Paramount Global is undergoing significant financial and strategic shifts, including a potential change in ownership and a focus on improving its financials amid rising M&A activity. A leading position to acquire Redstone's stake in Paramount has been held by a combination of Skydance and RedBird Capital, aiming to gain control of Paramount's assets through the purchase of National Amusements. Paramount's earnings preview indicates an anticipation of improved financials, with specific strategies such as offshore production to reduce costs, focusing on franchises and unscripted content, and lowering the average cost of movies. Paramount+ reported adding 4.1 million subscribers in the fourth quarter, with an expectation of lower subscription growth but healthy revenue growth in 2024. The company also plans to cut spending on movies and shows in 2024 and expects to take a $1 billion charge in Q1 for layoffs, restructuring, and content write-downs. Additionally, Paramount's CEO expressed skepticism about the potential success of the planned Fox-Disney-WBD sports streaming venture, suggesting it may not be ideal for true sports fans. The premium SVOD market, where Paramount operates, saw growth slow to 10% in 2023 but has more than doubled in four years. Paramount Global CFO projects low to mid-teens advertising growth in Q1, benefiting from the Super Bowl.
It’s almost time for @LastCallCNBC! Talking Paramount Global earnings and potential hints about a sale/2024 strategy. Live on @cnbc at 7:15. $para
Paramount CEO: Ad market tough, but bright spots ahead https://t.co/tkPlcpQvch by @allie_canal
Planned Disney-Fox-WBD Bundle “Only Has A Subset Of Sports”, Paramount CEO Bob Bakish Says: “It’s Hard To Believe That’s Ideal” https://t.co/hOpP19WGMd
Paramount to Cut Spending on Movies, Shows In 2024 https://t.co/zmLzbSy0Ry
Paramount Global expects to take a $1 billion charge in Q1 for layoffs, restructuring and content write-downs. https://t.co/GqWUCPuKDY
Paramount Global Sees $1 Billion Charge in Q1 for Layoffs, Restructuring https://t.co/RCae4A1ihd via @variety
Bakish says Paramount continues to look for "incremental" bundling opportunities. Combining with Peacock wouldn't be incremental. But offering a bundle with Peacock might be.
Paramount’s Bob Bakish Doubts the Fox-Disney-WBD Sports App Will Be ‘Ideal’ for ‘True Sports Fans’ https://t.co/Gn55jkaa04
Paramount+ added 4.1m subs in the 4Q. That was relatively balanced between domestic and international subs, CFO says. Sub growth will be lower in 2024 than 2023, but still expect healthy P+ revenue growth, CFO says. noting revenue growth "more important" than subs.
Paramount Global predicts FCF will grow in 2024 vs 2023 despite increase in cash spend from productions beginning after 2023 strikes.
Paramount Global CFO: Low to mid-teens advertising growth in Q1 projected, with benefit of the Super Bowl.
Paramount Global CEO touting offshore production (lower cost), building on franchises, unscripted (low cost), and lowering the cost of the average movie. The creative community must love hearing this!
Similar to Warner Bros. Discovery owning HBO and including that in d-to-c results, it should be noted Paramount's promise of turning P+ profitable in 2025 includes Showtime.
Disney-Fox-WBD Sports Bundle Raises "More Questions Than Answers" For Nexstar Exec Mike Biard, But He Sees Upside If Venture Does "Actually Launch" https://t.co/gS8g5WTXdD
Nexstar President Says Fox-Disney-WBD Sports Streaming Venture Will Offer ‘Additive’ Revenue Stream, Dings ‘Market Overreaction’ to Deal https://t.co/GtslZiAPp3
What is Paramount’s future? Will there be a new controlling shareholder replacing National Amusements and the Redstone family? Is Paramount itself being acquired? $PARA https://t.co/qh0kCnfyPh
Is Paramount Really Trying to Buyout NAI and Six Other Questions for Earnings Tonight $PARA @paramountco @paramountplus https://t.co/qh0kCnfyPh
Paramount earnings preview: Investors eye improved financials amid rise in M&A noise https://t.co/Fvx3gaRZlj by @allie_canal
SCOOP: A combination of @Skydance and @RedBirdCap has been in the lead position to buy Redstone's stake in @paramountco for weeks, sources tell @FoxBusiness. The plan is to back into owning $PARA's assets through the purchase of National Amusements, compensate common shareholders…
We've just released the Q1'24 State of Subscriptions Report and it's all about Premium SVOD. While it's true growth slowed to 10% in 2023, the category has also more than doubled in four years. A quick 🧵... https://t.co/JHWAPPHXhk