According to Bloomberg, Paramount has hired a bank to explore the possible sale of a dozen television stations that may not be part of the company’s core business.
The independent stations, which include those in markets such as New York, Philadelphia, Dallas and Tampa and some of which were formerly part of CW, could fetch $500 million to $1 billion if sold, the news agency reported, and are expected to attract interest from private equity firms and other broadcasters.
Bloomberg stressed that the talks were at a preliminary stage and that potential buyers would be in a better position after the U.S. presidential election in November when there was more clarity about the regulatory environment.
Representatives for Paramount declined to comment.
Bloomberg’s report comes after Paramount co-CEO Chris McCarthy said during the company’s second-quarter conference call that management is “aggressively evaluating our portfolio with the goal of improving our balance sheet.”
“The assets that make up Paramount Global today were built through the rise of the linear business. And while we have strong brands and businesses, we need to reshape our portfolio to best compete in the future,” McCarthy said at the time. “The assets under consideration are undeniably strong and have exciting futures, but are better utilized on their own or as the centerpiece of another business.”
Four people familiar with the co-CEOs’ plans previously told TheWrap that possible assets that could be put up for sale included BET, VH1, Pluto TV and the Paramount property, which would be leased back for the studio’s use.
In addition to the asset divestment, McCarthy, Brian Robbins and George Cheeks have also previously stated that they are in “active discussions” about potential strategic partnerships or joint ventures. The company has also begun cutting 15% of its total U.S. workforce, with 90% of the layoffs expected to be completed by the end of September.
Paramount reported a market capitalization of $8.08 billion and a stock price of $11.33 per share at the end of Monday’s trading session. Shares have fallen 73 percent over the past five years, 23 percent over the past year and 21 percent year-to-date, but are up 2 percent over the past six months and 1.25 percent over the past month.
