Paramount (CBS) likely Takeover Target including RBC

[4th&long]

https://www.hollywoodreporter.com/busin ... 235728258/

>> Stock in Paramount Global Pops on Takeover Speculation

Shares in the studio jumped by over 13 percent on Wall Street chatter around Skydance Media and RedBird Capital possibly courting a deal with controlling shareholder Shari Redstone.
~
Wells Fargo analyst Steven Cahall sees odds-on chances that a bilateral deal with National Amusements gets done, with big implications for studio asset sales and continuing industry consolidation.

“Over the years we’ve witnessed Skydance grow from a co-producer on the Paramount lot focused on sci-fi/action to a diversified studio incl. animation, sports and a portfolio of big-budget films and original series. We think founder David Ellison has the gravitas to court NAI alongside the deal-making expertise of RedBird,” Cahall wrote in a Dec. 8 investors note.
~
And on the TV media and streaming fronts, Cahall sees the possible shuttering of loss-making Paramount+ and selling off of PlutoTV and a host of the linear TV channels.<<

All these media companies have been in decline as their scripted show programming has severally suffered. Whether by serialization, 'going woke', poor writing or just a total lack of imagination. With no other assets outside a movie studio, Paramount Market Value is only $10-15 billion. The Sharks are out.

BUT The big issue here is does a possible RBC involved acquisition suck the oxygen out of the XFL? This is serious big deal for RBC and is the XFL a distraction? Will they cut bait on XFL and focus on this deal? The timing could not be worse in that regard. Not that CBS couldn't use the XFL programming but this deal could consumer resources and attention. I certainly hop this doesn't impact spring FB negatively.

[GDAWG]

I can't see CBS wanting Spring Football....at least not yet. They got burned by the AAF, so they might be reluctant to get back into spring football and if they do, they will air Spring Football on the little watched CBS Sports Network.

[GDAWG]

https://www.hollywoodreporter.com/busin ... 235728258/

>> Stock in Paramount Global Pops on Takeover Speculation

Shares in the studio jumped by over 13 percent on Wall Street chatter around Skydance Media and RedBird Capital possibly courting a deal with controlling shareholder Shari Redstone.
~
Wells Fargo analyst Steven Cahall sees odds-on chances that a bilateral deal with National Amusements gets done, with big implications for studio asset sales and continuing industry consolidation.

“Over the years we’ve witnessed Skydance grow from a co-producer on the Paramount lot focused on sci-fi/action to a diversified studio incl. animation, sports and a portfolio of big-budget films and original series. We think founder David Ellison has the gravitas to court NAI alongside the deal-making expertise of RedBird,” Cahall wrote in a Dec. 8 investors note.
~
And on the TV media and streaming fronts, Cahall sees the possible shuttering of loss-making Paramount+ and selling off of PlutoTV and a host of the linear TV channels.<<

All these media companies have been in decline as their scripted show programming has severally suffered. Whether by serialization, 'going woke', poor writing or just a total lack of imagination. With no other assets outside a movie studio, Paramount Market Value is only $10-15 billion. The Sharks are out.

BUT The big issue here is does a possible RBC involved acquisition suck the oxygen out of the XFL? This is serious big deal for RBC and is the XFL a distraction? Will they cut bait on XFL and focus on this deal? The timing could not be worse in that regard. Not that CBS couldn't use the XFL programming but this deal could consumer resources and attention. I certainly hop this doesn't impact spring FB negatively.

Sigh.....the last thing we need in these forums is to get into a political debate. Do not do this. We talk spring football. No politics should be allowed.

[laxtreme56]

I take this as good news. Either the new league might find a new landing spot with CBS, and/or Redbird will have another source of revenue which could help offset the XFL/USFL/UFL losses.

[4th&long]

I take this as good news. Either the new league might find a new landing spot with CBS, and/or Redbird will have another source of revenue which could help offset the XFL/USFL/UFL losses.

