A recent development in the media industry has caught the attention of many as media mogul Barry Diller, through his company IAC, is considering acquiring National Amusements Inc. which is owned by Shari Redstone. This move, if materialized, could potentially give IAC a controlling stake in Paramount. The news of Diller’s interest comes after National Amusements halted talks with Skydance regarding a proposed merger with Paramount.
Barry Diller, who is currently the chairman of IAC and Expedia, has a rich history in the media industry. He previously served as the chairman and CEO of Paramount Pictures in the 1970s and 1980s, followed by a tenure at 20th Century Fox. Diller has been a strong advocate for legacy media companies to prioritize their broadcast and pay-TV networks over chasing streaming giants like Netflix. He firmly believes that traditional pay-TV networks still hold profitability unlike most streaming businesses, especially during the rise of cord-cutting trends.
Paramount’s Evolution and Current Focus
Over the years, Paramount has undergone significant changes and expansion. The company now includes the movie studio, CBS broadcast network, a range of cable TV networks like MTV and BET, and streaming services such as Paramount+ and Pluto. Despite attracting interest from other potential suitors, Paramount has been primarily focused on restructuring its business. Under the leadership of the Office of the CEO, which comprises CBS CEO George Cheeks, Paramount Media Networks CEO Chris McCarthy, and Paramount Pictures CEO Brian Robbins, the company has been exploring joint venture opportunities in the streaming space, cutting costs by $500 million, and divesting non-core assets.
While the specifics of IAC’s potential bid for National Amusements Inc. remain undisclosed, industry insiders speculate that it would likely exceed $2 billion. This bid, if successful, could result in IAC acquiring a significant stake in Paramount, thus reshaping the dynamics of the media landscape. Diller’s interest in Paramount is not new, as he previously attempted to acquire Paramount Pictures in the 1990s but faced challenges from Sumner Redstone, the father of Shari Redstone.
Barry Diller’s consideration of acquiring National Amusements Inc. and potentially gaining control of Paramount signifies a major development in the media industry. With his extensive experience and vision for the future of legacy media companies, Diller’s entrance into the Paramount ownership conversation could lead to significant changes and opportunities for the iconic media conglomerate.