Red alert!
As the news goes, a controlling stake in Paramount Global may be up for sale soon. And that could mean big changes to both Paramount+ and Star Trek as a franchise.
According to Industry watcher Puck, chairwoman Shari Redstone is reportedly considering the sale of her controlling stake in Paramount Global. Redstone owns roughly 10% of Paramount Global through her company National Amusements; this 10%, though, effectively accounts for 80% of the Paramount’s voting shares. The news is backed up by The Wall Street Journal, as well as others, which claim that both Skydance Media and equity firm RedBird Capital are in early talks to acquire Redstone’s shares. Of these, Skydance has a history with Paramount, having co-produced a number of films, as well as two Star Trek theatrical films, as well as the development-hell-bound Star Trek 4. The Wall Street Journal also reports that Redstone has met with Activision CEO Bobby Kotick, so that’s proof that things can always be worse.
So why buy out Shari Redstone rather than buy the company? Well, essentially, it’s a cheaper means of gaining control of Paramount without having to buy the company (and take on the company’s debts). It could also mean that parts of the company could be sold off, or shut down, in the future. Skydance’s David Ellison is reportedly only interested in Paramount Pictures, CBS Studios, and all their intellectual property, but has no particular interest in acquiring their broadcast network CBS, their cable channels, nor Pluto TV and Paramount+. A Wells Fargo Analyst suggested that Paramount+, which has been in the red since launching, might be shuttered entirely.
Redstone has clearly been toying with the idea of selling her shares, as early 2023 saw her in a number of talks with the likes of Amazon, Apple, and Netflix. Her primary goal, however, is to keep the company, as well as her family’s legacy within it, together, while also making it attractive for an acquisition. As of right now, however, much is up for speculation. What is known is that Paramount recently set new severance packages for executives in the event their departure in the case of an acquisition, so there’s a good chance.
As for Star Trek, well, the no-win scenario worst case scenario would likely be that it would disappear from streaming for a short while. This would be due to the sale or shutdown of Paramount+, which has, as stated above, never turned a profit, thus making it one of the least appealing parts of any acquisition. Of course, any merger might see the IP as a whole moved to another platform, or see the service of another platform merged into Paramount+.
It’s all a bit early to really speculate on what will happen. That said, according to that Wells Fargo analyst, a freshly merged Paramount might come out of the deal much stronger than they are now. Of the noted entities, Skydance may be the most viable and compatible as they already have a working relationship with Paramount Global.
That all being said, this will all come down to whether or not Sheri Redstone gets what she wants out of a deal, as she’s been very particular about such things in the past. If not, then the company will have to continue on as is, ideally getting Paramount+ in the black and buoying their broadcast and cable networks somehow.
Source: TrekMovie.com
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