Tyler Perry expressed interest in buying majority stake of BET media group from Paramount Global
Potential sale of part of parent of BET and VH1 would help Paramount shore up resources for streaming
Paramount CEO sees 'very strong future' in TV, movie streaming
Paramount Global President and CEO Bob Bakish says the film industry giant is 'in the middle of a transformation.'
Actor and producer Tyler Perry has expressed interest in acquiring a majority stake of BET Media Group from Paramount Global according to people familiar with the situation.
Mr. Perry and Paramount have had a longstanding relationship. The media mogul, who has his own production studio, has an overall deal to create shows for Paramount and also has a minority stake in Paramount’s BET+ streaming service.
The discussions between Mr. Perry and Paramount come as the company is considering selling the majority stake in BET Media Group, which includes the cable channels BET and VH1, people familiar with the matter said. A potential sale of part of the unit, which caters primarily to Black audiences, is part of the entertainment giant’s effort to shore up resources to bolster its flagship Paramount+ streaming service and its advertiser-supported free streaming platform Pluto TV, some of the people said.
Tyler Perry (Evan Agostini/Invision/AP, File)
Paramount, which also owns CBS, MTV, Nickelodeon and Paramount Pictures, has made strengthening Paramount+ a priority as it seeks to compete with other major streaming services such as Walt Disney Co.’s Disney+, Netflix Inc. and Warner Bros. Discovery Inc.’s HBO Max.
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Earlier this year, the company decided to fold its Showtime streaming service into Paramount+ and rebrand the Showtime premium channel as "Paramount+ With Showtime," as The Wall Street Journal earlier reported. The company has said it made the move to help lower costs and present one signature streaming service in a crowded streaming market.
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| PARA | PARAMOUNT GLOBAL | 10.88 | -0.21 | -1.89% |
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| NFLX | NETFLIX INC. | 897.79 | +0.31 | +0.03% |
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Although BET and its streaming service BET+ have strong brands, it would be challenging to fold that service into Paramount+, because Mr. Perry owns the minority stake in the streaming platform, people familiar with the matter said. If the company does sell the stake, it intends to maintain a commercial relationship with BET, said one of the people.
Mr. Perry is a prolific producer who has made more than a dozen television series and more than 20 movies. His credits include the "Madea" movie franchise and television shows such as "Sistas" and "Meet the Browns."
TODAY -- Pictured: Tyler Perry on Monday, January 13, 2020 (Nathan Congleton/NBC/NBCU Photo Bank via Getty Images / Getty Images)
Byron Allen, a media entrepreneur whose Allen Media Broadcasting owns such assets as The Weather Channel and several local television stations, also said through a spokesman that he is interested in acquiring control of BET.
BET Studios, a production arm of BET, also has minority stakeholders including producers Kenya Barris, Rashida Jones and Aaron Rahsaan Thomas.
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Paramount had about 56 million subscribers to Paramount+ as of Dec. 31, and another 21.4 million subscribers to its smaller subscription streaming services, such as its Showtime streaming service and BET+. The company doesn’t break out subscriber figures for BET+ specifically.
Founded in 1980 by Robert Johnson with backing from cable mogul John Malone, Black Entertainment Television was the first national programming service primarily targeting Black viewers. Viacom, which is now called Paramount Global, acquired BET in 2000 for $2.3 billion in stock and the assumption of $570 million in debt.
Robert Johnson, founder of Rlj Cos. and co-founder of Black Entertainment Television (BET), speaks during an executive order signing in the Roosevelt Room of the White House in Washington, D.C., Dec. 12, 2018. (Joshua Roberts/Bloomberg via Getty Images)
Besides looking to unload assets that may prove challenging to incorporate into Paramount+, Paramount Global wants to shore up its balance sheet. Paramount has said the company expects 2023 to be the peak year in spending and that next year the company will hit positive cash flow and earnings growth.
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One asset Paramount declined to sell despite a strong offer is Showtime. Earlier this year, the company turned down a more than $3 billion offer to sell the premium channel to David Nevins, who oversaw Showtime and had backing from private-equity firm General Atlantic.