National Amusements Pursues Sale of Network Ten & Paramount+

The landscape of the streaming market continues to undergo significant changes. This shift has been highlighted by Amazon Prime's recent announcement of substantial layoffs. Adding to the turbulence, National Amusements is currently exploring a sale of its media assets. This move includes Paramount+ and the Ten network in Australia, with discussed market capitalization figures reaching around A$14.5 billion.

Media Giant Up For Grabs

As the majority shareholder of National Amusements, Shari Redstone is contemplating the sale of the holding company that commands an influential presence in the media world through Paramount Global. This potential sale could result in the Ten network changing hands along with Paramount's streaming service, Paramount+.

Voting Shares Control the Future

With ownership of a 10% equity stake in Paramount Global and controlling 77% of voting shares, National Amusements holds a significant influence over the company. According to analysts at the most recent Consumer Electronics Show (CES), National Amusements' control could represent up to 50% of Paramount Global's market value.

An analyst from CES mentioned, "She wants out and it's just a matter of getting the highest bid." BDT Capital Partners, the advisors for Redstone, have started sending out confidentiality agreements to gauge interest from private equity firms.

Interested Parties Line Up

Media giants such as Warner and Discovery have already shown interest in acquiring the business. The complexity of the deal is emphasized by insiders who note that while Shari Redstone may prefer selling the entire operation, sourcing a suitable bid for Paramount Global has been challenging.

The possible value of Shari Redstone's stake, especially considering the control the voting shares offer over Paramount, could be quite substantial. However, National Amusements has not publicly commented on the matter.

Paramount Global's Market Standing

Paramount Global is not only known for its movie franchises like "Mission: Impossible" and "Transformers" but also owns popular networks including CBS, Nickelodeon, Comedy Central, and MTV. With a market capitalization of $9.4 billion, National Amusements' stake in Paramount Global is valued just shy of $1 billion.

The Wall Street Journal reported potential interest from Skydance, a Hollywood studio, in an all-cash bid for National Amusements, with CEO David Ellison purportedly backed by his father, tech mogul Larry Ellison of Oracle.

Ellison is keen on acquiring at least a majority stake in National Amusements, potentially facilitating a merger with his studio and Paramount, suggests the report.

The future of Paramount and Shari Redstone's significant stake in the company remains uncertain as the media landscape continues to shift.

streaming, sale, media