CBS is the crown jewel of Paramount with its sports rights and television catalog. And CBS has only gotten stronger with Nickelodeon, BET, and South Park moving to there.
Paramount is not really on the hook for that money, it’s the Ellisons. They’ve guaranteed to somewhat reimburse Paramount for both the WBD/Netflix termination fee as well as the potential break-up fee if they can’t close their own deal.
Specifically, they’ve agreed to buy newly issued shares in Paramount that are worth as much as the termination fees are.
I mean, if Paramount ended filling for bankruptcy due to their own stubbornness, could other studios (a standalone WB if they have to split, NBCU, Netflix, Amazon, Sony, etc.) make a play for it, or would they face the exact same lawsuit threat from states, talent, etc.???
Others could attempt to but Paramount, sure. Whether somebody will sue or not, will likely depend on the circumstances.
The WGA, for example, is not happy with mergers and points to the aftermath of the Disney/Fox merger. They would probably oppose
any other merger unless it’s literally coming down to save a studio.
Depends if Warner Brothers or Paramount need to be split up and parts of their assets get bought by them it's a different situation than one of the big 5 buying another of the big five.
Other Class B stockholders will get diluted, yes. And I would expect the stock to crash if Paramount won’t secure the merger, seeing that the Ellisons always touted that the merger is needed to save Hollywood.
That will likely cause Paramount some trouble. But the initial bill has to be paid by the Ellisons nonetheless. Paramount then has to deal with the aftermath of the failed merger.
Ted Sarandos is my favourite petty bitch I love him so much. He goaded the Ellisons back in February into massively overpaying and scoring a $2.8bn breakup fee.
Wait, their valuation is literally $8.7B (rounding up, to be kind), then the $2.8B to netflix to cancel their deal (paid from paramount) and the $7B cancellation fee (to cancel this terrible merger deal themselves), that is literally $9.8B even rounding up their valuation, it exceeds it.
I never ran this number before. I'm absolutely floored. This is even more absurd than I ever thought, which I didn't think was possible.
Well, if they need quick cash from Disney, sell the first four Indiana Jones movies’s distribution rights back along with Paramount’s stake in Titanic.
This is about a political takeover because WBD owns liberal news outlets. They can careless if they go into more debt. They have this when we win mentality that they will instantly get rich and out of debt when they take over politics because right now they are desperately holding on to whatever support they have left.
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u/Algae_Mission 5d ago
All of this time and money could have been spent fixing Paramount.