Paramount Reportedly Dropped Plans to Sell Its Shares in Bet

Paramount Global has decided to abandon its plans to divest its majority stake in BET Media Group, as reported by the Wall Street Journal on Wednesday evening.

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According to the Journal, Paramount (PARA, -1.93%) communicated to potential buyers on Wednesday that it had chosen to terminate the sales process. This decision was reached after Paramount assessed that the sale would not lead to a substantial reduction of its debt burden.

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Notable bidders for the media conglomerate, encompassing cable channels BET and VH1 along with streaming service BET+, reportedly included prominent figures such as actor and producer Tyler Perry, rapper Sean "Diddy" Combs, and a consortium led by former basketball star Shaquille O'Neal, writer and producer Kenya Barris, and rapper 50 Cent. The bids were estimated to range from approximately $2 billion to around $3 billion.

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As Paramount possesses other major holdings, such as CBS, MTV, and Nickelodeon, it has been strategically divesting certain assets to redirect its focus towards its flagship streaming platform, Paramount+, which recently merged with Showtime earlier this year. In a recent transaction, Paramount also sold its publishing house, Simon & Schuster, to private equity firm KKR.

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The performance of Paramount's shares has experienced an 11% decline year-to-date and a notable 43% drop over the past 12 months. In contrast, the broader market gauge, the S&P 500 (SPX), has advanced by 15% within the year and has achieved a 3% gain over the past year.

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