Former Paramount executive, David Nevins, was turned by his former employer in an offer to Showtime at $3B in recent weeks, according to people familiar with the deal.
Market shares for the company fell by 2.7% in the afternoon trading.
Nevins’ deal was backed by a private-equity firm, General Atlantic, that had made several offers to Paramount in the past few years for Showtime. Mark Greenberg, a former Showtime & Epix executive was among the suitors in the deal.
Paramount Global decision to hold onto Showtime included as a streaming option folding into Paramount+ as it’s seeking to save on costs and developing revenue, that was reported by The Wall Street Journal.
Paramount+ increased their subscription services that went from $4.99 to $.5.99 for the essential tier, that doesn’t include Showtime. Paramount +’s package to include Showtime went from $9.99 to $11.00, according to Deadline.
Paramount Global CFO, Naveen Chopra, anticipated a $700 million in annual savings in expenses, according to Deadline.
“A single service requires less content to acquire and retain subscribers than two independent services,” Chopra said.
The decision for Paramount not to sell the network made tough calls to view the competitive ever-changing media landscape included maintaining important shows that include “Billions” & “Yellowjackets”
Showtime included current and past prominent shows, such as “Homeland”, “Ray Donovan”, “Your Honor”, “The L Word”, and “Shameless. “Inside The NFL” once had a home on Showtime, but now can stream on Paramount+.
Paramount Global experienced loses in Q4 earnings amid major losses from heavy investment in content and marketing in attempt to build direct-to-consumer platforms.
Paramount is struggling to maintain its subscribers for its streaming service and vital advertising market. The company has project that negative cash flow would hit this year as it’s viewing the possibility of a positive cash flow and earning in 2024.
“We think there’ enormous value to unlock with the integration of Showtime and Paramount+,” Paramount CEO Bob Bakish said in the response, according to The Wall Street Journal.
Nevins offered to purchase Showtime after leaving the company along with the private-equity group. He was previously the chairman and chief executive of the Paramount Premium Group and the chief creative officer for scripted content for the streaming platform.
Greenberg also expressed interested in purchasing Showtime, but conversations didn’t advance, according to a company source. He offered around $6 billion for Showtime that was backed by a private-equity firm, Blackstone Inc.
Lions Gate Entertainment approached Paramount for the purchase of Showtime that included a merger with Starz, according to people familiar with the situation.
Paramount Global executive received calls from analysts about why the company folded Showtime into Paramount+. The company had received offers for Showtime, which they had turned down.
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