Paramount Global considers sale of BET with Perry in running to buy division
Paramount Global is exploring the sale of a majority stake in its BET division, according to multiple US reports, with media mogul Tyler Perry in talks as a potential buyer.
Tyler Perry (photo: AMFM Studios via <a href="https://commons.wikimedia.org/wiki/File:Tyler_Perry_Interview_2016.jpg">CC</a>)
Assets sitting under BET, which caters to African-American audiences, include cable networks BET and VH1, streaming service BET+ and BET Studios, the latter of which was set up around 18 months ago.
The Wall Street Journal was first to report that Paramount Global was exploring the possibility of a sale.
Perry already owns a minority stake in BET and produces a large number of original shows for the BET cablenet and BET+, including House of Payne, Ruthless and The Oval.
According to the reports, Paramount Global would look to retain a minority stake in BET if a deal did come to fruition.
BET is led by CEO Scott Mills, who served as president of the division for four years before being upped to CEO in November 2021. Around three months ago, VH1, which previously sat under Paramount Media Networks, was moved under BET.
The news comes as Paramount Global looks for ways to find cost savings and raise cash as it pours billions of dollars into its streaming service Paramount+.
In the fourth quarter, Paramount Global reported adjusted losses of US$575m in its direct-to-consumer (D2C) business. At the time, CEO Bob Bakish told investors that the company’s D2C business would hit “peak losses” in 2023, which he described as an “inflection point” on the path to profitability.
As part of enterprise-wide cost-cutting measures, the company has made lay-offs, cancelled shows and announced plans to integrate Showtime and Paramount+ across both linear and streaming in the US.
Paramount Global also planned to sell its publishing company Simon & Schuster for around US$2.2bn to Penguin Random House. However, that sale fell apart after a federal judge in the US blocked the proposed deal.
BET was founded in 1980 by cable lobbyist Robert L Johnson. It was acquired by Paramount Global (formerly Viacom) for around US$2.3bn in 2000.
