slashed its dividend by 79% amid a cash crunch on May 6.The deal will see BDT Capital Partners, an affiliate of merchant bank BDT & MSD Partners, receive preferred equity in National Amusements.
The cash infusion will help Paramount, formed when CBS and Viacom combined in 2019, steady itself as it navigates the shift from cable to streaming.
The company’s streaming losses reached $511 million in the first quarter of this year and it’s been going through major restructuring to save cash, including shutting down MTV News earlier this month.“The investment will position NAI for sustainable growth and further post-pandemic recovery in its underlying operations as movie theater attendance continues to increase,” National Amusements said in a statement.
It plans to use the part of the funds to cut its interest expenses and pay down both short-term and long0-term loans.“NAI has conviction in Paramount’s strategy and execution, and we remain committed to supporting Paramount as it takes the necessary steps to build on its success and capitalize on the strategic opportunities in our industry,” Redstone said in the statement.The dividend cut dramatically reduced Redstone’s income, The Wall Street Journal reported, noting the infusion of cash means National Amusements won’t have to sell part of its stake.Read more on thewrap.com
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