According to Bloomberg sources, Paramount Global is now in exclusive talks to sell BET for $1.6 billion to $1.7 billion to a group that includes BET CEO Scott Mills and Chinh Chu, founder of private-equity firm CC Capital.
The company announced that it has hired bankers to evaluate the sale of certain assets, fueling industry speculation around BET, a frequent target of acquisition offers. The BET Media Group encompasses the BET cable channel, VH1, other networks, the BET+ streaming service, and BET Studios.
Representatives for Paramount Global and CC Capital declined to comment. Following the report, Paramount Global shares rose 5.7%, closing at $10.72 per share. The reported price range for BET is significantly lower than the $3.5 billion offer media mogul Byron Allen made in late 2023. Earlier that year, Paramount Global explored selling a majority stake in BET, with bidders including Allen, Tyler Perry, and Sean “Diddy” Combs.
According to a Wall Street Journal report from August 2023, Paramount halted the bidding process for BET, citing that a sale wouldn’t significantly reduce its debt. However, this decision seems to have been reconsidered.
The three co-CEOs, George Cheeks (CBS), Chris McCarthy (Showtime/MTV Entertainment Studios and Paramount Media Networks), and Brian Robbins (Paramount Pictures and Nickelodeon), have outlined a strategy of job cuts, asset sales, and streaming partnerships to stabilize the company. This follows controlling shareholder Shari Redstone’s decision to end M&A talks with Skydance Media.
After Bob Bakish’s dismissal in late April, the trio took over as co-CEOs. Paramount Global is also expected to sell the Paramount Pictures Studio lot at 5555 Melrose Ave. in Los Angeles, which spans about 62 acres.
During a June 25 employee town hall, CBS’s Cheeks stated the co-CEOs are “looking at selling certain Paramount-owned assets” and have already hired bankers to assist in this process. He emphasized the proceeds would help pay down debt and strengthen the company’s balance sheet but did not specify which assets were under consideration.
Scott Mills, who has led BET since January 2018 and became CEO in 2021, joined the network in 1997 as senior VP of business development and has held various senior roles. As COO of BET, he launched the Centric channel and, as president of digital media, launched BET Mobile and BET’s digital video distribution operations. As EVP and COO of BET Interactive, he oversaw the launch of bet.com in the early 2000s.
Under Bakish, Paramount shed some assets to improve its balance sheet, but the company also missed opportunities, such as a $6 billion offer for Showtime. In 2021, Paramount sold the BlackRock skyscraper (CBS’ New York headquarters) for $760 million and the CBS Studio Center lot for $1.85 billion.
Last October, Paramount Global completed the $1.62 billion sale of Simon & Schuster to private equity firm KKR.