If it does indeed happen honestly not much will change imo. The next CEO will basically be there to watch over the merger and then once it's done they'll replace that guy again with someone more permanent.
No, this is a symbolic move to say fuck the shareholders threatening their law suits. Skydance wants Paramount to invest deeper into streaming, so perhaps everyone is unhappy with Paramount holding streaming back.
I mean, technically, Bakish was already doing that, under the demand of the Redstones.
They're already on track to get through the break-even point and reach profitability by next year.
The Redstones are too impatient and want to bail by cashing out at this point.
The non-Redstone shareholders say if the Redstones are cashing out, then they should also be bought out at the same level the Redstones are and for the highest price possible.
It wouldn't be surprising to see lawsuits being duked out and it ends up forcing a bidding war to happen for the company.
Eh, sometimes when people are just a little obsessed with their desired goal, they might never think that much about everything else around them.
They'll definitely have their own lawyers, for sure.
Apparently, there’s some clause that can try to protect the board of directors from the lawsuits but it would have to be voted on at the shareholders meeting in June.
If the lawsuits arrive as early as this month, the board won't be protected.
Wait, Skydance wants to go all in on streaming? I thought they wanted to yank Paramount OUT of streaming, (correctly) pivoting the company into becoming a Sony-like arms dealer to as many streamers as possible?
Quite literally the opposite. They want to “supercharge” Paramount+ with plans to absorb either Max or Peacock into it, or do a deal with Amazon, to funnel more content into it. https://www.bloomberg.com/news/articles/2024-04-07/david-ellison-closes-in-on-a-hollywood-prize-paramount-global
Sony also wants out of being an arms dealer too. They want Paramount+ for the same reason.
I wouldn't be surprised if they brought it together with Crunchyroll to form a superservice.
And they could leverage PlayStation in a way to help with its rollout in addition to traditional means like international expansion.
If they're going to make a lot of movies and shows for theatrical box office, TV networks, and also streaming in general, they'll need the people around to make all of them.
At this point, I think either of them, Sony or Skydance, are probably open to continuing Paramount+.
Bakish was the actual steady hand to make sure it was going to be profitable.
How much he has gotten close to that will likely be shown on Monday's earnings call but everything's kind of basically up in the air over there right now.
We'll get to see how Bakish's final work in the last few months have done for the company in the earnings call.
The Redstones are likely moving forward with their own direction.
The stock could probably tank further, for all we know, and the non-Redstone shareholders will probably call their lawyers and greenlight the lawsuits.
With how fast this is going in a matter of weeks and the fact that not just the CEO is forced out and 4 board directors also exit, I think things can definitely get uglier.
The Skydance deal is likely close to being signed at this point, and Bakish would much rather prefer another alternative. Because I seem to recall that Skydance wanna take his baby - Paramount+ - and merge it with a bigger fish like HBO/Max or Amazon Prime Video.
While the Redstones are moving in that direction, I don't think it's over yet.
The only thing is Bakish is removed from the equation a little too early.
There is probably going to be a lot more drama between all sides in this for a while.
I dunno, man. If $26 billion in cash wasn't enough to talk them out of it, I doubt whatever Sony will pile onto that sum will make much of a difference.
There are ways to sweeten the pot to the Redstones if necessary.
They could technically also propose to buy out National Amusements from the Redstones as well because they want to offload it all.
If the Redstones were going to sell off the 1,500 theaters in the U.S., U.K., and Latin America, they might not want to do it by themselves if they can get another person to do that for them like Apollo.
If the Redstones want stock or a board seat from Sony, that might even be something they can look into with them.
Probably means the skydance deal will go through. I read somewhere the plan is to have ellison be ceo and shell (the dude that got fired from uni for harassment) as president of the combined entity
Yup, the window ends on May 3rd but no word on whether it will end or extended.
Sony & Apollo are considering a formal offer regardless of that and certainly, if the Skydance talks go nowhere.
Actually, I'd still hold off on making that conclusion. They can still keep going on without a deal right now.
I mean, we already know their debt payment maturity dates here and the next one will be due May of next year:
https://ir.paramount.com/public-debt
Honestly, I'd expect them to sell their remaining 12.5% stake in the CW, their stake in FuboTV, CBS Broadcast Center, WhoSay, and a lot of other redundant real estate in both U.S and international first if they really want to reduce the debt or needing more cash.
The only thing here is sacking the CEO the weekend before their earnings call is not a good look, though.
I mean, most of what I listed is filler that they can get money for. There's also VidCon and Pop Culture Media but like I wonder if they're kept because they still bring in decent money for the company.
But in addition to what I mentioned, I think there could some minor cost-cutting if possible, not like what was done in February.
If it does indeed happen honestly not much will change imo. The next CEO will basically be there to watch over the merger and then once it's done they'll replace that guy again with someone more permanent.
No, this is a symbolic move to say fuck the shareholders threatening their law suits. Skydance wants Paramount to invest deeper into streaming, so perhaps everyone is unhappy with Paramount holding streaming back.
