Ought to Sony and Apollo get their hooks into Paramount International their technique could be to maintain theatrical launch output regular between each studios –not lowered– whereas slicing the extra burdonsome elements of the conglom, learn auctioning off CBS, the linear channels like MTV and Paramount Plus streaming service.
The information about theatrical output is per Deadline tonight, whereas the New York Instances reported earlier Sony and Apollo’s plans to chop Paramount’s TV belongings of their $26 billion bid for the leisure firm. Per the NYT, Sony hasn’t shared their plan with Paramount and its consiglieres who selected Might 4 to carry separate talks with Sony/Apollo and continued negotiations with David Ellison’s Skydance/Purple Hen.
Many have identified {that a} Sony merger with Paramount would put the previous beneath scrutiny with the FCC as international owned congloms aren’t allowed to personal U.S. broadcast stations.
Per Deadline’s sources, many have in Hollywood together with exhibitors concern a Sony-Paramount merger, many having PTSD of the 2019 Disney-Fox merger and the lowered output of movies which have resulted from that: Throughout twentieth Century Studios, Searchlight and Disney, there’s solely 12 titles for 2024. With large releases (pics enjoying in north of 1,000 theaters) round 83 titles this yr, exhibition can’t take one other lack of a serious studio and roughly ten movies misplaced from {the marketplace}. They’re already scrapping by submit strikes and Covid.
Massive Sony is placing out 15 motion pictures this yr and Paramount one other ten. Sources inform Deadline that the plan wouldn’t be for a Sony-Paramount merger to reduce, slightly as much as compete with the streamers. They wouldn’t observe within the footsteps of Disney-Fox’s practices; no less than that’s the plan proper now. It’s the primary motive why Sony goes after Paramount to make a 1 + 1 studio equation= 4.
In the meantime, per NYT, neither Sony or Paramount have inked formal nondisclosure agreements or begun any cracking of the books, a formality that would take weeks. A Sony Paramount combo would see the previous Culver Metropolis lot working the mixed entity as a three way partnership with Apollo taking a small stake which may very well be bought down the highway to Sony or one other purchaser. Advertising and distribution ops could be merged.
Some near the Paramount consider there’s a 3rd possibility and that’s that Shari Redstone goes it alone, and doesn’t make a cope with Sony/Apollo or Skydance. How lengthy can that final stays the query.
Sony is named an arms seller of content material, licensing motion pictures and TV exhibits to Netflix and Disney. The studio has a wealthy pay one cope with Netflix. That technique would stay unchanged with the addition of Paramount, the concept that the Melrose Ave lot’s OTT service could be unloaded to Comcast’s Peacock or Warner Bros Discovery’s Max.
The Sony Apollo deal would require the OK from the Justince Division’s Antitrust division, the FTC and FCC. The present President Biden administration is understood to be anti-merger, significantly horizontal ones the place jobs could be impacted.