The Paramount Global-Skydance merger is on track to close in the first half of 2025 and “in the meantime, the Skydance and Redbird teams support our strategic plan and we are continuing to operate business as usual,” said Chris McCarthy — who runs Paramount with Brian Robbins and George Cheeks — on a call after quarterly earnings Thursday.
That includes an anticipated $500 million in cost cuts, a chunk from layoffs of about 15% of Paramount’s staff that started today and will go through the rest of the year, as well as asset sales.
David Ellison’s Skydance, backed by Oracle co-founder (and his father) Larry Ellison, and Gerry Cardinale’s RedBird Capital clinched an agreement with Shari Redstone-controlled Paramount in July. It included a 45-day waiting period for another bidder to appear, but there doesn’t seem to be a lot of movement on that front. They’d have until 11:59 p.m. ET on August 21.
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The deal would then need regulatory approval to close.
Par might look a bit different by then. The CEO trio noted active discussions around potential strategic partners for Paramount+, and a major focus on boosting Par’s balance sheet by “optimizing” its asset mix,” said Cheeks — meaning asset sales.
“We are aggressively evaluating our portfolio with the goal of improving our balance sheet,” he said. “The set of assets that make up Paramount global today were built up through the rise of linear. And, while we have strong brands and businesses, we must reshape our portfolio to best compete in the future.”
He said “the assets under consideration are undeniably strong with exciting futures ahead but will be better served on their own or as a centerpiece of another business.” He didn’t name any. BET, which was put on sale then yanked back under former CEO Bob Bakish, is said to be one asset on the block.
Partners and divestitures have been talked about before, but the language used today was a bit more emphatic than in the past. Cheeks promised an update on a future call.