Paramount Global’s attempt to offload BET Media Group has come to an end, at least temporarily. The entertainment conglomerate formerly known as ViacomCBS is terminating the majority stake sale due to disappointing bids for the billion-dollar-plus asset. The announcement was delivered to bidders on Wednesday event, according to a source familiar with the process.
The bid for BET was a loud secret over the summer with names such as Tyler Perry, Byron Allen, Magic Johnson, and Sean “P. Diddy” Combs being thrown in the mix. Bidders were vying for the opportunity to obtain ownership over BET Networks, the streaming subsidiary BET+, and VH1 in the purchase.
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Viacom originally acquired the once privately-held BET Networks for a whopping $2.34 billion from media mogul and entrepreneur Robert L. Johnson in 2000. Two decades later, the company intended on unloading debt through the sale of one of the largest Black entertainment networks in the nation.
It was alleged that Perry, owner of his own major studio in Atlanta, had offered Paramount $2B, while Allen, who owns Allen Media Group/Entertainment Studios, the Weather Channel and several local TV entities, opted a bid of an estimated $3B, but was ultimately turned down. Apparently, Paramount was looking to return BET to a Black owner who could maintain “responsible stewardship” of the property.
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Perry was a major contender for the sale, already having 25% stake in BET+ and several of his TV series airing on BET Networks. However, Perry wasn’t willing to increase his bid of $2B to $3B, per the preference of Paramount. It was determined that the “benefits of maintaining a majority stake in BET Media Group creates more value for Paramount than any of the proposals [Paramount] received.”
Paramount Global currently owns networks CBS, Showtime, MTV Networks, Comedy Central, and Nickelodeon, major studio Paramount Pictures, streamers Paramount+ and Pluto TV, many of which are assets with strong, long-running brands. The company recently sold book publisher Simon & Schuster to KKR, a leading global investment firm, for $1.62B, more than a half-million less than its original sale price of $2.2B.
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The cost-cutting and debt-reduction strategy serves as a way for Paramount, with roughly $15.6B in debt, to direct energy and resources to its digital assets, especially at a time when the company is experiencing a decline in stock price (currently $14.55 as of Aug. 17), and conventional pay-TV subscribers and advertisers, in the last earnings report.
