Sources close to Network 10 have shut down reports the broadcaster is facing a “precarious” future amid a possible multibillion-dollar round of cuts across parent company Paramount.
US media executive Shari Redstone has reportedly reached a preliminary agreement to sell her controlling stake in Paramount Global to a company called Skydance Media, which is run by David Ellison, the son of Oracle co-founder Larry Ellison.
The Wall Street Journal reports that Ms Redstone will sell her company National Amusements, which owns about 77 per cent of the voting shares in Paramount, to Skydance, for about $2.5 billion.
Paramount is the owner of the film studio, plus Australian broadcaster Channel Ten, along with the American channels CBS, MTV and Nickelodeon.
It has struggled with a declining cable television business, rising costs, and expenses stemming from the launch of its streaming service.
It’s unclear what the potential deal means for Channel Ten at this stage.
Trade publication Mumbrella published an article on Thursday with the headline “Future of Network 10 uncertain” days after Ten’s parent owner Paramount Global announced its merger with Skydance Media in a deal worth $2.5 billion USD.
Once the Skydance merger completed, the newly formed company will be called New Paramount and incorporate Paramount’s assets, including Network 10, the Paramount film studio as well as the Paramount+ streaming service and American channels CBS, MTV and Nickelodeon.
Mumbrella cited an ominous-sounding memo to staffers from Paramount’s co-CEOs which outlined their intentions to “modernise” by “eliminating duplicative functions and reducing the size of our workforce”.
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Industry publication Mumbrella warned on Thursday Network 10 has an “uncertain future”. Picture: Ten.
The Paramount memo also confirmed plans to “optimise our asset mix by divesting some of our assets” as part of the deal with Skydance.
Mumbrella provided a transaction presentation from Paramount which earmarked plans for $3 billion in cost cuts across the company, with about $1.5 billion of cuts expected within 12 months.
However, according to staff communications from Paramount CEO Shari Redstone seen by SkyNews.com.au, the investor call discussed the ongoing “importance” of Paramount’s linear TV assets.
Industry sources close to Ten also confirmed the $3 billion in “cuts” referenced by Mumbrella have been underway since the start of 2024.
“I don’t really see a story in this as there is no news,” they said.
Ten axed expensive but underperforming franchises like The Masked Singer earlier this year. Picture: Ten.
Ten is believed to have actioned many of the cost-savings months ago, around the time the network opted to cancel several high-profile but underperforming franchises like The Masked Singer, The Bachelor and Gladiators.
In the short term, Network 10 will operate as usual pending a 45-day “go-shop” provision before the SkyDance merger proceeds.
If the SkyDance merger does go through, it is not expected to be fully actioned until the first half of 2025.
Meanwhile, Mumbrella has revised its headline to simply “Paramount earmarks $3 billion in cuts” but did not publish any editor’s note or explanation to its readers as to why it has drastically edited its earlier report.
Paramount’s merger with SkyDance won’t be fully actioned until the first half of 2025. Picture: Getty Images.
The update comes in the midst of a broader wave of job cuts across the linear TV industry due to declining audiences and plunging advertising revenue.
Earlier this month Nine Entertainment Co announced a wave of transformative job cuts across its struggling metro newspapers and TV network that will reduce the company’s workforce by at least five per cent.
Seven West Media is also in the process of slashing headcounts at bureaus nationwide by 150 people, including cameramen, news producers and regional on-air talent.