Even though Shari Redstone has inked a deal with David Ellison’s Skydance Media to relinquish control of Paramount Global, the company has until Aug. 21 to mull any other takeover options during a “go-shop” window. But one contender that had been considered a serious suitor has reiterated that it won’t be making another proposal for Paramount.
“At this point in time … it does not fit well with our strategy, and that is a judgment that we have handed down,” said Sony president, COO and CFO Hiroki Totoki during an Aug. 7 earnings call when asked whether the company would make another proposal for the Redstone-controlled film and TV empire.
The exec later added of Paramount, “If we have to acquire the entire organization, it would be quite risky because our capital allocation itself — it may not be well fitted to our capital allocation strategy.”
Earlier in the sales process, Sony had engaged Apollo Global Management about making a joint bid for Paramount. On July 7, a deal between a consortium led by Skydance and Gerry Cardinale’s RedBird Capital was announced with Redstone’s National Amusements, which holds a controlling stake in Paramount. The agreement will effectively merge Skydance with the owner of Paramount Pictures, Paramount+, CBS, Showtime, Nickelodeon, MTV and Comedy Central.
On its quarterly earnings call, Sony execs talked up its Pictures segment and The Garfield Movie (which grossed $225 million globally) and Bad Boys: Ride or Die ($398 million), which were both released in its latest fiscal quarter.
“In the first half of the calendar year 2024, theatrical box office revenue in the U.S. remained at a level approximately 20 percent lower than the previous year, primarily due to the impact of the strikes,” said Sony svp Sadahiko Hayakawa. “However, from June onwards, the release of tentpole films from major studios, including ours, has increased, and we expect box office revenue to gradually improve.”
Sony also stated that its anime streaming service Crunchyroll, which it acquired in 2021, has now hit 15 million subscribers as of July. And the company stated that the service could have synergies with its new acquisition, the boutique theater chain Alamo Drafthouse Cinema, which has 41 locations in the U.S. and 4 million loyalty members, as part of its newly launched Sony Pictures Experiences division.
On the Pictures segment, Sony highlighted that its upcoming feature, It Ends With Us (Aug. 9), starring Blake Lively, had hit 130 million trailer views within a day.