Los Angeles, California – Paramount has secured a new multi-year distribution deal with Charter Communications in a significant move for the company as it navigates potential buyout offers from Skydance Media, Apollo Global, and Sony. The agreement, announced on Thursday, ensures that Charter will continue to carry all of Paramount’s networks, including Showtime, CBS, and Paramount+. Additionally, subscribers to Charter’s largest tier will receive the ad-supported versions of Paramount+ and BET+ at no extra cost.
Financial details of the deal remain undisclosed, but industry analysts view this agreement as a strategic win for Paramount. According to MoffettNathanson analyst Robert Fishman, the deal helps Paramount avoid significant risks to its revenue and EBITDA, particularly in the face of Charter’s negotiating power.
This agreement comes in the wake of high-profile disputes between other media giants like Disney and Charter Spectrum, which resulted in channel blackouts and disruptions for consumers. Last year, Disney removed its owned and operated channels, including ESPN and ABC, from Charter Spectrum systems during a distribution agreement impasse. The resolution eventually came with Charter offering select Disney streaming services as part of cable packages.
For Paramount, this Charter deal is seen as a crucial step as potential buyers evaluate the company’s financial stability and trajectory. With this distribution agreement in place, industry experts anticipate renewed interest in acquisition bids from companies like Skydance Media and Sony/Apollo.
The newly instated Office of the CEO at Paramount, led by a trio of senior executives, may now have greater confidence to pursue long-term strategic plans following the Charter distribution deal. The agreement not only safeguards Paramount’s network distribution but also signals a potential shift in the company’s future direction.
Overall, this new distribution deal with Charter provides Paramount with much-needed stability and leverage as it considers its strategic options and potential buyout offers. The agreement not only secures network distribution but also sets the stage for further developments in the company’s future.