Skydance Media and RedBird Capital Partners Outline Strategy for Paramount Global Merger

In a recent announcement, Skydance Media and RedBird Capital Partners executives detailed their strategic approach to Paramount Global’s streaming business following a merger agreement. The executives emphasized their commitment to revitalizing Paramount+, Pluto TV, and BET+, which currently comprise Paramount’s direct-to-consumer (DTC) offerings that have yet to achieve profitability. Skydance’s Ellison expressed confidence in leveraging technological capabilities and industry relationships to enhance the DTC business. RedBird Capital’s Jeff Shell, who is set to become the president of the merged entity, highlighted the importance of evaluating content monetization strategies. He indicated that the "New Paramount" will assess which content to license internally versus externally, aiming to optimize revenue generation from its offerings. This strategic review is part of a broader plan to strengthen the company’s position in the competitive streaming landscape. Executives also discussed the potential for partnerships with other streaming platforms, noting the growing trend of service bundling in the industry. Shell mentioned that a simplified bundling solution is on the horizon, reflecting a shift towards collaborative streaming packages, similar to those created by competitors like Discovery with Disney+, Hulu, and Max. The merger is expected to finalize in the first half of 2025, contingent upon regulatory approvals and the absence of alternative offers during Paramount's 45-day "go-shop" period. The enterprise value of the newly formed Paramount is estimated at approximately $28 billion, following renewed interest from various bidders.