Contrary to rumors, Tyler Perry did not win the bid to acquire BET, as the network is no longer available for purchase.
After five months of deliberation, Paramount Global has chosen to retain ownership of its BET Media Group, which includes the BET channel, streamer BET+, VH1, and BET Studios.
READ: Kevin Hart & BET are Bringing Back ‘Comic View’ After 9-Year Hiatus
This decision was made despite significant interest from prominent figures such as Tyler Perry, Byron Allen, Sean “Diddy” Combs, and Black-owned media company Group Black. The latter’s acquisition would include a consortium of investors like private-equity firm CVC Capital Partners, 50 Cent, and Shaquille O’Neal.
Tyler Perry’s existing multiyear content partnership with Paramount and Byron Allen’s expansion efforts in the TV station sector contributed to the interest in acquiring BET.
During Paramount’s latest earnings call, on Aug. 7, CEO Bob Bakish was asked about the status of the potential sale and didn’t address BET by name, but replied: “We’re always looking for ways to maximize shareholder value. And as we said before, that might involve divesting, acquiring or potentially partnering on assets all of which we’ve done. But other than that, I’m not going to comment on anything specifically.”
Paramount acquired BET in 2000 for $2.3 billion in stock and $570 million in debt, bolstering its entertainment portfolio which encompasses properties like Paramount Pictures, CBS, Showtime, Nickelodeon, Comedy Central, MTV, BET, Paramount+, and Pluto TV.
Despite Paramount+’s growth to approximately 61 million global subscribers, the streaming division remains unprofitable, incurring a $424 million loss in the second quarter.
In recent dealings, Paramount sold major assets, including a $1.62 billion deal with private equity firm KKR for Simon & Schuster and the sale of tech site CNET for $500 million in 2020. The company’s strategic moves are aimed at scaling up its streaming presence.
Paramount’s array of linear channels has faced challenges due to cord-cutting trends, leading to a loss of over 1.7 million subscribers from major pay-TV and cable companies in the last quarter alone.
Affiliate and subscription revenue at Paramount’s TV Media unit was off 2 percent in its most recent quarter, the company disclosed Aug. 7, noting that the decline was “primarily reflecting the impact from subscriber declines, partially offset by pricing increases.”
Paramount’s decision to end the bidding process for BET was earlier reported by The Wall Street Journal.
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