Recently, media mogul Barry Diller’s IAC has shown interest in acquiring National Amusements Inc., the company owned by Shari Redstone and the controlling shareholder of Paramount Global. While National Amusements previously halted talks with Skydance regarding a proposed merger with Paramount, discussions are now underway with IAC. Diller’s company has signed a nondisclosure agreement and is currently examining the data room of National Amusements, preparing to potentially submit a bid that could provide it with a controlling stake in Paramount.
Barry Diller, the chairman of IAC and Expedia, has a rich history in the media industry. In the 1970s and 1980s, he served as chairman and CEO of Paramount Pictures before moving on to lead 20th Century Fox. During his time at Fox, Diller was responsible for greenlighting popular programs such as “The Simpsons.” Despite his age of 82, Diller remains an influential figure in the media world and has been vocal about the shifting landscape of entertainment consumption.
Diller has emphasized the importance for legacy media companies, like Paramount, to pivot away from direct competition with streaming giants like Netflix. Instead, he advocates for a renewed focus on broadcast and pay-TV networks, highlighting their enduring profitability in the face of cord-cutting trends. During the Hollywood strikes, Diller reaffirmed his belief in the viability of traditional pay-TV models, contrasting them with the uncertain sustainability of many streaming services.
Paramount Global, formerly known as ViacomCBS, has undergone significant transformations in recent years. The company now encompasses not only the iconic movie studio but also the CBS broadcast network, a diverse array of cable TV channels including MTV and BET, and streaming platforms like Paramount+ and Pluto. Under the leadership of George Cheeks, Chris McCarthy, and Brian Robbins, Paramount has pursued strategic initiatives to adapt to the changing media landscape.
While Paramount has attracted interest from various suitors, including the recent attention from IAC, the company remains focused on optimizing its operations. By appointing the “Office of the CEO” consisting of Cheeks, McCarthy, and Robbins, Paramount has streamlined decision-making processes and prioritized partnerships in the streaming space. Cost-cutting measures and divestment of noncore assets have been key strategies in Paramount’s efforts to strengthen its position in the evolving industry.
Barry Diller’s potential bid for National Amusements Inc. and the subsequent impact on Paramount Global signifies a new chapter in the company’s trajectory. As legacy media companies navigate the complex terrain of digital disruption, strategic alliances and operational efficiencies will be crucial in ensuring long-term success. The evolving media landscape presents both challenges and opportunities for industry players like Paramount, encouraging innovation and adaptability in a competitive environment.