The primary motivation for the move was weaker cash flows resulting from the transition from linear TV to streaming.
Disney and Warner Bros.
Discovery, he believes, will be able to grow EBITDA.
Paramount Global headquarters in New YorkMichael M. Santiago/Getty Images
It isnt as clear-cut with Paramount.
Up until a couple quarters ago, we werent sure when that break-even point.
So, cash flow for that company was negative.
For other companies, they were generating cash flow.
For Paramount, they werent.
They also have to show a path toward break-even with their streaming business.
The larger sector is susceptible to many of the pressures faced by Paramount.
Back then, you had advertising on linear television.
But theres also leakage to other companies.
The affiliate fee revenue stream, which has really held up all of media .. is in decline.
And its really not clear to any of us whether streaming is as good a business.
