Paramount Gets More Buyout Lift

New rumors suggest that Skydance Media  wants to own the whole empire

BREAKING NEWS

Paramount Global got a little more buyout lift this morning after new reports came to light suggesting that David Ellison and Skydance Media are making moves for a complete ownership stake. Can this inject new life into the old media titan? 

WHAT HAPPENED

It’s no secret that Paramount has been suffering in the streaming wars. Expenses are too high and competition is too hot right now. Paramount Global still has great assets though—which is why the stock is surging thanks to a new report that David Ellison and his Skydance Media production studio have exchanged preliminary information with Paramount about a potential takeover. 

Basically, Skydance has been working with RedBird Capital Partners and KKR & Co to completely take Paramount off the public market. The only way that would work is if Skydance and Paramount Global merged and became a new entity entirely. 

NO WINNING MOVES

With Netflix completely dominating on costs and subscriber growth—the streaming wars have been brutal to legacy brands like Paramount Global. The company still has a lot of great assets though and can do well on private markets if they divest from the right costs and adjust from here.

WHY IT MATTERS

2024 is going to be all about capitulation and consolidation in the streaming space. It is going to be progressively more difficult for any company to carve a real niche in Netflix’s territory, so brands like Paramount and Warner Brothers Discovery will need to either sell off assets or combine to stay competitive. For now, investors are eager for Paramount to abandon their new streaming push, as their stock rose over 8% in early trading.