(Bloomberg) — Paramount Global is talking to potential partners for its international streaming TV business, saying a deal could “dramatically transform” the online service.
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Co-CEO Chris McCarthy made the announcement Tuesday during a town hall meeting with employees. He said a tie-up could change the “scale and economics of the service, making it profitable and generating long-term value”.
The partnership could also serve as a model for what the company does with its Paramount+ service in the United States, he said.
The company’s three co-CEOs addressed employees two months after being named to replace Bob Bakish. Earlier this month, Paramount majority shareholder Shari Redstone turned down a merger offer from independent producer David Ellison’s Skydance Media.
Co-CEO Brian Robbins addressed the merger discussions at the start of the meeting.
“While we can’t say the noise will go away, we are here today to present a plan for the future that can set us up for success, whatever path the company chooses to follow,” he said. he declared.
The trio highlighted progress made on plans announced at the company’s annual general meeting earlier this month. These plans include a $500 million cost reduction and additional asset sales.
George Cheeks, the third co-CEO, said Paramount had hired investment bankers to sell some assets and the proceeds would be used to reduce debt.
Paramount, the parent company of CBS, MTV and other media companies, this week raised prices for its streaming service, including a 33% hike in the ad-supported version of Paramount+ to $8 per month , from August for new customers.
Bloomberg reported in May that the company was in discussions with Amazon.com Inc. about a partnership.
Paramount’s Class B shares were down 2.2% at $10.07 as of 1:30 p.m. in New York. On Monday, Goldman Sachs Group Inc. reinstated coverage with a sell recommendation on the stock, setting a price target at $9.50.
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