Paramount Global has lowered the valuation of its Australian broadcast licences by US$8 million (A$12.7 million) to an estimated fair value of US$13 million (A$20.7 million), according to a report from Capitol Brief which cited a filing with the US Securities and Exchange Commission (SEC) on Thursday.
The write-down comes as Paramount moves forward with its US$8.4 billion (A$13.3 billion) merger with David Ellison’s Skydance Media, a deal that has already secured approval from the Australian Competition and Consumer Commission (ACCC).
Of the deal, Ellison said: “This is a defining and transformative time for our industry and the storytellers, content creators and financial stakeholders who are invested in the Paramount legacy and the longevity of the entertainment economy,” he said.
The company confirmed the ACCC did not object to the deal, and the Foreign Investment Review Board (FIRB) has also granted approval.
Skydance Media’s David Ellison.
The reduction in licence value reflects broader shifts in the media landscape, where traditional broadcast assets face increasing pressure from digital and streaming platforms. For advertisers, the financial adjustment raises questions about Network 10’s long-term positioning in the Australian market.
Network 10’s Australian accountants had already written down the licences to zero in December, following the network’s $322 million annual loss.
For audiences, the deal will see Paramount – the parent company of CBS, 10, Paramount+ and Nickelodeon – merge with its financial partner on several major recent films including Top Gun: Maverick and Mission Impossible – Dead Reckoning.
Paramount’s non-executive chair, Shari Redstone will sell the family’s controlling stake in Paramount in a transaction that will culminate in the merger. The merger represents the end of an era for the Redstones, whose late patriarch, Sumner Redstone, transformed his family’s drive-in movie theatres into an empire including Paramount Pictures, CBS, Comedy Central, Nickelodeon, and Network 10 in Australia and MTV.