How's this for a plot twist? Just as it looked like a merger between Paramount and Skydance was nearing a deal after one fell through with Warner Bros. Discovery in late 2023, a new potential buyer has emerged – and it's a very, very significant one. According to The New York Times [paywall], Sony Pictures Entertainment is considering bidding as part of a partnership with Apollo Global Management.
This could be a very big deal, and potentially very bad news for the best streaming services. Sony exited the streaming business in 2019 when it sold off its free streamer Crackle but its possible return could be bad news for the likes of Netflix in particular.
In recent years, Sony has been taking a different approach to other big entertainment studios that have launched their own services. Instead of trying to compete with a streamer like Netflix, it could simply supply it. Sony Pictures has struck some major licensing deals with the streamer over the years that have since been expanded to include Disney Plus with theatrical releases.
However, if Sony decides to get back into the streaming game then that favored-nation approach to licensing content to streaming juggernauts like Netflix and Disney Plus may come to an end. Or maybe it won't. It's possible that what Sony really wants isn't the streaming business, but the shows it streams.
Why is Sony thinking about a bid for Paramount Plus?
It's possible that Sony doesn't care for the streaming bit of the business: it might be considering a bid to get Paramount's film and TV studios, and its huge catalog of content. That includes some truly massive franchises and much-loved shows including the Mission Impossible movies (although following Tom Cruise' deal with WBD at the start of the year, this may no longer be exclusive to Paramount), Star Trek, Top Gun, Spongebob Squarepants and more. Rather than streaming them, Sony may be considering a similar licensing deal to the one it already has.
According to the NYT: "If Sony prevailed in its bid, the company would most likely operate the Paramount studio as a label within its own media empire, fusing the studio’s marketing and distribution arm with its own... The fusion of Paramount and Sony would create a media colossus that would put a collection of TV channels and movie studios under the same corporate umbrella."
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