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Edgar Bronfman Jr. is proposing a $6 billion deal to buy National Amusements Inc., which owns most of Paramount's voting stock, and is also eyeing additional shares.
If successful, Bronfman plans to become CEO, keep the current co-CEOs, and bring in former AOL and Turner Broadcasting executives.
He's also exploring partnerships with tech giants, including Roku, to boost Paramount's streaming service and brand licensing.

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Bronfman believes legacy media companies have not grasped the nuances of streaming

Edgar Bronfman Jr. eyes partnership with tech giants for Paramount

By Akash Pandey

Aug 25, 2024

04:18 pm

What's the story

Edgar Bronfman Jr., a seasoned media executive, is considering a strategic partnership with tech giants like Amazon or Apple to bolster Paramount Global's streaming TV business, according to Bloomberg. This information comes from sources close to Bronfman, who recently submitted a bid for control of Paramount. The sources revealed that Bronfman believes legacy media companies have not fully grasped the nuances of streaming, and that Paramount requires specific expertise in customer acquisition and ad sales.

Business performance

Paramount's streaming business performance and future plans

In the latest quarter, Paramount's streaming TV business generated $26 million in revenue from sales worth $1.88 billion. Despite having a subscriber base of 68 million for its service, Paramount+, it trails behind competitors like Netflix and Walt Disney. The company also incurred a significant charge of $5.98 billion against its cable TV channels, due to declining viewership and advertising as consumers increasingly shift toward streaming services.

Acquisition bid

Bronfman's bid for Paramount and partnerships

Bronfman has proposed a $6 billion deal to purchase National Amusements Inc., the Redstone family holding company that owns a majority of Paramount's voting stock. He is also planning to buy additional shares of the company. The final decision on his proposal is expected to be made by a special committee of Paramount's board on August 28. Bronfman is also exploring potential partnerships with companies that could elevate Paramount's brand licensing for consumer products.

Leadership strategy

Leadership plans and potential collaborations

If Bronfman's bid is successful, he plans to assume the role of CEO while retaining the current co-CEOs. He also intends to recruit Jon Miller, a former AOL executive, and John Martin, ex-chief of Turner Broadcasting for roles at Paramount. Additionally, Bronfman is considering collaborations to reduce costs and has discussed with Roku about providing back-end technology for Paramount's streaming service.