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Future of Paramount+ among merger talks

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reminds me of the time when time warner and aol took over turner broadcasting in 2000 and aol time warner did not really know what to do with wcw aka world championship wrestling
 

The merger will eventually go through.

WBD and PSKY might have to slough off some companies in the process (they can do what Comcast did and parcel off their underperforming cable networks into a separate company).

The two companies combined have excess bulk that they can very easily discharge.
 

The merger will eventually go through.

WBD and PSKY might have to slough off some companies in the process (they can do what Comcast did and parcel off their underperforming cable networks into a separate company).

The two companies combined have excess bulk that they can very easily discharge.
Lots of layoffs and fewer films and TV series.
 
The SAG-AFTRA National Board adopted a resolution today publicly opposing the Paramount Skydance acquisition of Warner Bros. Discovery, asserting its support of the attorneys general from a dozen states who have filed suit to block this action. The union demands that the acquisition not proceed unless there are enforceable safeguards against reduced production by the studio, with guarantees of increases in the percentage of productions made in the USA.
 

The question of why Paramount is taking this path has several different answers, depending on who you speak to. Proceeding with the trial and not simply dropping the merger plans suggests Paramount still believes it can win in court. On the other hand, if the merger falls apart, Paramount has agreed to pay a $7 billion termination fee, which is brutal hit for a company that has a current market cap of just over $9 billion.

But sticking with the merger plans brings its own costs for Paramount. In the final merger papers with Warner Bros. Discovery, it agreed to pay a so-called "ticking" fee of $7.7 million a day beginning October 1st until the merger closes. So Paramount is apparently betting that taking a chance on the merger being approved and paying the ticking fee is a better choice than giving up now and paying the massive termination fee.
 
There's an article in this morning's Variety that says that there are some WBD executives are having second thoughts about the merger and who are hoping that the lawsuit filed by the states goes through and the merger is stopped.
 

The cable TV business, for so long a gusher for the media business, is inarguably past its prime.

But does that mean a single company should be allowed to own more than 50 networks and control more than one-quarter of the total revenue pie?

Fifty networks ... that is a problem. :shifty:
 
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