Paramount+ and Showtime merger makes it a better acquisition target
- Tim Baysinger, author of Axios Pro: Media Deals
Illustration: Gabriella Turrisi/Axios
Paramount is even more of an acquisition target after its move to merge Showtime with Paramount+.
Why it matters: Paramount has long been seen as a top M&A target ever since Shari Redstone brought Viacom and CBS back together in 2019.
Of note: Any deal for Paramount would be tricky, given how closely the business is still tied to the fading legacy cable bundle with CBS and cable networks like MTV and Nickelodeon.
Details: According to the news announced Monday, Showtime programming will be integrated within Paramount+, which will rename its premium tier as "Paramount+ with Showtime." The Showtime TV channel will also have that same name.
- Paramount executives warned that the moves would likely lead to layoffs, which have battered media and tech companies over the past month.
The big picture: Following a year that saw streaming lose its shine, consolidation will be on the tip of every executive's tongue in 2023.
- This spring, Warner Bros. Discovery will roll out its streaming service that combines HBO Max and Discovery+.
- More entertainment companies are also bundling services as the market becomes more saturated.
Catch up quick: Paramount set the stage for this integration when it began bundling Showtime and Paramount+ last year.