Why Is Paramount Global Stock Trading Lower Wednesday?

Paramount Global PARA stock is trading lower amid reports of the negotiations to sell its Black Entertainment Television (BET) network to a group led by BET CEO Scott Mills and Chinh Chu, a former Blackstone Inc BX executive and head of CC Capital Partners. 

The discussions, which are private and thus not publicly disclosed, revolve around a potential sale price of nearly $2 billion, Bloomberg reports.

Earlier in the year, Paramount, which owns CBS, MTV, and other channels, attempted to sell BET along with VH1 but did not receive satisfactory bids. 

Chinh Chu, known for creating special-purpose acquisition companies and recently involved in a merger with Getty Images Holdings Inc GETY, has not commented.

Also Read: American Girl Dolls Leap To Big Screen In Mattel, Temple Hill & Paramount's Latest Film Venture

Other notable figures, including TV producer Byron Allen and actor-producer Tyler Perry, had previously shown interest in acquiring the Paramount channels. 

Perry, who has a longstanding relationship with the networks, criticized the initial sale process as "disrespectful," suggesting that the asking price was excessively high.

The sale comes at a challenging time for Paramount, which is under the control of the Redstone family. 

The company has been grappling with declining traditional TV viewership and advertising revenues, alongside the substantial costs associated with expanding into streaming TV through its Paramount+ service. 

As a result, Paramount's shares have dropped nearly 6% in 2023, continuing a trend of decline over the past few years. 

Discussions about the Redstone family potentially selling their stake to film producer David Ellison and RedBird Capital Partners have also occurred.

Price Action: PARA shares are trading lower by 1.86% to $15.53 on the last check Wednesday.

Also Read: Are Apple & Paramount Teaming Up? Potential Bundle Deal Could Shake Up Streaming Wars

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.