Paramount Global is in exclusive negotiations to sell its Black Entertainment Television (BET) network to an investor group led by BET CEO Scott Mills and Chinh Chu, head of the New York-based private equity firm CC Capital, according to a report by Bloomberg.
The report cites unnamed sources familiar with the matter as revealing that the proposed deal is valued between $1.6bn
and $1.7bn.
The bidding group had previously discussed an offer of just under $2bn, as reported by Bloomberg in December, with Mills and Chu subsequently reviving their discussions with Paramount following the collapse of merger talks between the entertainment giant and Skydance Media, after Shari Redstone, who holds a controlling interest in Paramount, decided against the deal.
News of the potential sale prompted a a 4.2% increase in Paramount’s shares yesterday, which reached $10.56 by 2:28pm in New York.
BET, founded in 1980 by businessman Robert L Johnson, was acquired by Paramount’s predecessor, Viacom, in 2001 for approximately $3bn.
Paramount is currently focused on cutting $500m in costs to enhance profitability with the potential sale of BET forming part of this broader strategy.
Source: Private Equity Wire
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