National Amusements, the mum or dad firm of Paramount Global, has obtained a $125 million funding from BDT & MSD Capital Partners, an funding agency that focuses on supporting family-controlled companies and estates, simply days after Paramount slashed its dividend — a income stream for National Amusements’ homeowners, the Redstone household.
The inflow of money is designed to take stress off of Paramount Global inventory value, which has been below water in latest months partly due to concern about declines in conventional flows of media income, equivalent to promoting and distribution, as the businesses grapple with the rise of streaming video. The deal will enable National Amusements to repay some current loans which were secured by the corporate’s Paramount Global shares.
“Our expanded partnership with BDT & MSD reflects our strong belief in Paramount’s ability to deliver value to all shareholders. Paramount has the best assets in the media industry, with an incredible content library and IP spanning all genres and demographics, as well as the No. 1 broadcast network, the leading free ad-supported streaming television service and the fastest-growing pay streaming platform in the U.S.,” mentioned Shari Redstone, Chair, CEO and President of NAI who can be chair of Paramount Global. “NAI has conviction in Paramount’s strategy and execution, and we remain committed to supporting Paramount as it takes the necessary steps to build on its success and capitalize on the strategic opportunities in our industry.”
National Amusements will use the BDT funding to pay down its revolving mortgage and “recent term loan borrowings,” the corporate mentioned. After it pays down these loans, it can cut back curiosity expense and “obligations to make future pledges under these facilities will be eliminated,” National Amusements mentioned.
National Amusements and BDT & MSD Capital have had an advisory relationship for the previous few years.
“We are pleased to partner with National Amusements in a transaction that supports its stewardship of Paramount Global,” mentioned Byron Trott, chairman and co-CEO of BDT & MSD Partners. “Paramount has an incredible legacy, underpinned by its industry-leading content and media assets. We believe strongly in the value creation opportunities ahead for the company and its shareholders.”
Paramount Global shares are down 13% for the 12 months up to now, after shedding 50% of their worth in 2022. Earlier this month, executives vowed that funding in streaming would peak in 2023, and famous the corporate is making an attempt to dump belongings it believes are not core to its mission. These embody its BET cable unit and the Simon & Schuster book-publishing operation.