Paramount Global’s stock soared more than 14% on Friday following multiple reports that RedBird Capital and Skydance Media are eyeing a potential takeover of the media conglomerate, one that would be done by taking over voting shares owned by Paramount parent company National Amusements.
Paramount has reportedly been in talks with Apple about a streaming platform bundle deal that would rival other platforms like Netflix and Max. (Photo by Patrick T. Fallon / AFP) (Photo by PATRICK T. FALLON/AFP via Getty Images)
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Key Takeaways
- Shares of Paramount Global, now up 12.38%, rose as high as $17.24 on Friday, an increase from the $11.82 it traded at one month ago.
- The surge comes after Thursday reports from Deadline and Puck News indicated RedBird and Skydance were exploring a potential takeover of Paramount Global, which currently has an $11.4 billion market cap.
- Deadline reported that the chatter around the potential deal was “loose lipped” and that targeting Paramount’s Class A voting shares, 77% of which are owned by National Amusements, could give RedBird and Skydance control of Paramount without having to outright purchase it.
- Paramount Global’s Class A shares also traded high Friday, rising more than 10% and trading at around $21 per share.
- Paramount and RedBird didn’t immediately respond to Forbes’ request for comment.
Key Background
Paramount Global’s stock has slid from a string of highs it experienced in the first quarter of the year, peaking at $24.60 per share in late January and reaching a low of $10.70 by October. The company’s streaming platform, Paramount+, hit more than 63 million subscribers globally, according to its third quarter earnings, which also revealed $238 million in direct-to-consumer losses that were well below analyst expectations.
Paramount’s streaming service is in the process of growing amid a saturated streaming market that includes Netflix, Disney+, Hulu and other digital powerhouses. Paramount Global and Apple have discussed a bundle of their respective services at a discount, according to the Wall Street Journal.
The Journal reported that the combination would cost less than subscribing to each service individually, though discussions around such a move are in their early stages. Competitors Netflix and Max recently announced a bundle through a deal with Verizon, giving Verizon’s customers the ability to use both streaming platforms with ads for $10 a month. The bundle saves customers $7 a month for those already using ad-supported plans on Netflix and Max.
This article was first published on forbes.com and all figures are in USD.
