Billionaire Former Paramount Pictures Head Barry Diller Is in Talks to Buy Paramount Global
Diller’s conglomerate IAC has signed non-disclosure agreements with National Amusements, but no deal is imminent yet.
Just when you thought the talks of Paramount being acquired might die down, a new suitor has emerged. According to a report from the New York Times, former Paramount Pictures head Barry Diller has entered into formal discussions with National Amusements Inc., the holding company owned by Shari Redstone which controls a majority of Paramount Global’s voting stock about an acquisition. It’s the latest turn in the Paramount saga, even as the company continues making plans for its future if no one steps up to the plate to buy it.
Key Details:
- Diller tried to buy Paramount in the 1990s, but was outbid by Shari Redstone’s father Sumner.
- National Amusements and Diller’s IAC have signed non-disclosure agreements.
- Paramount is actively seeking joint venture opportunities for its streaming service Paramount+.
The interest from Diller appears to be the most serious revival of merger discussions for Paramount since deal talks with Skydance fell through in early June. Names like media executive Edgar Bronfman Jr. and filmmaker Steven Paul have also been mentioned as interested in the company over the past month, but there’s been little movement from either regarding an actual purchase of Paramount.
The Times reports that Diller’s holding company IAC has signed non-disclosure agreements with National Amusements, which allows both sides to get a detailed look at the other’s books. This is an important step in the deal process, but it does not mean that a pact is imminent; Sony and Apollo Management signed NDAs with Paramount back in May, but it appears that active discussions between the parties about a deal have tapered off.
Diller took over Paramount Pictures in 1974 and tried to buy the company outright in the 1990s. But he was outbid by Shari Redstone’s father Sumner, who grew the company into a multipronged entertainment empire. Now, Diller has a chance to bring that failure full circle.
For Paramount, it’s another chance to solidify the future of the company through partnerships. That will be its strategy even if it remains an independent company; Paramount’s three-headed “Office of the CEO” has been clear about its intentions to merge the Paramount+ streaming service with another platform, and this week it was reported that the company is in talks with Warner Bros. Discovery and other outlets about making such a move.
Paramount is also seeking at least $500 million in cost savings, which will be achieved partly by layoffs. Another part of the cost-cutting strategy is more robust management of Paramount’s digital assets; the company recently removed video archives from websites for channels like Comedy Central and MTV, in order to steer more viewers to Paramount+.
Paramount has some attractive assets, such as its film and TV library and its studio lot. But its roughly $14 billion debt load and the fact that Paramount+ still isn’t profitable, combined with declining revenues from its cable channels make it a challenging company to sell, which is why the merger and acquisition process has been so drawn out.
Paramount Plus
Paramount+ is a subscription video streaming service that includes on-demand access to 40,000+ TV show episodes from BET, CBS, Comedy Central, MTV, Nickelodeon, Nick Jr. and more. The lineup includes “1883,” “Tulsa King,” “Star Trek: Discovery,” Nickelodeon’s “SpongeBob SquarePants,” and “PAW Patrol.” Subscribers can watch the NFL, college football, The Masters, college basketball, UEFA Champions League, UEFA Europa, Serie A, and NWSL. The service also offers the option to watch your live CBS affiliate. The upgraded ad-free package includes premium movies and shows from Showtime.