EDGAR Bronfman Jr’s plans for Paramount Global include partnering with a technology stalwart such as Amazon.com or Apple to improve its streaming-TV business, according to people familiar with his thinking.
The longtime media executive, who put in a last-minute bid for control of Paramount last week, does not believe any legacy media companies have really gotten a handle on streaming. He thinks Paramount needs more specific skills in terms of customer acquisition and ad sales, said the sources, who asked not be identified discussing plans that have not been made public.
Paramount’s streaming-TV business earned US$26 million on sales of US$1.88 billion in the most recent quarter. Paramount+ has 68 million subscribers, far fewer than rivals such as Netflix and Walt Disney. Paramount took a US$5.98 billion charge against its cable-TV channels, which have lost viewers and advertisers as consumers switch to streaming.
Bronfman is also looking to team Paramount up with a company that can take it to a higher level in terms of licensing its many brands for consumer products.
The 69-year-old heir to the Seagram liquor fortune is in a two-man race with independent film producer David Ellison to take control of Paramount, the home of CBS, MTV and other media businesses.
US$6 billion bid
Bronfman submitted a US$6 billion bid last week to buy the Redstone family holding company, National Amusements, which owns most of the voting stock in Paramount, and to acquire more of the company’s shares. Bronfman is still working on getting the final signatures together for his financing package, but he has all the investors in place, the sources said.
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A special committee of Paramount’s board is expected to determine Aug 28 whether Bronfman’s proposal is superior to Ellison’s offer. If the board deems it so, Ellison could counter before a Sep 5 deadline.
Ellison plans to invest more than US$8 billion in Paramount, acquiring shares from existing investors, buying out the Redstones and putting US$1.5 billion into the company for debt reduction. He also plans to merge his film and TV studio Skydance Media into Paramount at a US$4.75 billion valuation, something Bronfman has argued would dilute the non-Redstone shareholders.
Both sides have offered Paramount chair Shari Redstone the opportunity to stay on the board if she chooses, according to several sources familiar with the proposals. CNBC reported earlier on Skydance and Bronfman’s outreach to Redstone on a board seat.
Paramount is currently run by a trio of co-chief executive officers. Bronfman would become CEO if his proposal wins, but he would like the other executives to stay around, said the sources. He’s also planning to bring in two other longtime media executives, former AOL executive Jon Miller and former Turner Broadcasting chief John Martin, for positions at Paramount. Miller is a longtime partner in Redstone’s venture capital firm, Advancit. BLOOMBERG
