Paramount Global’s Desperate Attempt to Stay Relevant
In a move that reeks of desperation, Paramount Global has agreed to merge with Skydance Media in a deal that will see the joint enterprise, laughably dubbed "New Paramount," valued at a paltry $28 billion. The deal is a clear sign that the once-mighty media giant is struggling to stay afloat in a rapidly changing industry.
Paramount’s Debt Crisis
At the heart of the deal is Paramount’s crippling debt, which stands at a staggering $14.6 billion as of March. This is largely due to the company’s failed attempts to compete with streaming giants like Netflix and Disney+, with losses mounting and its broadcast and cable TV business in decline. The only way to keep the company afloat was to sell out to Skydance Media, a company founded by the son of Oracle’s Larry Ellison.
A New Era of Corporate Cronyism
Under the deal, Skydance founder David Ellison will become the new chairman and CEO of Paramount, with Jeff Shell, former CEO of NBCUniversal, as its new president. This is a clear indication that the new regime will be led by corporate insiders who are more interested in lining their own pockets than in serving the best interests of the company.
A Done Deal?
Despite the merger agreement’s 45-day "go-shop" period, which allows Shari Redstone to shop the deal to other potential buyers, it’s clear that the deal is already a done deal. Redstone’s internal announcement to employees thanking them for their service suggests that the company is already prepared to move forward with the merger, and that any attempts to find a better deal will be half-hearted at best.
The End of an Era?
The merger marks the end of an era for Paramount Global, a company that was once a major player in the entertainment industry. With this deal, the company is effectively surrendering its independence to Skydance Media, a company that is unlikely to prioritize the needs of Paramount’s employees or shareholders. The future is uncertain, but one thing is clear: this is a dark day for the entertainment industry.
Author: Kayitsi.com
