Barry Diller exploring bid to gain control of Paramount
Billionaire Barry Diller is considering a bid to take control of Paramount, the parent company of CBS, MTV and Nickelodeon, according to four people familiar with the matter.
Mr. Diller’s digital media conglomerate, IAC, has signed nondisclosure agreements with National Amusements, Paramount’s controlling shareholder, the sources said. Nondisclosure agreements are a key step in closing deals, allowing both parties to exchange confidential information.
Mr. Diller’s interest in Paramount is the latest twist in one of the most complex — and dramatic — attempts to sell a media company in years. Paramount had been teetering on the brink of a deal with Skydance, a Hollywood studio, in recent months before the talks abruptly collapsed.
According to two sources, the non-disclosure agreements were signed after a potential deal between Paramount and Skydance fell through in June.
It is unclear how far along the talks between IAC and National Amusements have progressed. Others have also expressed interest in acquiring National Amusements, including media and finance executive Edgar Bronfman Jr. and Steven Paul, the Hollywood executive best known for his work on the “Baby Geniuses” franchise.
A bid to take control of Paramount would be a coda for Mr. Diller, 82, who tried to buy Paramount Pictures in the early 1990s. He was outbid by Sumner Redstone, the belligerent media mogul whose daughter, Shari, now runs the company.
Mr. Diller was named head of Paramount Pictures in 1974 at the age of 32. He was credited with rejuvenating the studio and developing a cadre of talented lieutenants, including future Disney CEO Michael Eisner and studio wunderkind Jeffrey Katzenberg, who became known as the Killer Dillers.
After Mr. Redstone outbid him for the company, Mr. Diller decided to further build his new media empire and made a series of bold deals to expand IAC.
“They won,” Mr. Diller said in a statement after losing to Mr. Redstone. “We lost. Next.”
National Amusements began exploring potential deals last year. As part of the talks with Skydance, Shari Redstone, the largest shareholder in National Amusements, was set to sell the company to Skydance, while Paramount was set to merge with Skydance in a separate transaction. That deal fell through after they could not agree on non-economic terms following significant shareholder opposition.
By acquiring National Amusements, a buyer would gain control of Paramount — and its valuable studio library — without having to strike a deal to buy the company outright. But it would also mean the buyer would gain control of an asset with significant liabilities, including about $14 billion in debt and cable companies facing significant headwinds.
