Paramount Global is ‘Leaning In’ to Content Cost Cuts and ‘Hollywood Hits’ as Leaders Chart a Course for Survival

variety.com:

Cynthia Littleton Business Editor The inevitable M&A question came toward the end of Paramount Global‘s hourlong conference call with Wall Street analysts on Wednesday — a session that undoubtedly would have been more contentious for Paramount leaders if they hadn’t started out by serving up sacrifices for the greater good of free cash flow and profit.

Paramount Global CEO Bob Bakish waved off the inquiry from Bank of America Merrill Lynch media analyst Jessica Reif Ehrlich about the tidal wave of media speculation about suitors coming (and going) for the company with a breezy “We’re always looking for ways to create shareholder value.” But it was clear from the earlier commentary and business updates from Bakish and chief financial officer Naveen Chopra that they are charting a course for this year and next to take streamer Paramount+ to the promised land of profitability and keeps the company entact as a standalone entity.

Indeed, Bakish nodded to the endless chatter on the Street and in media about Paramount’s long-term fate. “Regardless of current market sentiment, we’re convinced that the value of our assets today, combined with the execution of our strategy as we move forward represents a significant value creation opportunity, and we are dedicated to unlocking that value,” Bakish said.

The unlocking process will include a $1 billion write-down to be taken in the current quarter. Bakish and Chopra promised Wall Streeters that the company will spend less to make and market movies and TV shows and they will get more bang for those bucks with more aggressive windowing of streaming content across linear assets and vice versa.