Paramount Looking to Slash $500M In Costs

Paramount Global Tuesday revealed its business plan during a stockholders metting. The pln comes amid ongoing discussions about a potential sale. 

Here are the key points:

Cost Cuts and Layoffs: Paramount’s new management structure, led by division heads George Cheeks, Brian Robbins, and Chris McCarthy, aims to implement $500 million in cost cuts. This includes undisclosed layoffs.

Asset Sales: The company is exploring the sale of certain assets to improve its financial position.

Paramount+ Streaming Service: The trio at the helm is also considering a joint venture for Paramount’s streaming service, Paramount+.

Despite past challenges, including underinvestment and shifts in audience behavior, Paramount aims to unlock significant value. However, the sale process is still ongoing, and any deal with David Ellison’s Skydance Media awaits approval from controlling shareholder Shari Redstone

Once a colossus of the entertainment industry, the Redstone family-controlled enterprise has fallen behind its traditional rivals, including Walt Disney Co. and Comcast, as well as upstart tech companies including Amazon and Netflix, according to The L-A Times.

Years of underinvestment, mismanagement, titanic shifts in audience behavior, the COVID-19 pandemic and a costly push into streaming have diminished its standing. Its once vibrant cable channels, including Comedy Central, MTV and Nickelodeon, have dimmed in reputation and ratings. Exacerbating its debt issues, Bakish passed up opportunities to sell assets, including Showtime and BET.

Last year’s strikes by the Writers Guild of America and SAG-AFTRA slowed the content pipeline.