Barry Diller’s IAC explores bid to take control of Paramount, NYT reports

(Reuters) -Billionaire Barry Diller’s digital-media conglomerate IAC is exploring a bid to take control of Paramount Global, the New York Times reported on Monday, citing four people with knowledge of the matter.

IAC entered into nondisclosure agreements with National Amusements, Paramount’s majority shareholder, sometime after the collapse of the Paramount-Skydance deal in June, NYT said, adding it is unclear how far along the talks have progressed.

Shari Redstone, controlling shareholder of National Amusements, abruptly ended talks with David Ellison’s Skydance Media last month, killing the potential sale of a stake in Paramount Global to the independent studio.

IAC said it does not comment on rumors or speculation, while Reuters could not immediately reach Redstone for comment.

Earlier in the day, CNBC reported Paramount was holding talks with other media and tech companies to determine a viable structure where its streaming platform Paramount+ can be merged with another streaming entity and potentially co-owned.

Fears of market saturation have forced media companies to bundle their streaming businesses and offer discounted rates to lure customers who are wary of signing up and paying for numerous individual services.

Warner Bros Discovery (NASDAQ:) is one of the companies that has expressed an interest in a joint venture, merging its Max and Paramount+, CNBC added.

Paramount and Warner declined to comment on the report.

While a structure for a hypothetical joint venture between Paramount and Warner has not been discussed in detail, ownership likely would not be a 50-50 split given the existing nature of the streaming assets and their finances, per the report.

Paramount’s streaming service has more than 71 million subscribers, far less than Netflix (NASDAQ:)’s 269.60 million and Warner’s 99.6 million.