WeeTracker’s Post

How much is the control premium of an iconic public company worth? Public stockholders of Paramount Global (owner of the CBS, Viacom and Paramount Pictures) are about to find out. Paramount’s non-voting B shares are now trading at a price of less than 50% of that of the voting A class shares. The A shares control just under 80% of the vote while having less than a 10% economic interest in the company. The Redstone family owns 80% of the A shares through its wholly-owned family holding company, National Amusements, one of the largest motion picture chains in the world. Skydance, a media conglomerate, has offered to buy National Amusements and then merge with Paramount. Meanwhile, Apollo Global Management has made an all-cash offer for Paramount alone. How much of the Paramount control premium, if any, will the Redstone’s try to “hide” in the price for National Amusements? Fascinating! Read on…..#familybusiness #fiduciaryduty #controlpremium #mariogabbelli

Paramount's leadership team, known as Office of the CEO, has laid out a strategic plan to fuel profitability and reduce $14.6 billion long-term debt. The Office of the CEO comprises of CBS CEO George Cheeks, Paramount Media Networks CEO Chris McCarthy and Paramount Pictures CEO Brian Robbins. It was formed after the resignation of former CEO Bob Bakish in April. The newly revealed plan focuses on exploring joint venture opportunities with other media companies, reducing $500 million in non-content costs, and divesting assets. "Our plan looks forward by building back the best of Paramount, delivering higher revenue with lower costs, which translates to higher earnings and better returns," Robbins claimed. "We will be thoughtful in how we deploy capital, with our world class content always being the first priority. That's the way we can maximize shareholder value and return Paramount to delivering consistent earnings growth." read more....👇 #rttnews #rttnewsbusinessupdates #paramountskydancedeal #paramounttakeoverdeals #paramountacquisitiondeals #paramountrestructuringplan #bobbakish #shariredstone #chrismccarthy #georgecheeks

💰Paramount could acquire Skydance in an all-stock transaction valued at around $5 billion💰 Here's what you need to know👇 👉 Paramount Global now is in the final few weeks of its most recent carriage agreement with Charter Communications, the nation’s second largest cable operator behind Comcast. 👉 The two companies are in renewal discussions, the outcome of which will have significant influence on Paramount’s ability to deliver the free cash flow that media investors are expecting from the company that has lately posted big losses on streaming operations - a nearly $1 billion write-down in Q1 earnings to adjust for the diminished value of programming on its books as well as in restructuring costs ($200 million). 👉 The company’s traditional cable staples like MTV, VH1, Nickelodeon, BET, Comedy Central and CMT are struggling like other traditional cable brands amid the industry’s transition to streaming. 👉 With so much speculation surrounding the embattled networks & beloved subsidiaries, Paramount Global took a big step toward striking a complicated sale pact with David Ellison’s Skydance Media. The companies earlier this week agreed to an exclusive 30-day negotiating window on April 3. If this next part gets confusing, you're not alone! 👉 The The Wall Street Journal reported that the proposed deal "...would see Skydance acquire Shari Redstone’s holding company National Amusements Inc., which holds her controlling interest in Paramount Global. Paramount Global would then acquire the enlarged Skydance Media in an all-stock deal that would value Skydance at $5 billion. Redstone would wind up with $2 billion from the Skydance-NAI transaction, which would buy out her preferred shares that amount to about 77% of voting shares and 10% of the economic value of Paramount Global shares." 🤯 Lots of moving parts to keep track of but the general sentiment suggests that if the deal goes through, Paramount shareholders will likely be left with a ridiculously dilutive outcome while ownership will be cementing their legacies and tarnishing a storied Hollywood brand. 🤯 👉 The casual reader may not realize that Paramount and Skydance have worked together for 10-plus years already & have partnered to produce projects like “Mission: Impossible” and “Transformers” franchise movies as well as 2022’s “Top Gun: Maverick.” 👉 So there's some lasting goodwill & standing precedence for the deal to get done within the next 30 days but at this point in time, the deal is also very much still up in the air. The consequences of the results could have interesting ramifications around the media landscape worth paying attention to. #media #mediabiz #streaming #cable #hollywood #MandA #finance #content #contentcreators #entertainmentindustry

We announced strong financial results for the first half of 2024: 📈 Our revenues were up 8.6% to more than 2 billion Euros and Adjusted EBITDA was up 12% to €368m. This was driven by an outstanding performance in online sports #betting, reflecting the success of our strategy focused on user experience, as well as a busy sports calendar. 🏆In content production & distribution, we are seeing a solid demand from streamers. We expect to deliver a strong pipeline of scripted shows in H2 2024. 🎮We remained at the forefront of major #liveevents and continued to consolidate the market with The Independents’ recent acquisitions of specialist agencies Kennedy and Sunshine. 🚀 We're on track to meet our 2024 guidance, reflecting continued profitable growth for each business segment. Read more here 👉  https://lnkd.in/e9CCZQBb

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.

It looks like I spoke too early, because the Paramount-Skydance merger talks have officially ended. Paramount Global's stock fell after controlling shareholder Shari Redstone decided to terminate the potential $8 billion deal with Skydance Media. The decision comes after vast negotiations and a detailed evaluation of the proposals on the table. The abrupt end to the Skydance deal caused Paramount's stock to drop significantly, reflecting investor disappointment and market volatility. Led by David Ellison, the deal with Skydance was initially seen as a strategic move that would rejuvenate Paramount by combining its resources and experience with those of a proven production powerhouse. However, Redstone and Paramount's special committee faced multiple challenges, including disagreements over the deal's terms and concerns about regulatory hurdles. Ultimately, the deal's downfall reflects deeper uncertainties about the company's future direction and strategic priorities. Investors are now closely watching Paramount’s next steps. The company still faces the challenge of finding a viable path forward amid ongoing industry consolidation and fierce competition in both traditional and streaming media. Paramount's leadership must now reassess its strategy to restore investor confidence and chart a course that leverages its diverse assets and rich content library. Stay tuned as this story develops and Paramount navigates its next moves in the ever-evolving media landscape. #Paramount #Skydance #ParamountGlobal #SkydanceMedia #ShariRedstone #DavidEllison #Merger #MediaIndustry #StockMarket #BusinessNews

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.

DirecTV and Dish are reportedly in advanced talks to merge, potentially creating the largest U.S. pay-TV provider with around 20 million subscribers. Sources suggest that an announcement of the deal could be imminent, with both parties still finalizing the details of the merger structure. Previous attempts at merging faced antitrust concerns, but the shift towards streaming services might pave the way for a smoother process this time (BLOOMBERG NEWS, 9/26). If the merger goes ahead, AT&T and TPG, the owners of DirecTV, could significantly reduce costs, while Dish's parent company, Echostar, stands to benefit from a vital lifeline amid upcoming debt obligations (WALL STREET JOURNAL, 9/26). Dave: This potential merger could present a positive opportunity for regional sports networks if Dish resumes carrying them.