As soon as once more, Paramount International is the topic of hypothesis in Hollywood and Wall Avenue. There are credible stories {that a} controlling stake within the media company that produces and distributes Star Trek is up on the market.
Management of Paramount International could possibly be altering
The most recent spherical of hypothesis within the media began with a report by trade watcher Puck relating to how Shari Redstone is contemplating promoting her controlling stake in Paramount International. Redstone (by way of her firm Nationwide Amusements) owns 10% of Paramount International, however (extra importantly) 80% of the voting shares within the media firm. In line with the report, which has subsequently been backed by the Wall Street Journal and others, Skydance Media (owned by David Ellison) and personal fairness agency RedBird Capital are in early talks with Redstone. Skydance has had an extended relationship with Paramount, co-producing plenty of blockbuster motion pictures, together with the final two Star Trek characteristic movies and are additionally on board for Star Trek 4. The Wall Avenue Journal stories Redstone has additionally met with Activision CEO Bobby Kotick, who will quickly be departing Activision with $400 million following the corporate’s current acquisition by Microsoft. So it seems she is not less than contemplating promoting her stake in Paramount.
Shopping for out Redstone is seen as a less expensive approach to get management of Paramount International with out having to buy the corporate (and its money owed) outright. The expectation is that these traders want to get entry to elements of the corporate and unload others. Within the case of Skydance, it’s been reported Ellison is most thinking about taking up Paramount Photos, CBS Studios, and all their mental property however isn’t within the CBS broadcast community, the cable channels, or the streaming elements Pluto and Paramount+, dwelling to authentic Star Trek programming. An analyst from Wells Fargo means that Paramount+, which has but to show a revenue, could possibly be shut down and different undesirable property can be offered off. What remained might then be merged with Skydance forming a brand new production-focused studio proudly owning all of Paramount’s properties, together with Star Trek.
Because the re-merger of Viacom and CBS in 2019 (creating what’s now Paramount International) the company has struggled because it took on extra debt to battle within the streaming wars. The inventory has underperformed towards different media corporations, though it has seen a leap in the previous couple of days as a result of discuss of a sale. Shari Redstone’s purpose has been to show the media firm into a pretty takeover goal for a bigger entity, primarily retaining the corporate and her household’s legacy collectively. In line with the New York Times, Redstone held talks about such an acquisition with tech giants Amazon and Apple in addition to Netflix earlier this yr. The Hollywood trades have additionally speculated that there could possibly be a take care of Warner Bros. Discovery, Comcast, or one other media firm. It’s nonetheless potential a giant deal like that would occur. Paramount is contemplating shedding 1,000 staffers in early 2024 to chop prices, making it a extra enticing takeover goal. Paramount CEO Bob Bakish and different execs indicated they see some form of deal coming once they lately adopted new (and really profitable) severance packages for themselves which might be triggered within the occasion they have been let go following an acquisition.
Paramount International chairwoman and president of Nationwide Amusements Shari Redstone
What this implies for Star Trek
All through the historical past of the Star Trek franchise beginning again when it was owned by Desilu within the Sixties, it has seen a number of adjustments in possession, company construction, and administration. It appears believable if not possible extra adjustments are coming, probably in 2024. What makes any new adjustments in management totally different this time is how tied Star Trek has grow to be to Paramount+, beginning with Star Trek: Discovery (which wraps up subsequent yr) and together with 4 lively initiatives on the streaming platform (Unusual New Worlds, Decrease Decks, Starfleet Academy, and the Part 31 film). The service has grown to 63 million subscribers with prices taking place however it has but to show a revenue. Nonetheless, even when Paramount+ have been shut down, any new homeowners will surely look to license the favored content material. This would definitely embody the Star Trek library and sure some or the entire lively Star Trek initiatives as properly. This course of could possibly be seamless, however we might additionally see Star Trek content material grow to be unavailable for streaming briefly whereas new licensing offers have been struck, as we noticed this yr with Prodigy.D epending on the client, Paramount+ might additionally find yourself being merged with one other streamer, like Peacock, Prime Video, or Apple+, which might simply transfer the Star Trek content material to the newly merged streaming platform.
The brand new homeowners of Paramount might additionally look to license model new Star Trek content material to different streamers or channels. The truth is, transferring again to licensing and co-productions is seen as the brand new development for streaming corporations seeking to minimize prices, in response to a report immediately in Variety. There’s additionally a development again in the direction of bundling, together with stories that Apple and Paramount are already in talks on a Paramount+/Apple+ bundle, though that may be extra about advertising than really combining apps and content material.
Within the case of a sale and divestiture of property, what stays of Paramount might emerge stronger. As famous by a Wells Fargo analyst, “Submit very vital asset gross sales, Paramount New Firm could possibly be a pretty progress/content material firm.” This new Paramount would personal the Star Trek library and rights and can be producing and licensing Star Trek content material. As famous earlier, Skydance has been working with Paramount Photos on the current Star Trek motion pictures and David Ellison (seen under on the Past premiere) is credited as an government producer. Ellison additionally has a connection to Alex Kurtzman who’s presently in control of Star Trek TV for Paramount. Again in 2011, Kurtzman (and his former companion Roberto Orci) held talks to merge their manufacturing firm Okay.O. Paper Merchandise with Skydance. In the long run, a brand new Skydance/Paramount with a company deal with content material creation could possibly be excellent news for Star Trek.
For now, it’s too early to even predict what’s going to occur. It’s potential that Redstone, who has confirmed to be cussed prior to now, isn’t capable of finding a deal that works for her. In that case, Paramount International will wrestle on because it tries to make its streaming service worthwhile whereas shepherding its legacy companies dealing with tough market developments. Regardless, it seems adjustments are coming for Paramount and there’ll probably be some ripple impact on Star Trek. So keep tuned to TrekMovie for all the newest.
