The new bid to acquire Paramount Global from Seagram liquor heir and former Warner Music executive Edgar Bronfman Jr. has already caused plenty of consternation over at Skydance Media, but that isn’t stopping Bronfman from plotting out what he’d do with Paramount if his proposal is accepted. A new report from Bloomberg has details on partnerships that Bronfman might seek out if he becomes Paramount’s new owner, including allying with Amazon or Apple to help make improvements to Paramount+.

Key Details:

• Bloomberg says Bronfman doesn’t think legacy media companies have “gotten a handle on streaming” yet.
• Paramount needs better customer acquisition and ad sales capabilities, according to Bronfman.
• Skydance’s plans for Paramount+ include an eventual ground-up rebuild of the service.

Citing people familiar with Bronfman’s thinking, Bloomberg says that the prospective Paramount buyer doesn’t believe any legacy media companies have “gotten a handle on streaming” yet. He wants to team up with a tech company like Amazon or Apple in order to boost Paramount’s abilities in regard to customer acquisition and ad sales.

From the sound of the report, it doesn’t seem like Bronfman is thinking about launching joint ventures or bundles with these companies, but rather, Bloomberg’s reporting makes it seem that Bronfman wants to enlist these companies to make technological upgrades to his company’s streaming business to make Paramount+ a more attractive proposition for customers and advertisers alike.

It’s certainly fair to argue that Paramount has not seen the same level of success that companies like Netflix or Disney have. Paramount+ had 68 million subscribers as of last count, far fewer than Netflix or Disney+. The company pulled in a modest profit from its streaming arm during the second quarter of 2024 but took a $5.98 billion write-down from its cable channels recently, which shows that streaming still has a long way to go to make good on the company’s linear declines.

What Are Ellison and Skydance’s Plans for Paramount+?

Bronfman’s offer is, of course, not the only deal on the table for the acquisition of Paramount Global. He sent his proposal to Paramount just hours before the 45-day “go-shop” window written into an offer from David Ellison and Skydance Media — a deal that was accepted by Paramount’s board in early July — was set to expire.

Like Bronfman, Ellison sees Paramount+ as a streamer that has not fully lived up to its potential. Ellison has teased a “rebuild” of Paramount+ if he ultimately gets his hands on Paramount Global, saying he wants to improve its algorithms to keep customers engaged and reduce churn in the long run.

Ellison and Skydance have made it known that they are not at all pleased with Paramount’s decision to entertain Bronfman’s offer, and have raised the prospect of pulling out of deal talks. Bloomberg reports that Paramount is expected to announce its decision as to which offer it will pursue on Aug. 28. If Paramount goes with Bronfman, Ellison would have until Sept. 5 to revise his deal.

If Ellison and Skydance back out of talks, Paramount would owe them a $400 million break-up fee that Bronfman has already pledged to pay. Most observers think that the Bronfman bid is a longshot, but it’s far from certain that Ellison will succeed in the end.

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