And it could be good news... but its a huge undertaking, should they move forward, and risk.. Its a gamble unless its basically a take over to sell off the parts, which Paramount could do themselves, so not sure if this gains traction. All I'm saying is it could be a major distraction for RBC if it moves forward. It would likely be his biggest acquisition and their focus and resources may shift (ie away from XFL). Hopefully not, but its possible.

Its a least something to keep an eye on. Disney at least has backed away from talk of selling off ABC/FX etc.. on another media front.

[GDAWG]

CBS Sports airs Italian Serie A, RBC owns one of the premiere teams in Serie A, AC Milan as part of American takeover of European Soccer (which is getting pushback from European fans).

[johnnyangryfuzzball]

https://www.hollywoodreporter.com/busin ... 235728258/
And on the TV media and streaming fronts, Cahall sees the possible shuttering of loss-making Paramount+ and selling off of PlutoTV and a host of the linear TV channels.<<

All these media companies have been in decline as their scripted show programming has severally suffered. Whether by serialization, 'going woke', poor writing or just a total lack of imagination. With no other assets outside a movie studio, Paramount Market Value is only $10-15 billion. The Sharks are out.

BUT The big issue here is does a possible RBC involved acquisition suck the oxygen out of the XFL? This is serious big deal for RBC and is the XFL a distraction? Will they cut bait on XFL and focus on this deal? The timing could not be worse in that regard. Not that CBS couldn't use the XFL programming but this deal could consumer resources and attention. I certainly hop this doesn't impact spring FB negatively.

First off, if Cahall thinks Paramount is going to completely abandon its streaming platforms, he's nuts. Pluto is the market leader in FAST (free ad-supported TV), in part because it has a huge library—back in the 70s, it became illegal for the networks to syndicate their own shows, so all three spun off a good chunk of their libraries as separate companies, and by the time it was made legal again in the 90s, CBS's parent companies bought all three syndicators. That's why CBS owns Star Trek (an NBC show) and shows like Happy Days and Laverne & Shirley that were on ABC. The only other major competitor with that kind of archival library is Warner Bros. They license most of their archive to Tubi, which is Fox's FAST service, which is almost as popular as Pluto, though it has more of an emphasis on on-demand. Reruns are huge business in the 2020s, given that contemporary shows have been dealing with strikes and—I wouldn't call it "woke," per se, as that is much more of an active, accusatory mindset that most networks aren't going to embrace—but political correctness taken to its extreme at the expense of knowing the audience and building a good story. Pluto is making good ad money for Paramount through the licensing of that library.

Second, the $10-15 billion that Paramount is worth is about the same as Fox Corporation, and their reorganization didn't stop Fox from investing in the USFL. If anything, market trends toward live sports would make the XFL (or whatever its merger with the USFL ends up being) an ideal programming target. As I noted, once March Madness ends, CBS has very little in the spring and summer, other than golf.

One other note: the Redstones inherited their controlling stake in Paramount from Sumner, who died a few years ago. It's only natural that they're looking to offload their stock; they didn't buy it to begin with.

[4th&long]

https://www.hollywoodreporter.com/busin ... 235728258/
And on the TV media and streaming fronts, Cahall sees the possible shuttering of loss-making Paramount+ and selling off of PlutoTV and a host of the linear TV channels.<<

All these media companies have been in decline as their scripted show programming has severally suffered. Whether by serialization, 'going woke', poor writing or just a total lack of imagination. With no other assets outside a movie studio, Paramount Market Value is only $10-15 billion. The Sharks are out.

BUT The big issue here is does a possible RBC involved acquisition suck the oxygen out of the XFL? This is serious big deal for RBC and is the XFL a distraction? Will they cut bait on XFL and focus on this deal? The timing could not be worse in that regard. Not that CBS couldn't use the XFL programming but this deal could consumer resources and attention. I certainly hop this doesn't impact spring FB negatively.

