There is a growing chance that Paramount+ may be put up for sale. Paramount Global, the overarching company that owns Paramount+, may soon have a new owner. Shari Redstone, the media conglomerate’s controlling shareholder, has been holding private talks to sell the company. There are no named buyers or firms interested in the initial report.
Redstone is open to a merger with another media company or selling Paramount Global altogether, according to CNBC. Paramount Global is a massive company that has its foot in many forms of media. Its over-the-air CBS channel, an array of sports offerings, a significant variety of TV shows and movies, and Paramount+, the company’s paid streaming platform, are just some. Redstone looking at selling her controlling stake in Paramount Global could mean major change for the latter. Therefore, sports fans have a close eye on Paramount+.
Streaming continues to haunt Paramount Global
Paramount Global is working at a net loss. The company’s foray into the streaming world with Paramount+ has been hurting its profits. For example, the company’s CEO, Bob Bakish, said 2023 will be the peak loss for streaming at Paramount Global. As a result, the company has different paths it may take to make up for these losses.
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One of those is to sell Paramount+. Paramount Global may hold out hope that companies like Amazon or Apple can buy Paramount Global entirely. That would bring all the content and offerings that Paramount and its content has to those major tech companies. Laura Martin, an analyst at Needham & Co., which is a finance service company, wrote to clients earlier this month that Paramount Global is in an interesting position where it is too small to win the streaming wars. However, it is small enough to be a potential asset for a bigger company.
“We believe Paramount Global is too small to win the streaming wars, but it is bite-size enough to be acquired by a larger streaming competitor for its deep library of film and TV content, as well as its sports rights and news assets.”
Paramount+ sale may not make sense for bigger companies
However, Paramount+ is bleeding cash from Paramount Global. Companies like Amazon or Apple may not want to take that on even with their deeper pockets. Even if Paramount Global and Paramount+ offer one of the better content selections, these types of streaming services may not be the best idea. Warren Buffett told CNBC the streaming world is “not a very good business.”
Paramount+ is not alone in its struggles to generate any kind of substantial revenue. Peacock, which belongs to NBC, recorded an increase in deficit earlier this year. ESPN+ bumped up its price again this year to minimize losses in a diluted streaming world.
Therefore, if Paramount+ cannot find a full sale, a merger may make more sense. Paramount Global was formed after a merger between CBS and Viacom in 2019. Linking up with Warner Bros. Discovery could be a sensible switch. Of course, US regulators may find issues with that merger, according to CNBC.
Regardless, there is potential for change at Paramount Global. Paramount+ could be up for sale or a drastic move as a result.
PHOTO: IMAGO / Levine-Roberts.
