Investing.com - Paramount Global, the media conglomerate that owns a suite of networks including CBS and MTV, is reportedly engaged in exclusive discussions to divest its Black Entertainment Television (BET) network.
The potential deal, estimated between $1.6 billion and $1.7 billion, comes after a previous round of talks with Skydance Media fell through.
The prospective buyers include BET's current CEO Scott Mills and Chinh Chu, the head of the New York-based private equity firm, CC Capital. Interestingly, this group had previously discussed an offer of just under $2 billion last year.
The news of the potential sale comes after a proposed merger with Skydance Media, led by David Ellison, was abandoned by Shari Redstone, who holds a controlling stake in Paramount. The talks have sparked renewed interest in Paramount's stock, with shares jumping by 4.2% to $10.56 in New York following the news.
Previously, media mogul Byron Allen had also expressed interest in the network, proposing a $3.5 billion bid for both BET and the VH1 channel last year. Allen stressed that BET should be Black-owned. Additionally, actor and filmmaker Tyler Perry, an investor in the BET+ streaming service, had also expressed interest in acquiring a stake in the larger enterprise.
Founded by businessman Robert L. Johnson in 1980, BET was sold to Paramount’s predecessor, Viacom, in 2001 for approximately $3 billion. The network has built strong connections with some of the most successful Black entertainment creators, including Perry, Kenya Barris, and Rashida Jones, who hold investments in the BET Studios production company.