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Paramount Globalís future ó News, Rumors

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Paramount Globalís future ó News, Rumors

Old 05-03-24, 10:48 AM
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Re: Paramount Globalís future ó News, Rumors

Originally Posted by devilshalo
Talking about it the other day, there's not much in the way of IP either... Star Trek, Mission Impossible and Top Gun are all that come to mind (maybe some horror titles.)
They also have TMNT, Scream, Transformers, Paw Patrol, Sonic, and Spongebob.
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Old 05-03-24, 11:14 AM
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Re: Paramount Globalís future ó News, Rumors

Sony doesn’t have a streaming service and licenses their newer movies to Netflix. If this sale goes through, I’m curious what they do with Paramount +. Would they shut it down? I heard it has over 70M subscribers now. But, it’s been a financial albatross for Paramount.
Old 05-03-24, 03:09 PM
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Re: Paramount Globalís future ó News, Rumors

Originally Posted by DJariya
Sony doesnít have a streaming service and licenses their newer movies to Netflix. If this sale goes through, Iím curious what they do with Paramount +. Would they shut it down? I heard it has over 70M subscribers now. But, itís been a financial albatross for Paramount.
No way they shut it down. Too many subscribers. They probably raise the price once they can start incorporating their own content into it.
Old 05-03-24, 04:01 PM
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Re: Paramount Globalís future ó News, Rumors

Streaming isn't turning out to be very profitable so far. The multi-channel cable bundle was very profitable, but many companies are losing a lot of money with their streaming services. It took Netflix a long time to finally become profitable.
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Old 05-03-24, 04:07 PM
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Re: Paramount Globalís future ó News, Rumors

Insiders tell Variety that the expectation at the company is that neither of the two offers in play ó Skydance Media-RedBird Capital Partners and Sony Pictures Entertainment-Apollo Global Management ó will come to fruition. And Redstone is said to have reluctantly concluded that a deal with David Ellisonís Skydance, a longtime partner of Paramount Pictures, will not be possible.

As of Friday morning, the special committee established by Paramount Globalís board to evaluate M&A proposals had not notified Skydance one way or the other about its best and final offer, which would involve Skydance acquiring Redstoneís National Amusements Inc. and merging Skydance and Paramount Global, per a source familiar with the talks. The exclusive negotiating window between Skydance and the Paramount Global boardís special committee established to review M&A offers is set to expire at midnight Friday.

Meanwhile, the Paramount boardís special committee will review the joint Sony-Apollo offer, floating a $26 billion all-cash buyout premium, after the May 3 expiration of the Skydance negotiating window. But that may be so the board fulfills its fiduciary duty to consider all credible M&A proposals. Insiders expect the proposal to ultimately be a deal-breaker, given anticipated regulatory hurdles required to complete such a transaction.
https://variety.com/2024/film/news/p...rs-1235991298/
Old 05-04-24, 12:30 AM
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Re: Paramount Globalís future ó News, Rumors

Big mergers are always bad, especially with massive job cuts. But, $26 billion (at least starting) is a good chunk of cash to possibly save Paramount from death.

I mean Paramount's stock is trash at $12.88 per share as of day.

Netflix, which was in massive debt for years and is about 26-27 years old, is trading at $579 per share. And they don't have a 100 year plus history like Paramount.
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Old 05-05-24, 08:08 PM
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Re: Paramount Globalís future ó News, Rumors

Buffett says Berkshire sold its entire Paramount stake: ‘We lost quite a bit of money’
PUBLISHED SAT, MAY 4 20243:01 PM EDTUPDATED AN HOUR AGO
Yun Li
@YUNLI626

OMAHA, Neb. — Warren Buffett revealed that he dumped Berkshire Hathaway’s entire Paramount stake at a loss.

“I was 100% responsible for the Paramount decision,” Buffett said at Berkshire’s annual shareholder meeting. “It was 100% my decision, and we’ve sold it all and we lost quite a bit of money.”

Berkshire owned 63.3 million shares of Paramount as of the end of 2023, after cutting the position by about a third in the fourth quarter of last year, according to latest filings.

The Omaha-based conglomerate first bought a nonvoting stake in Paramount’s class B shares in the first quarter of 2022. Since then the media company has had a tough ride, experiencing a dividend cut, earnings miss and a CEO exit. The stock declined 44% in 2022 and another 12% in 2023.

