Last week, the media company filed an 8-K form with the U.S. Securities Exchange Commission that said top executives like CEO Bob Bakish, CFO Naveen Chopra, and executive vice president Christa D’Alimonte could get severance if they’re let go within two years “following the consummation of a change in control.”
On Monday, the Professional Fighters League (PFL) completed its purchase of Paramount’s Mixed Martial Arts company, Bellator. The deal was announced after Paramount said it was shuttering its Showtime sports division at the end of the year.
This year, “significant buyer interest” has seen Paramount’s stock to climb, according to Yahoo!Finance. Due to its smaller size, Paramount has historically been viewed as a potential acquisition target.
Paramount, like a majority of streaming services, has been struggling over the last few years. The loss of high viewership amid the pandemic in 2020, rising inflation rates, and increasing competition from other streamers has forced media companies to pare down workforce numbers, anticipate financial losses, and raise service prices.
The media company has taken a number of steps to keep itself afloat including relieving itself of “non-core assets.” For example, Paramount completed its sale of publishing company Simon & Schuster to investment firm Kohlberg Kravis Roberts last month. Rumors also suggest Showtime and BET Media Group could be for sale in the future.
Last month — before the actors strike resolved — Bakish said Paramount would continue to license content beyond its own channels, Advanced Television reported. As an example, Paramount unveiled a multi-year deal with Greek pay-TV service Cosmote TV.
Bakish said content licensing provides “a robust supply of content from diverse creatives to entertain consumers” and anticipates that Paramount will begin to recoup streaming losses next year.
