Paramount Talks With Potential International Streaming Partners

(Bloomberg) — Paramount Global is talking to potential partners for its streaming TV business internationally, saying a deal could “significantly transform” the online service.

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Co-Chief Executive Officer Chris McCarthy made the announcement Tuesday at a town hall with employees. He said a tie-up could alter “the scale and economics of the service, making it profitable and driving long-term value.”

The partnership could also serve as model for what the company does with its Paramount+ service in the US, he said.

The company’s three co-CEOs addressed employees two months after they were named to replace Bob Bakish. Earlier this month, Paramount’s controlling shareholder, Shari Redstone, turned down a merger offer from independent producer David Ellison’s Skydance Media.

Co-CEO Brian Robbins addressed the merger discussions at the start of the meeting.

“While we cannot say that the noise will disappear, we are here today to lay out a go-forward plan that can set us up for success no matter what path the company chooses to go down,” he said.

The trio emphasized progress made with plans announced at the company’s annual meeting earlier this month. Those include $500 million in cost cutting and additional asset sales.

George Cheeks, the third co-CEO, said Paramount has hired investment bankers to sell certain assets and that the proceeds will be used to reduce debt.

Paramount, the parent of CBS, MTV and other media businesses, raised the prices on its streaming service this week, including a 33% hike in the ad-supported version of Paramount+ to $8 a month, starting in August for new customers.

Bloomberg reported in May that the company was in discussions with Amazon.com Inc. about a partnership.

Class B shares of Paramount were down 2.2% to $10.07 at 1:30 p.m. in New York. On Monday, Goldman Sachs Group Inc. reinstated coverage with a sell recommendation on the stock, setting a price target of $9.50.

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