Just this week, Sony Pictures and private equity firm Apollo Global Management sent a letter to the Paramount board expressing interest in acquiring the company for about $26 billion. The firm has also been having takeover talks with David Ellison’s Skydance Media.

Paramount has struggled in recent years, suffering from declining revenue as more consumers abandon traditional pay-TV, and as its streaming services continue to lose money. The stock is in the red again this year, down nearly 13%.

Buffett said the unfruitful Paramount bet made him think more deeply about what people prioritize in their leisure time. He previously said the streaming industry has too many players seeking viewer dollars, causing a stiff price war.
Old 05-05-24, 08:16 PM
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Re: Paramount Globalís future ó News, Rumors

Not sure how Iíd feel about that. It seems like Sony can barely manage their own film division. Giving them control of Paramount which owns a lot more big franchises worries me a bit. Not as though Paramount on their own are that great though.
Old 05-06-24, 10:47 AM
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Re: Paramount Globalís future ó News, Rumors

Originally Posted by lwhy?
Streaming isn't turning out to be very profitable so far. The multi-channel cable bundle was very profitable, but many companies are losing a lot of money with their streaming services. It took Netflix a long time to finally become profitable.
I think it's because of the overhead and de facto required investment in making content, right? Like if you just license out your content, you aren't making advertiser money I don't think, but you basically don't have to do anything extra. But if you stream, you have to host the servers, accounting, customer service, and tech teams, make new shows and movies exclusively for the service...
Old 05-06-24, 08:40 PM
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Re: Paramount Globalís future ó News, Rumors

Originally Posted by IBJoel
I think it's because of the overhead and de facto required investment in making content, right? Like if you just license out your content, you aren't making advertiser money I don't think, but you basically don't have to do anything extra. But if you stream, you have to host the servers, accounting, customer service, and tech teams, make new shows and movies exclusively for the service...
That's right and there's also the churn of constantly losing subscribers and having to market and advertising your streaming service to acquire new subscribers. It was difficult to cancel your cable and satellite subscription. You can cancel your streaming services with a click of your mouse. Some people only subscribe to watch a show and they'll binge the service for a month and cancel and subscribe to something else for a month and rinse and repeat.
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Old 05-07-24, 11:43 AM
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Re: Paramount Globalís future ó News, Rumors

Originally Posted by lwhy?
You can cancel your streaming services with a click of your mouse. Some people only subscribe to watch a show and they'll binge the service for a month and cancel and subscribe to something else for a month and rinse and repeat.
and this is where streaming services are going to suffer. They need to make the decision painful... either get someone commited for a full year at an up-front discounted rate or maybe quarterly commitments. That might scare some folks off, but if your retention rate is based on binging, that's a crap business model.
Old 05-07-24, 12:18 PM
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Re: Paramount Globalís future ó News, Rumors

Originally Posted by Rob V
and this is where streaming services are going to suffer. They need to make the decision painful... either get someone commited for a full year at an up-front discounted rate or maybe quarterly commitments. That might scare some folks off, but if your retention rate is based on binging, that's a crap business model.
I believe they do give discounted annual rates? Netflix is the only one that doesn't, I think (and Disney+ plus Hulu without ads combo)
Old 05-07-24, 02:40 PM
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Re: Paramount Globalís future ó News, Rumors

I got a year of Paramount Plus for about $4.00 CDN per month (which honestly is the most I'd pay for it ). If Paramount goes tits up before my year is finished, I'll be pissed.
Old 05-07-24, 04:05 PM
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Re: Paramount Globalís future ó News, Rumors

Originally Posted by lwhy?
Streaming isn't turning out to be very profitable so far. The multi-channel cable bundle was very profitable, but many companies are losing a lot of money with their streaming services. It took Netflix a long time to finally become profitable.
To quote myself For example Disney+ and Hulu finally made a profit of $47 million in their latest earnings report, but when you combine it with what ESPN+ loss, they still had a loss of $18 million. https://www.cnbc.com/2024/05/07/disn...s-q2-2024.html
Old 05-07-24, 04:34 PM
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Re: Paramount Globalís future ó News, Rumors

I am curious how the accounting works. For instance, Disney owns pretty much everything on Disney+ (but not Hulu) and keeps it exclusive, how much excess revenue could they make if they, say, sold Wish to Netflix? They probably don't count that (or even stuff they reclaim from licensing), and any cost of the making of the films fall outside of the streaming service, so I wonder if they actually account for licensing the content from themselves or if it's just a 0 investment on the streaming books (besides residuals that need to be paid out).

