What Went Wrong: Inside Paramount’s Failed Merger Talks and the Battle to Salvage the Company

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1. The attempt to sell Paramount has been an over reaction to Wall Street pressure from the jump. It was and remains unnecessary. The slump Paramount is experiencing is not a Paramount problem.

   The entire industry is feeling it as a result of their collective decision to dive into the deep end of the ocean of streaming without understanding the costs. They all wanted Netflix numbers without taking the over 15 years it took for Netflix to build those numbers and build the incredible. They could have achieved it with strategic partnerships, suggested at the time by non Wall Street types, but that was ignored in favor of full ownership.

   Closing that kind of gap takes time and at the time Wall Street applauded the move since most of the companies predicted it would take at least five years to reach profit. Guess what, it hasn’t been five years.

   Wall Street is fickle, will turn in a dime and it’s why it should be ignored when attempting to make long term plans which is entirely how entertainment industry works. By design they have to think a year to three years ahead because of pace of production. Wall Street is barely capable of thinking one month ahead.

   The biggest mistake Paramount has been making is paying any attention to Wall Street.