Barry Diller, the media mogul and chairman of IAC, has expressed interest in acquiring National Amusements Inc., the company owned by Shari Redstone and the controlling shareholder of Paramount Global. Diller’s IAC, an internet media and publishing company, has signed a nondisclosure agreement and is currently examining the data room of National Amusements.
This development comes after National Amusements ended discussions with Skydance regarding a proposed merger with Paramount. The deal, which involved David Ellison’s Skydance and private equity firms RedBird Capital and KKR, was called off as it awaited approval from Redstone. National Amusements holds a 77% stake in class A Paramount shares.
Prior to terminating the merger, National Amusements had agreed to financial terms of the deal. The proposed agreement would have seen Redstone receiving $2 billion for National Amusements, with Skydance acquiring nearly 50% of class B Paramount shares for $15 per share (totaling $4.5 billion). Additionally, Skydance and RedBird had committed to contributing $1.5 billion in cash to Paramount’s balance sheet to help alleviate its debt.
The specific details of IAC’s potential bid are unknown at this time, but it would likely need to exceed $2 billion. The New York Times initially reported Diller’s interest in Paramount. While Diller is presently the chairman of IAC and Expedia, he has a significant background in the media industry, having previously served as the chairman and CEO of Paramount Pictures in the 1970s and 1980s. He then moved on to become the head of 20th Century Fox, where he approved popular Fox network programs like “The Simpsons.”
Diller has been vocal about his belief that legacy media companies, such as Paramount, should shift their focus away from competing with streaming giant Netflix and instead concentrate on their broadcast and pay-TV networks. Despite the rise of cord-cutting and the popularity of streaming services, Diller argues that traditional pay-TV remains profitable, unlike many streaming businesses. He encourages legacy media companies to invest in their traditional networks.
This potential bid by Diller is not the first time he has shown interest in Paramount. In the 1990s, he attempted to acquire the company but faced opposition from Sumner Redstone, Shari Redstone’s father and the previous owner of Paramount. Since then, Paramount has evolved and expanded its operations. The company now encompasses the movie studio, the CBS broadcast network, a range of cable TV networks including MTV and BET, and streaming services such as Paramount+ and Pluto.
While other potential buyers have reportedly expressed interest in acquiring Paramount, the company has been focused on restructuring its business. Under the leadership of the Office of the CEO, consisting of CBS CEO George Cheeks, Paramount Media Networks CEO Chris McCarthy, and Paramount Pictures CEO Brian Robbins, Paramount has been exploring joint venture opportunities in the streaming space, reducing costs by $500 million, and divesting noncore assets.
In conclusion, Barry Diller’s IAC is considering making a bid to acquire National Amusements Inc., which would give it control over Paramount Global. This development follows the termination of discussions between National Amusements and Skydance regarding a potential merger. Diller, with his extensive experience in the media industry, believes that legacy media companies like Paramount should prioritize their broadcast and pay-TV networks rather than trying to compete directly with streaming services like Netflix. While the details of IAC’s potential bid are unknown, it is clear that Paramount has been focused on restructuring its business and exploring streaming joint ventures.