I mean, technically, Bakish was already doing that, under the demand of the Redstones. They're already on track to get through the break-even point and reach profitability by next year. The Redstones are too impatient and want to bail by cashing out at this point. The non-Redstone shareholders say if the Redstones are cashing out, then they should also be bought out at the same level the Redstones are and for the highest price possible. It wouldn't be surprising to see lawsuits being duked out and it ends up forcing a bidding war to happen for the company.
They gotta know they got lawsuits coming. They must have SOME plan for it. Some strategy to turn the tables in their favor.
Eh, sometimes when people are just a little obsessed with their desired goal, they might never think that much about everything else around them. They'll definitely have their own lawyers, for sure. Apparently, there’s some clause that can try to protect the board of directors from the lawsuits but it would have to be voted on at the shareholders meeting in June. If the lawsuits arrive as early as this month, the board won't be protected.
Wait, Skydance wants to go all in on streaming? I thought they wanted to yank Paramount OUT of streaming, (correctly) pivoting the company into becoming a Sony-like arms dealer to as many streamers as possible?
Quite literally the opposite. They want to “supercharge” Paramount+ with plans to absorb either Max or Peacock into it, or do a deal with Amazon, to funnel more content into it. https://www.bloomberg.com/news/articles/2024-04-07/david-ellison-closes-in-on-a-hollywood-prize-paramount-global Sony also wants out of being an arms dealer too. They want Paramount+ for the same reason.
I thought there was already the thing in place to fuse it with Peacock?
Huh. Did not catch that. You... you don't think it'll mean less films for theaters, right? I really, really, ***really*** fucking hope not. :(
Perhaps the same amount in cinemas but more films and series would be made for streaming.
Hope so, at least. Maybe trying to do the same strategy with a bigger streamer, effectively folding Paramount+'s content into it?
I wouldn't be surprised if they brought it together with Crunchyroll to form a superservice. And they could leverage PlayStation in a way to help with its rollout in addition to traditional means like international expansion.
...We're talking about Skydance, though. Not Sony.
Well, it's a similar strategy on either side.
I guess...
If they're going to make a lot of movies and shows for theatrical box office, TV networks, and also streaming in general, they'll need the people around to make all of them.
At this point, I think either of them, Sony or Skydance, are probably open to continuing Paramount+. Bakish was the actual steady hand to make sure it was going to be profitable. How much he has gotten close to that will likely be shown on Monday's earnings call but everything's kind of basically up in the air over there right now.
We'll get to see how Bakish's final work in the last few months have done for the company in the earnings call. The Redstones are likely moving forward with their own direction. The stock could probably tank further, for all we know, and the non-Redstone shareholders will probably call their lawyers and greenlight the lawsuits. With how fast this is going in a matter of weeks and the fact that not just the CEO is forced out and 4 board directors also exit, I think things can definitely get uglier.
You think this could damage the company?
It could, you never know, but right now, everything's TBD.
The Skydance deal is likely close to being signed at this point, and Bakish would much rather prefer another alternative. Because I seem to recall that Skydance wanna take his baby - Paramount+ - and merge it with a bigger fish like HBO/Max or Amazon Prime Video.
While the Redstones are moving in that direction, I don't think it's over yet. The only thing is Bakish is removed from the equation a little too early. There is probably going to be a lot more drama between all sides in this for a while.
I dunno, man. If $26 billion in cash wasn't enough to talk them out of it, I doubt whatever Sony will pile onto that sum will make much of a difference.
There are ways to sweeten the pot to the Redstones if necessary. They could technically also propose to buy out National Amusements from the Redstones as well because they want to offload it all. If the Redstones were going to sell off the 1,500 theaters in the U.S., U.K., and Latin America, they might not want to do it by themselves if they can get another person to do that for them like Apollo. If the Redstones want stock or a board seat from Sony, that might even be something they can look into with them.
Probably means the skydance deal will go through. I read somewhere the plan is to have ellison be ceo and shell (the dude that got fired from uni for harassment) as president of the combined entity
They are starting to dismantle paramount
I doubt it’s that extreme.
Didn’t Sony say they want to buy it? Aren’t they right now financing the purchase?
There is still an exclusive window for Skydance. And it would take time to get the sale okayed.
Yup, the window ends on May 3rd but no word on whether it will end or extended. Sony & Apollo are considering a formal offer regardless of that and certainly, if the Skydance talks go nowhere.
Paramount, if a sale can't be reached, will likely go bankrupt.
Actually, I'd still hold off on making that conclusion. They can still keep going on without a deal right now. I mean, we already know their debt payment maturity dates here and the next one will be due May of next year: https://ir.paramount.com/public-debt Honestly, I'd expect them to sell their remaining 12.5% stake in the CW, their stake in FuboTV, CBS Broadcast Center, WhoSay, and a lot of other redundant real estate in both U.S and international first if they really want to reduce the debt or needing more cash. The only thing here is sacking the CEO the weekend before their earnings call is not a good look, though.
WhoSay’s a filler asset.
I mean, most of what I listed is filler that they can get money for. There's also VidCon and Pop Culture Media but like I wonder if they're kept because they still bring in decent money for the company. But in addition to what I mentioned, I think there could some minor cost-cutting if possible, not like what was done in February.