Legendary media mogul Barry Diller is taking another crack at Paramount, the studio that received away.
Within the early Nineteen Nineties, Diller misplaced a bid to purchase the studio — to then-Viacom chief Sumner Redstone.
Now 82, Diller is again within the sport, exploring a bid to take management of a far more-troubled Paramount International, a person with data instructed TheWrap on Monday.
Diller’s firm IAC has signed nondisclosure agreements with Nationwide Amusements, the holding firm of Paramount’s controlling shareholder Shari Redstone, a person confirmed to TheWrap. The New York Occasions first reported the story.
The potential bid comes after Redstone, who’s Sumner Redstone’s daughter, scrapped a deal with David Ellison’s Skydance Media final month to accumulate NAI and merge with the Hollywood studio. Whereas either side agreed to the financial phrases of the deal, there have been excellent points they didn’t agree on — most notably, giving all shareholders a consent vote on the sale.
Representatives for Nationwide Amusements, Paramount and IAC all declined to remark to TheWrap. Diller was stated to be out of attain on a yacht in Europe – as media moguls are supposed to be in July.
The emergence of Diller, a billionaire who led Paramount Photos within the heyday of broadcast tv within the Seventies and Eighties, may very well be the lacking hyperlink for Shari Redstone. She initially favored a take care of Skydance as a result of Ellison supplied extra guarantees of preserving the corporate collectively — although the deal was far less-lucrative for Paramount shareholders than a $26 billion all-cash bid by an alliance of Sony Photos Leisure and Apollo International Administration.
Redstone’s need to maintain the corporate largely intact — moderately than permitting it to be bought for components as Wall Road analysts have speculated it must be — has featured prominently in negotiations amongst potential consumers, Nationwide Amusements and Paramount’s particular board committee evaluating offers.
However Diller has particular historical past with this studio.
He was CEO of Paramount Photos from 1974 to 1984. Beneath his tenure, the studio produced in style TV sequence resembling “Laverne & Shirley” and “Cheers” and movies together with “Saturday Night time Fever,” “Grease” and “Raiders of the Misplaced Ark.”
In 1983, he was additionally named president of the corporate’s Leisure and Communications Group, which included Simon & Schuster, Inc., Madison Sq. Backyard Company and SEGA Enterprises, Inc.
Then from 1984 to 1992, Diller left, serving as chairman and CEO of Fox Inc. and was liable for creating Fox Broadcasting Firm along with Fox’s movement image operations.
Within the early ’90s, he made his unsuccessful bid for Paramount Communications. On the time, referring to Redstone’s successful supply to purchase the legendary studio from Gulf+Western, Diller stated in an announcement: “They received. We misplaced. Subsequent.”
Diller can be credited with mentoring a stellar group of Hollywood executives, dubbed “The Killer Dillers,” who later turned energy brokers themselves. They included Michael Eisner, who was president of Paramount Photos and later chairman and CEO of Disney; Jeffrey Katzenberg, Paramount’s head of manufacturing beneath Diller after which a co-founder of DreamWorks SKG; and Daybreak Metal, who went on to function president of Columbia Photos.
In 1995, Diller based IAC, an web and media conglomerate that owns manufacturers throughout 100 international locations, together with platforms like Tinder, print and digital writer Dotdash Meredith and the web site Care.com. The corporate acquired the property of Silver King Broadcasting in 1996, which owned the Residence Buying Community, and USA Community in 1997. He’s at present the chairman and senior govt of IAC and Expedia Group.
Forbes has pegged Diller’s internet value at $4.1 billion.
Paramount nonetheless in play
Paramount has been in play since final yr. Skydance had an unique 30-day negotiating window with Nationwide Amusements, however final month Redstone determined she not wished to proceed with a deal. NAI controls some 77% of Paramount’s voting inventory.
Along with Skydance and the Sony-Apollo bid, Allen Media Group founder Byron Allen additionally positioned a $30 billion bid together with debt, although it’s unclear how that bid can be financed. Warner Bros. Discovery CEO David Zaslav additionally has met with former Paramount CEO Bob Bakish a few potential merger, however these talks had been later halted.
Individually, NAI has obtained two separate expressions of curiosity from “Child Geniuses” producer Steven Paul and former Warner Music Group CEO and chairman Edgar Bronfman Jr.
In line with a person near Redstone, all three bids are at present in play.
Whereas Redstone weighs her choices, Paramount is at present being run by three co-CEOs —Brian Robbins, Chris McCarthy and George Cheeks — who changed Bakish after he stepped down in April.
The trio has outlined a long-term strategic plan that features $500 million in price cuts, divesting property and teaming up with different streamers or expertise platforms on a streaming three way partnership or long-term partnership. CNBC reported on Monday that Warner Bros. Discovery is among the many firms contemplating a possible streamer merger with Paramount+ and Max.
Throughout a city corridor with workers final week, the Paramount executives revealed they’ve began reducing prices, together with in authorized and company advertising and marketing, although they didn’t reveal a timeline nor affirm what number of workers may very well be impacted.
They’ve additionally employed bankers to assist with asset gross sales, which may doubtlessly embrace Pluto TV, BET, VH1 and the Paramount studio lot, which might be leased again for the studio’s use, 4 people aware of the matter beforehand confirmed to TheWrap.
The corporate additionally stated it was persevering with talks with potential companions in worldwide markets that may “considerably rework the dimensions and economics” of its streaming enterprise, which is at present on monitor to succeed in home profitability in 2025.
Paramount, which has a market capitalization of $6.97 billion, noticed its shares climb over 3% in after-hours buying and selling on Monday. The inventory has fallen 29% previously six months and 37% previously yr. The corporate additionally faces $14.6 billion in long-term debt and its credit standing has been downgraded to junk standing.
Paramount’s co-CEOs will replace Wall Road on its long-term strategic plan throughout its second quarter earnings name.
Extra reporting by Sharon Knolle, Lucas Manfredi and Sharon Waxman.