Towards the beginning of this year, Paramount Global put Black Entertainment Television (BET) up for auction and the leading bidder doesn’t seem willing to spend the $3 billion price. Tyler Perry has long been considered the eventual winner of the bidding war but currently, sources report he’s hesitant to go through with the purchase.
Buying the BET Group also includes the BET cable channel, BET+, and VH1. The actor already has a 25 percent stake in BET and BET+ since 2019. He helped bring BET to the streaming world by launching BET+, so he seems like the most qualified bidder to take over the BET Group. Tyler Perry also has the funds to follow through on his bid, partnering with a private equity firm.
“When this came up, I thought ‘Wow, this is meant to be’. What I can tell you is it’s worth a lot more with me than it is without me,” said Tyler Perry in an interview last March.
Tyler Perry has offered just under $3 billion and is growing weary of the long, drawn-out bidding process. The New York Post cites sources saying this is “a price tag that other investors also consider to be lofty.” In 2000, Paramount bought the channel from Viacom for only $2.7 billion. BET Group’s current Ebitda tally is $325 million, and Paramount wants “roughly ten times” that before accepting an offer.
“Paramount’s leverage now is six times Ebitda, so to make this work a sale needs to happen at eight times or more. There is interest, but not at eight times [Ebitda].
Overall, Paramount Global reported $15.6 billion in combined debt last March. The company owns Paramount Pictures, Paramount+, MTV, CBS, and Simon & Schuster, a book publisher that’s also up for sale.
In March, Curtis Jackson (aka 50 Cent), Sean “Diddy” Combs, and Shaquille O’Neal also considered bidding for BET but have since backed out.
So, will Tyler Perry buy BET? Paramount Global is scheduled to make a decision by mid-July when the final bids are due.