If Sony wanted to take Paramount Plus and make it the home of Sony and Paramount films, how much would they lose in the way they license that content out now (even if they let other services have it certainly they would get less for non exclusive rights)
Old 05-10-24, 01:18 AM
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Re: Paramount Globalís future ó News, Rumors

Old 06-03-24, 10:23 AM
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Re: Paramount Globalís future ó News, Rumors

Looks like Skydance and Paramount have agreed to a deal for a merger.


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Old 06-03-24, 10:56 AM
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Re: Paramount Globalís future ó News, Rumors

I hope everything stays together. There's a few CBS/Paramount shows that I really like.
Old 06-03-24, 05:00 PM
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Re: Paramount Globalís future ó News, Rumors

If Shari Redstone doesn't approve this deal, she would be the biggest idiot in Hollywood history.

From everything I read, Skydance appears to be the best company to save Paramount and they are also responsible for producing many massive hits for them, mainly Top Gun:Maverick and the Mission Impossible series. David Ellison runs the company, but is also an active movie producer.
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Old 06-04-24, 12:36 AM
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Re: Paramount Globalís future ó News, Rumors

Streaming seems to be a bottomless money sink and every studio doesn't need their own streaming service.
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Old 06-04-24, 01:14 AM
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Re: Paramount Globalís future ó News, Rumors

Originally Posted by PhantomStranger
Streaming seems to be a bottomless money sink and every studio doesn't need their own streaming service.
Streaming shouldn't be a money loser. The problem is that these services overpay for new content. They've got huge libraries of content, so they should know how much they can spend on new content based on their revenue coming in from subscribers. It shouldn't be that hard to work on a budget, but they seem to assume that the new content will win over new subscribers. Sometimes it does, sometimes it doesn't. Following a budget doesn't seem that hard to do, but they can't seem to do it.
Old 06-04-24, 01:30 AM
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Re: Paramount Globalís future ó News, Rumors

Originally Posted by B5Erik
Streaming shouldn't be a money loser. The problem is that these services overpay for new content. They've got huge libraries of content, so they should know how much they can spend on new content based on their revenue coming in from subscribers. It shouldn't be that hard to work on a budget, but they seem to assume that the new content will win over new subscribers. Sometimes it does, sometimes it doesn't. Following a budget doesn't seem that hard to do, but they can't seem to do it.
Some of the studios and networks like Paramount didn’t go into streaming with the healthiest financial situation.

I think they severely underestimated the actual operating costs, including licensing and residual payments. And also how many subscriptions they could sell. Even library content they already “own” they still have to use it.

The biggest problem right now is “churning”. There are many who don’t want to commit to year long subscriptions. Also, Paramount’s service got off to a very rocky start when it was heavily CBS focused.
Old 06-04-24, 01:37 AM
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Re: Paramount Globalís future ó News, Rumors

If Disney is struggling with streaming with their studio clout and extensive back catalogue then what hope do the other studios have?
Old 06-04-24, 11:46 AM
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Re: Paramount Globalís future ó News, Rumors

Disney brought all their problems on themselves. Disney steaming issue isn’t because of a mass of other companies. Its their dumb decisions for everything else.
Old 06-04-24, 11:49 AM
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Re: Paramount Globalís future ó News, Rumors

Originally Posted by B5Erik
Streaming shouldn't be a money loser. The problem is that these services overpay for new content. They've got huge libraries of content, so they should know how much they can spend on new content based on their revenue coming in from subscribers. It shouldn't be that hard to work on a budget, but they seem to assume that the new content will win over new subscribers. Sometimes it does, sometimes it doesn't. Following a budget doesn't seem that hard to do, but they can't seem to do it.
Fewer people will subscribe to a service for just legacy content. There is a reason why each of these services when they launched invested heavily into new content. Without the "buzz" of new shows and/or FOMO, legacy content that is just always there will be taken for granted.

Logically, there's enough on Netflix right now that I'd probably enjoy watching that it would take me decades to go through, but logic doesn't always win out.
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