((Automated translation by Reuters, please see disclaimer https://bit.ly/rtrsauto))
(Updated paragraph 1 with change in source of supply) by Dawn Chmielewski
Digital media conglomerate IAC
Billionaire Barry Diller’s IAC.O is considering a bid to take control of Paramount Global PARA.O , a person familiar with the matter told Reuters on Monday.
IAC has entered into nondisclosure agreements with National Amusements, which owns the Redstone family’s majority stake in Paramount, the person said.
Shari Redstone, the majority shareholder of National Amusements, abruptly ended negotiations with David Ellison’s Skydance Media last month, canceling the potential sale of a stake in Paramount Global to the independent studio.
IAC said it does not comment on rumors or speculation, while Reuters could not immediately reach Mr. Redstone for comment.
Earlier today, CNBC reported that Paramount was in talks with other media and technology companies to determine a viable structure in which its Paramount+ streaming platform could be merged with another streaming entity and potentially co-owned.
Fears of market saturation have forced media companies to consolidate their streaming businesses and offer discounted rates to attract customers who are reluctant to sign up and pay for multiple individual services.
Warner Bros Discovery WBD.O is one of the companies that has expressed interest in a joint venture, merging its Max and Paramount+, CNBC added.
Paramount and Warner declined to comment on the report.
While the structure of a hypothetical joint venture between Paramount and Warner was not discussed in detail, ownership would likely not be split 50-50, given the existing nature of the streaming assets and their finances, the report said.
Paramount’s streaming service has more than 71 million subscribers, far fewer than Netflix’s 269.60 million and Warner’s 99.6 million.
