Private equity firm BDT & MSD Capital Partners invested $125 million in National Amusements Inc., the controlling shareholder of Paramount Global, to help the company through a rough patch in the stock market. Paramount’s shares have dropped 12 percent year-to-date.
The money will go towards cutting interest expenses and paying off debts while Paramount waits for more audiences to return to theaters, its main source of revenue. The company will also sell some of its assets in an attempt to raise capital for its television division.
“We are pleased to partner with National Amusements in a transaction that supports its stewardship of Paramount Global. Paramount has an incredible legacy, underpinned by its industry-leading content and media assets. We believe strongly in the value creation opportunities ahead for the company and its shareholders,” says Byron Trott, Chairman and Co-CEO of BDT & MSD Partners.
Before CBS and Viacom merged forces to relaunch as Paramount back in 2019, shares were worth twice as much as they are now. Since the announcement, sources report BDT will buy 3.5 million of Paramount’s “non-voting shares” at $15, up over 6.1 percent since today. This investment from BDT Captial Partners will help Paramount as the company alters its direct-to-consumer approach.
“Our expanded partnership with BDT & MSD reflects our strong belief in Paramount’s ability to deliver value to all shareholders. 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,” said Shari Redstone, President and CEO of National Amusements Inc. and Chair of Paramount.
BDT has worked with National Amusements before as an advisor. It is a private equity firm specializing in supporting family-controlled businesses and estates. With a little luck, this investment could help turn Paramount’s recent struggles into a lasting win for both parties.