Paramount Faces Credit Downgrade Amid Streaming Shift Challenges

S&P Global's negative credit watch highlights concerns over Paramount's financial stability as it navigates the transition from traditional TV to streaming.

• S&P Global has placed Paramount on negative credit watch, signaling potential for a credit rating downgrade due to concerns over the studio's business model shift from linear TV to streaming.
• Paramount's free operating cash flow has been negatively impacted by the decline in pay-TV subscribers and advertisers moving to streaming platforms, leading to weaker cash flow metrics compared to industry peers.
• The company announced plans to lay off around 800 staffers in an effort to return to profitability, amid investor uneasiness and talks of strategic options including potential sales or mergers.
• Warren Buffett's Berkshire Hathaway sold a third of its stake in Paramount, contributing to a 4.5% decrease in the company's stock value.
• Speculation around potential takeovers of Paramount includes interest from Skydance Media, RedBird Capital, and a $14.3 billion offer from media mogul Byron Allen.

3 Articles

TheWrap Deadline The Hollywood Reporter