Wavve's global streaming service), available in parts of North/South Americas, parts of Europe, and Oceania if they are to release new dramas simultaneously. So the question is how aligned are these companies with the decisions? Or are these deals being made without being shared with the relevant teams? #streaming #korea #kdrama

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

Video technology player Brightcove, has entered into a definitive agreement to be acquired by Bending Spoons in an all-cash transaction valued at approximately US$233 million: https://lnkd.in/gTrEJw9i #mergersandacquisitions #techdeals #videostreaming

The merger will have the two businesses form a combined virtual multichannel video programming distributor (MVPD) company that “will operate under the Fubo publicly traded company name,” the companies said.

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

Industry Report Lionsgate's decision to split into two separate publicly traded companies stands in stark contrast how consolidation has plauged the entertainment industry. In recent years, larger media companies have been merging to better compete in a rapidly changing market. Major mergers, such as Warnes Brothers merger with Discovery and Comcast’s merger with NBCUniversal, illustrate the desire for consolidation, where larger conglomerates hope to maximize assets, from film studios to streaming platforms. Lionsgate’s split, however, is a strategic move in the opposite direction. By separating its studio operations from Starz, Lionsgate seeks to create two focused entities that can pursue independent operating strategies. This allows each company to concentrate on its core strengths, with Lionsgate Studios honing its focus on content creation and production, while Starz can zero in on its streaming and television platforms. Moreover, Lionsgate’s decision reflects a growing sentiment among some media companies that splitting operations can create help zero in on the priorities of a media giant. It acknowledges the evolving landscape of entertainment, where companies must be adaptable to new technologies and shifting consumer preferences. While consolidation can offer financial strength, Lionsgate is betting that a more focused strategy will allow its businesses to thrive and potentially offer new avenues for acquisition or merger in the future. This decision underscores the diversity of approaches in the entertainment indusrty, highlighting that consolidation is not the only path to success. https://lnkd.in/eJYKUHGw James (J.T.) Hutchinson Esquire Group Inc.

Comcast spin-off - what does it say for the future of the #tvindustry Comcast announced "plans to spin off most of its linear cable networks into a separate company, including such stalwarts as CNBC, MSNBC, USA Network and SyFy...The resulting SpinCo, as it’s being called for now, would create a company with a more focused makeup, and really crummy long-term prospects, given the continued cord-cutting that has sent cable subscriptions plummeting. It also may become the fulcrum for a roll-up of other cable networks." Is that the case, as the article says, that there are few long-term prospects? It does seem set up for a future merger or acquisition. "The nets are mired on the cable box, their content largely also available on direct-to-consumer streaming services such as Peacock, which Comcast is keeping. The cable nets’ revenue models are built on advertising and carriage fees, both declining alongside those shrinking audiences. And cable distributors, including Comcast, are more focused on higher-growth broadband and wireless opportunities." Indeed, it seems that this is more complicated than the headline suggests "Less clear is how the company manages to extricate its cable operations from the units Comcast plans to retain. For instance, how will NBC News be separated from CNBC and MSNBC operations? And ad sales may also face some complicated disentangling." According to Comcast management, both companies will be set up to be profitable and go on the offense. But what exactly is offense for the cable networks? Will they move more and more to streaming? How does that work if their services are on Peacock, which stays under Comcast? It all seems that this merger has more questions than answers at the moment. #comcast #mediaindustry #media #mergeracquisition #streamingmedia