Thread regarding ViacomCBS layoffs

TFW nobody wanted to buy Showtime

Showtime is not profitable and they couldn't find a buyer to assume the debt. McCarthy now has until 2025 to turn it around. It truly is "Showtime".

Paramount plans to merge its Paramount+ and Showtime businesses, a consolidation of linear and streaming entertainment that will likely lead to both layoffs and show cancellations.

https://fortune.com/2023/01/31/showtime-paramount-merge-faq-what-it-means-for-you/

Both the Showtime linear pay-TV channel and the premium tier of Paramount+ will be rebranded as Paramount+ With Showtime, with Chris McCarthy to lead the Showtime studio and linear channel, while Tom Ryan oversees the streaming business.
“We think Showtime is doing $2 billion in revenues on a roughly $1 billion content budget,” he wrote. “Assuming marketing, tech and general & administrative [expense] is another about 20 percent of sales, implies $400 million of costs and Showtime generating approximately $600 million in earnings before interest, taxes, depreciation and amortization.”
“If Paramount cuts half of Showtime’s selling, general & administrative, that’s around $200 million, plus additional direct-to-consumer cost actions could drive total cost savings in the $300-$400 million range, or around 5-6 percent of Paramount’s ‘22 estimated selling, general & administrative [expense].”

https://www.hollywoodreporter.com/business/business-news/paramount-plus-showtime-merger-savings-wall-street-analysts-1235313528/

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| 16802 views | | 3 replies (last February 9, 2023)
Post ID: @OP+1kXuVQGa

3 replies (most recent on top)

Is this some insider knowledge or just editorial comment not based in fact? In what scenario is a company pulling in 30% EBITDA considered not profitable?

the balance sheet is contrary to wells fargos estimations

They are most likely going down a path to drop the brand once there is enough loss in the cable/satellite world.

correct, this is likely the end result but was not the initial plan. they had hoped to squeeze some capital out of several brands by unloading debt - not just showtime - to reserve cash in preparation for "economic uncertainty".

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Post ID: @4gmz+1kXuVQGa

"Showtime is not profitable and they couldn't find a buyer to assume the debt. McCarthy now has until 2025 to turn it around"

Is this some insider knowledge or just editorial comment not based in fact? In what scenario is a company pulling in 30% EBITDA considered not profitable?

I have heard nothing about Paramount shopping Showtime. With this move there is no turnaround. There is plenty of value in the service and brand currently. They are most likely going down a path to drop the brand once there is enough loss in the cable/satellite world.

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Post ID: @3mew+1kXuVQGa

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