[NYT] Sony in talks to join a bid to buy Paramount
- Thread starter DinkyDev
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The Sony/Apollo deal would certainly include big rounds of layoffs since it's a strategic purchase with operational "synergies, but bolsters the combined entity to more effectively compete in the long-term against their larger peers. Along with other *potential* leverage multipliers across the various Sony divisions. Plus, the class B shareholders preference for a payday. Not sure what Matt's point is regarding "foreign company" in terms of the creative community when Sony have been a major Hollywood player for decades at this point; redundancies, sure, but that isn't a domestic vs foreign issue.
The Skydance deal benefits the competitive aspect for creatives by retaining the "major 5", at least in the short-to-medium-term, but it requires the Skydance/Paramount entity to crawl out of it's hole and really compete for it's long-term prospects, as a public company. M&A is difficult when clean; it's even harder when a chunk of investors are likely to sue you whilst the new leadership team is attempting to pivot the company without obvious "synergies".
There are no guarantee's for either 10 - 20 years out. Pick your poison.
Agree , the whole idea of the big 5 means nothing at this point in time with how much content getting done out side of the so call big 5 .
Right, I honestly wish it was a simple as "Mergers and acquisitions are bad, so Skydance still keeping them as a separate company is good" as some people hope to make it. Skydance shows no signs that they'd be able to transform a company as big as Paramount into a profitable and successful company.
In my defense, I'm not really hoping to make it that. I'm just trying to look at options and figure out what exactly would be the best road at the end of the day.
I absolutely agree there's no evidence that Skydance can successfully turn things around. But I also know people really want Paramount to be separate at all costs, so that's why I've been saying "well, if Skydance gets them..."
Honestly, I'm not sure what the best option is here. All options have their risks, and not getting bought out also means Paramount is going to get broken down.
My only thing that, regardless of if Skydance or Sony get the company, is that they understand that ejecting Nickelodeon without any ties would be absolutely foolish for the studio. I don't know if either will be smart enough to realize that. But I would hope they would be.
This is a good point. There is certainly no guarantee of a happy ending under Skydance.
I was bummed when Amazon acquired MGM, and MGMs films still weren't coming to Movies Anywhere.
Especially since you can link your Amazon account to Movies Anywhere.
Nothing wrong with exploring every outcome, but my post was really speaking to the Era mentality of all consolidation being trillion dollar companies buying up the biggest companies in the industry because they can. This is just a very unfortunate situation Paramount has been in for sometime and the vultures will be coming either way. It says a lot how shareholders were against Skydance beyond just payout issues, the tune completely changed for Apollo once they saw Sony was in the mix too. Clearly they are hoping someone who knows what the hell they are doing takes over which Sony seems to be the leader of the choices.
As for Nickelodeon, I'd say its likely safe since beyond it's mascot franchise (Spongebob) it also holds other valuable IP like TMNT and Garfield. But no one knows for sure what will happen when anyone gets Paramount.
Looks like the Skydance deal is going to fall through so Sony and Apollo is looking more likely
www.thewrap.com
Paramount, Skydance's Exclusive Merger Talks Window Likely to Close Without a Deal
The board’s special committee faces a tough choice: go through with an unpopular Skydance sale, explore Sony and Apollo’s $26 billion offer, or go it alone
www.thewrap.com
I've heard (but dont know how true it is) studios have to pay an upfront fee and a cut of digital movie sales to be part of MA so it may just be Amazon don't think it's worth the cost.
Ah, I gotcha. Yeah, that was fair to speak to.
Oh the IPs are definitely valuable. But I'm also speaking to the ones that Paramount is currently relying on for cash. Ninja Turtles Mutant Mayhem just got declared the fourth most profitable film of 2024 by Deadline, and unlike the Hasbro IPs, they don't have to negotiate for usage constantly or share money. Paw Patrol is starting to become a film franchise. Obviously SpongeBob is Nick's biggest ip, but it has three films already and a fourth on the way. A:TLA has a studio and an incoming theatrical movie that could also turn into a film franchise too.
They have those pillars now. I feel like it would be extremely foolish for them to give up Nick and enter a Hasbro situation at best, at worst give it up entirely.
But yeah, unfortunately we don't know until the final decision is made. I just pray the new parties understand how much of a vital pillar Nick is to the film studio.
Looks like both deals are likely to fall through
variety.com
Skydance’s Proposed Deal With Paramount Global Appears to Be Falling Apart
After months of M&A talks, Paramount Global and controlling shareholder Shari Redstone might be going it alone after all.
variety.com
If both deals fall through, there will still be some significant cuts and some pieces sold.
One of Shari's issues with Bakish was his inability to close a deal to sell BET.
One of Shari's issues with Bakish was his inability to close a deal to sell BET.
