Tyler Perry Has Expressed Interest In Acquiring A Majority Stake Of Bet Media Group
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The market of streaming platforms is developing, and with it the interest in the shares of these companies is growing.
Tyler Perry and Paramount
Talks between Perry and Paramount come as the company is considering selling a majority stake in BET Media Group, which includes cable channels BET and VH1.
Perry and Paramount have a long-term relationship. The media mogul, which has its own production studio, has an overall deal to develop programming for Paramount and also has a minority stake in Paramount's BET+ streaming service.
The potential sale of a portion of the unit, which is intended primarily for a black audience, is part of the entertainment giant's efforts to bolster resources to bolster its flagship streaming service Paramount+ and advertiser-backed free-to-play streaming platform Pluto TV.
Perry is a prolific producer who has created over a dozen television series and over 20 movies. His credits include the "Madea" film series and TV shows such as "Sistas" and "Meet the Browns".
While BET and its BET+ streaming service have strong brands, it would be difficult to fold the service into Paramount+ as Mr. Perry owns a minority stake in the streaming platform, said people familiar with the matter. If the company sells the shares, it intends to maintain a commercial relationship with BET.
Paramount
Paramount had approximately 56 million Paramount+ subscribers as of December 31, and another 21.4 million subscribers to smaller subscription streaming services such as the Showtime and BET+ streaming service. The company does not disclose data on the number of BET+ subscribers.
Moreover, earlier this year, the company decided to move its Showtime streaming service to Paramount+ and rename Showtime's premium channel "Paramount+ With Showtime."
Rejected offer
David Nevins offered to buy Showtime for over $3 billion in recent weeks, but was rejected by Paramount executives.
Nevins, an experienced entertainment executive, offered to buy Showtime shortly after leaving Paramount Global, where he was president and CEO of Paramount Premium Group and creative director of storyboards for Paramount+. Nevins' approach, which was supported by private equity firm General Atlantic was the last of many offers Paramount had received for Showtime over the past few years.
Paramount has decided to keep the premium channel and streaming service while seeking savings and revenue from moving its Showtime streaming service to Paramount+ this year.
Other suitors include Mark Greenberg, another former Showtime executive.
Greenberg recently expressed interest in buying Showtime, but according to some people, the talks were not moving forward. People said this wasn't the first time Greenberg had taken this approach: About two years ago, Greenberg offered around $6 billion for Showtime in a deal backed by Blackstone Inc. Lions Gate Entertainment has also approached Paramount over Showtime's merger with Starz in recent years.
Paramount share prices
Since the beginning of this year, Paramount's shares have been on the rise, and in January they exceeded 20.00. At the beginning of February, the shares exceeded 25.00, but it did not manage to rise. Most recently, stock prices closed above 20.00 at 22.04.
Source: wsj.com, finance.yahoo.com
