Edgar Bronfman Jr. eyes partnership with tech giants for Paramount
What's the story
Edgar Bronfman Jr., a seasoned media executive, is considering a strategic partnership with tech giants like Amazon or Apple to bolster Paramount Global's streaming TV business, according to Bloomberg.
This information comes from sources close to Bronfman, who recently submitted a bid for control of Paramount.
The sources revealed that Bronfman believes legacy media companies have not fully grasped the nuances of streaming, and that Paramount requires specific expertise in customer acquisition and ad sales.
Business performance
Paramount's streaming business performance and future plans
In the latest quarter, Paramount's streaming TV business generated $26 million in revenue from sales worth $1.88 billion.
Despite having a subscriber base of 68 million for its service, Paramount+, it trails behind competitors like Netflix and Walt Disney.
The company also incurred a significant charge of $5.98 billion against its cable TV channels, due to declining viewership and advertising as consumers increasingly shift toward streaming services.
Acquisition bid
Bronfman's bid for Paramount and partnerships
Bronfman has proposed a $6 billion deal to purchase National Amusements Inc., the Redstone family holding company that owns a majority of Paramount's voting stock.
He is also planning to buy additional shares of the company.
The final decision on his proposal is expected to be made by a special committee of Paramount's board on August 28.
Bronfman is also exploring potential partnerships with companies that could elevate Paramount's brand licensing for consumer products.
Leadership strategy
Leadership plans and potential collaborations
If Bronfman's bid is successful, he plans to assume the role of CEO while retaining the current co-CEOs.
He also intends to recruit Jon Miller, a former AOL executive, and John Martin, ex-chief of Turner Broadcasting for roles at Paramount.
Additionally, Bronfman is considering collaborations to reduce costs and has discussed with Roku about providing back-end technology for Paramount's streaming service.