The impending merger between Skydance Media and Paramount Global, expected to conclude by late 2025, is poised to catalyze a wave of mergers and acquisitions in the media sector. Industry insiders are closely monitoring this development, forecasting significant deal-making activities in the year ahead.
The media and entertainment realm is bracing for an active period of mergers and acquisitions in 2025. The potential spinoff of Comcast’s NBCUniversal cable channels, along with the Skydance-Paramount merger, are expected to set off a chain of transactions. Jonathan Miller, CEO of Integrated Media, anticipates a crucial inflection point for media enterprises as streaming TV businesses reach maturity.
Comcast’s decision to spin off networks such as CNBC, MSNBC, and E! into a new entity called SpinCo is significant, as this new organization intends to expand by acquiring additional cable channels. Likewise, the combination of Skydance Media with Paramount’s assets is expected to influence Paramount to divest some of its properties to streamline operations.
The environment is ripe for further consolidation as Peak TV’s decline persists, reducing the number of independent TV suppliers. This situation has already seen the merger of LeBron James’ SpringHill with Fullwell 73, the force behind “The Kardashians.” Meanwhile, technology giants have showcased their presence in entertainment, yet they remain reluctant saviors for struggling companies.
Alex Iosilevich of Alignment Growth points out the tech companies’ strategy, noting their preference to secure rights rather than ownership, evidenced in the sports domain. Paramount is prepared to offload assets, such as the Paramount Pictures lot and potentially BET Media, while reaffirming its commitment to CBS.
SpinCo’s role in the market could evolve either as an acquirer or a target for acquisition. Mark Lazarus, poised to lead SpinCo, is open to exploring options with Warner or AMC Networks, though legal and financial considerations will dictate the timeline.
Warner Bros. Discovery is preparing for restructuring in 2025 through the separation of its streaming and traditional television units to manage its substantial debt obligations. This division could prompt a realignment, possibly resulting in asset sales like CNN, which isn’t central to its streaming strategy.
Additionally, Lionsgate’s expansive film library presents an attractive acquisition target post-separation from Starz. Potential buyers could include Paramount, Warner, or even tech behemoths like Amazon, given their prior acquisition of MGM Studios.
Disney, another key player, may revisit the idea of divesting its television networks. CEO Bob Iger shows cautious optimism about the profitability of their streaming division but acknowledges the potential complexity in selling parts of the company without affecting its core operations.
Speculation around Roku’s potential sale also surfaces, driven by its widespread adoption in households and interest from industry giants like Netflix and potential newcomers like Target aiming to capitalize on its advertising capabilities.
The convergence of strategic planning and market dynamics suggests that 2025 could be a landmark year for media mergers and acquisitions. With key players reevaluating their portfolios in response to industry trends, the coming months are likely to witness strategic shifts and realignments in the media landscape.
Source: Businessinsider