Was this one big ploy to kick out Bakish?Looks like both deals are likely to fall through
Skydance’s Proposed Deal With Paramount Global Appears to Be Falling Apart
After months of M&A talks, Paramount Global and controlling shareholder Shari Redstone might be going it alone after all.
Looks like both deals are likely to fall through
Skydance’s Proposed Deal With Paramount Global Appears to Be Falling Apart
After months of M&A talks, Paramount Global and controlling shareholder Shari Redstone might be going it alone after all.
Oh damn. I'm worried about how bad this is going to go, even if some are going to be happy this means no acquisitions.
Also, should I just make a new thread at this point? A) Because a bunch of people don't actually check in beyond thread titles / B) We're looking at a new scenario for Paramount's future at this point.
OP
OP
I think Shari just didn't think it was worth the potential legal battles the Skydance deal would've started and the Sony/Apollo deal would've broken up the company. Shari has been dead set on keeping the company together from the beginning.
Looks like both deals are likely to fall through
Skydance’s Proposed Deal With Paramount Global Appears to Be Falling Apart
After months of M&A talks, Paramount Global and controlling shareholder Shari Redstone might be going it alone after all.
This makes me actually curious how the board/shareholders will respond to what is possibly the best deal they can get being turned down entirely because of the owner's personal preferences?
Got no stakes in this (heh) myself on the deal going through or not but given the state of the company that is interesting.
Yeah seems like taking the Sony deal would be in their best interests financially lol...
Both Variety and Hollywood Reporter are saying that regulatory issues are a concern, so I guess it's up to Sony and Apollo to convince paramount's special committee that they could navigate them. Then they would have to convince Redstone to go along with it.
Done.
Paramount appears to be rejecting BOTH Skydance and Sony/Apollo's offers. Possible plans from here in OP News - Entertainment - Video/Streaming
https://variety.com/2024/biz/news/paramount-global-reject-skydance-sony-apollo-offers-1235991298/
www.resetera.com
Don't think also make public announcements about that kinda stuff?
I don't think they *have* to make any public announcement? CNBC and I think NYT both said they made an offer yesterday.
well... is not over yet at all
https://www.nytimes.com/2024/05/03/business/media/paramount-skydance-exclusive-talks-lapse.html
https://www.nytimes.com/2024/05/03/business/media/paramount-skydance-exclusive-talks-lapse.html
Posted by ChaosSlayer over in the PlayStation OT, sounds like Sony will now attempt to only buy the parts they would have kept had the full deal gone through
deadline.com
Sony & Paramount Sign Non-Disclosure Agreement Allowing Deal Talks To Start, But It’s Not Looking Like A $26 Billion Bid For Whole Company Anymore
Sony signed a non-disclosure agreement with Paramount allowing deal talks to begin but they'll not be focused on a $26 billion bid for whole company.
deadline.com
A lot of Paramounts useful IP is tied up with the cable stations though isn't it? Is Star Trek even with the studio proper?
Just checked at the USPTO, the Stark Trek trademark is owned by CBS Studios.
I suppose they could mean they are buying all of the production studios, rather than "the" studio
I think so. They would take all the production and IP separated from the CBS network, which would be sold elsewhere.
That's why Disney owns the Simpsons for example, even though they didn't buy the Fox Network.
I'm assuming this means they would buy the Nickelodeon production studio as well?
That would be the assumption, but with Sony's offer possibly narrowing, who knows.
The point of doing this for Sony would be the studios and IP. But maybe they think they can't get all the IP and would be choosier?
That seems like a massive mistake for the Paramount Studio to let Ninja Turtles, Spongebob, Avatar and a few others just go away.
That article isn't really clear…so Sony and Apollo are no longer jointly bidding? That likely kills any attempt by Sony as Paramount already rejected their attempt to buy Paramount Pictures.
Guess it's Skydance's to lose.
Guess it's Skydance's to lose.
I don't think it's saying they're no longer jointly bidding. I think they're jointly bidding, but not on all assets. And I think the key is this part:
"Some industry players believe Apollo mostly wants the studio lot as a real estate play"
and this:
"As things stand, Apollo's current station holdings would put it over the Congressionally mandated broadcast cap."
I agree in theory, but if they can get a deal done for some of Paramount, they might see that as better than nothing. They tried to just buy Paramount Pictures in the past, right?
Anyway, maybe the Nick stuff is still in their offer. We don't know yet.
I'm still not 100% sure if this goes through considering Sony investors still aren't thrilled about the idea of doing this.
I'm in wait and see mode until we know for sure exactly what's going to go down. Honestly, I still see each of the three paths having an equal chance at this point.
WB would get the network, not CBS Studios. It would make no sense if Sony bought just Paramount Pictures itself, it would obviously include the entire production and IP side of the company.