One of the biggest news items in Hollywood over the last week has surrounded the massive media company, Paramount. It’s the second oldest film studio in the United States. And because of its mergers with CBS and Viacom, is also a part of the sprawling media company, Paramount Global. Sony Pictures is at the forefront of studios in line to wholly purchase Paramount, and this could come with some pretty major changes.
If the purchase happens, it may mean the end of the Paramount Pictures studio lot.
Over the last few years, we’ve seen media companies take a hit in profits as the streaming wars have impacted the way films and television programs are financed and distributed. Intellectual property rights are also a bigger deal as companies want to own brands and trademarks in order to capitalize on their name recognition.
It’s this reason why Sony is looking to buy Paramount, and merge the company into its own corporate structure. Sony already has its own film studio, so it wouldn’t need Paramount Pictures’ classic lot. Instead, it could lease the property out for additional revenue. Sure, from a business perspective it makes sense (and dollars), but in terms of the legacy of film and Hollywood itself, it would be a devastating blow to that cinematic history.
As of this writing, the negotiations between Paramount Sony (and Sony’s partner in the deal Apollo Global Management) are private. Reports indicate if the buyout is successful, Sony would effectively be gutting Paramount for everything that it can. It would sell off Paramount+ streaming service, seek buyers for the various television networks it owns like Nickelodeon and MTV, and get rid of its CBS stations.
This would also mean Sony would be in control of Paramount’s most popular and enduring IP- “Star Trek.” As well as “Mission: Impossible,” and even “Top Gun.” Which is troubling, to say the least.
If Paramount agrees to sell, there would still be regulatory hurdles to go through for it to be approved. These large purchases often require approval from the United States Department of Justice and the Federal Trade Commission. This purchase would definitely be large enough to require their oversight, especially considering how few studios are left not owned by another bigger studio. (Looking at you, Disney and Warner Bros. Pictures.)
