Roku is reportedly considering major acquisitions, including the television network Paramount and streaming service Pluto TV. This move coincides with insights from the Wall Street Journal about Edgar Bronfman Jr., Fubo's Executive Chairman, preparing to submit a bid for Paramount.
Bronfman is collaborating with various investors, including Roku, to finalize this acquisition before the looming deadline on August 21, 2024. If the acquisition proceeds, Paramount would have to pay Skydance Media $400 million to break off their existing merger deal.
Earlier this year, Paramount and Skydance announced their merger plans, which would allow Skydance to assume majority control of Paramount. This powerful merger involves several major media assets, such as CBS, Paramount+, and Nickelodeon, totaling approximately $1.75 billion.
The collaboration between Paramount and Skydance is not new; they have already enjoyed successful partnerships with notable films like Top Gun: Maverick. Shareholders stand to gain between $15 and $23 per share based on class of stock owned.
This potential acquisition is noteworthy, as Paramount initially considered selling itself directly to Skydance, but later shifted to this deal. The transaction has various aspects, including completion protocols and regulatory evaluations.
Following the new agreement, David Ellison, the founder of Skydance, is set to become Paramount's majority owner. With the Redstone family still possessing control for the next 45 days, they can explore other bids before finalizing the merger with Skydance slated for August 2024.
While it remains to be seen whether Paramount will accept competing offers, current discussions highlight increasing consolidation within the media industry. This trend has significant ramifications for streaming partnerships and content distribution.
Roku's interest expands the company’s portfolio and could potentially reshape their content strategy, leaning more heavily on premium partnerships. Streaming platforms are forever changing, and how this latest undertaking impacts competition could be substantial.