First off, if Cahall thinks Paramount is going to completely abandon its streaming platforms, he's nuts. Pluto is the market leader in FAST (free ad-supported TV), in part because it has a huge library—back in the 70s, it became illegal for the networks to syndicate their own shows, so all three spun off a good chunk of their libraries as separate companies, and by the time it was made legal again in the 90s, CBS's parent companies bought all three syndicators. That's why CBS owns Star Trek (an NBC show) and shows like Happy Days and Laverne & Shirley that were on ABC. The only other major competitor with that kind of archival library is Warner Bros. They license most of their archive to Tubi, which is Fox's FAST service, which is almost as popular as Pluto, though it has more of an emphasis on on-demand. Reruns are huge business in the 2020s, given that contemporary shows have been dealing with strikes and—I wouldn't call it "woke," per se, as that is much more of an active, accusatory mindset that most networks aren't going to embrace—but political correctness taken to its extreme at the expense of knowing the audience and building a good story. Pluto is making good ad money for Paramount through the licensing of that library.

Second, the $10-15 billion that Paramount is worth is about the same as Fox Corporation, and their reorganization didn't stop Fox from investing in the USFL. If anything, market trends toward live sports would make the XFL (or whatever its merger with the USFL ends up being) an ideal programming target. As I noted, once March Madness ends, CBS has very little in the spring and summer, other than golf.

One other note: the Redstones inherited their controlling stake in Paramount from Sumner, who died a few years ago. It's only natural that they're looking to offload their stock; they didn't buy it to begin with.

Good post.

Clearly the Murdochs were the smart ones here, selling out before the crash in valuations (abount $70 billion back a few years now) that pure play media companies experienced. And Actually Fox's Tubi has leapt ahead Pluto for a while now. in streaming size.

https://www.nielsen.com/insights/2023/s ... are-point/

Recall that when Fox sold out its Studio and Cable assets etc to Disney the "new" Fox (the remaining TV assets) had a 3 prong focus: 1- Sports, 2 - News, 3 - Reality TV. All of which have a " realtime " focus and other than Sports are realatively low cost to operate vs scripted TV. Fox was ahead of its time thinking. And while you are correct in valuation vs Paramount Global now, they are way smaller today.

Could a bought out Paramount Global do a similar (or at least along the same lines in spirit) sell off/split? Quite possibly. If PG get bought out they have the control to sell off the Paramount+ streaming service.

Recall Sumner IS a Redstone. The family could have kept it and ran it well like the Murdochs are now (though the day is young and the younger Murdochs could screw that up) but made bad biz decisions. Notice FOX avoided the Streaming crazy (wise) vs Paramount. Ive posted here a long thread over time on Cable v Streaming and knew this was going to be a big flop.

As per my IP above the Sharks are out - RBC is one of them. Smart. Buy low sell off the pieces and make a big profit and operate the cash cow as long as you want. Big media deserves what they get for years of mismanagement. I was looking for a name like Google, Amazon or Apple to buy out CBS but they may get the content they want anyway and avoid scrutiny this way. Its interesting to be sure.

[4th&long]

https://www.ft.com/content/58156a43-f09 ... 4012eb1613

>> In this regard, Paramount has company. Bob Iger, Disney’s chief executive, says its streaming business will finally turn a profit in late 2024, after sinking more than $11bn into it since 2019. Warner Bros Discovery says its streamer, Max, is making some money, but it also lost 700,000 subscribers in the last quarter. NBCUniversal’s Peacock service is expected to lose $3bn this year.

“Something has to happen with the streamers in 2024,” says a veteran media executive. “You can’t have another year with everybody losing a shitload of money like this. The subscale streamers have to merge.” <<

Media companies have totally FUp'd the entire industry. Streaming glorified cable that's cumbersome and not the cost safer that was BS from the beginning.

How it impacts live sports long term we've yet to see full impact.

[mnrlgrey]

This could be great news for the league. Another in-house broadcasting partner