Paramount Global is exploring a sale of its majority stake in BET Media Group as part of an effort to generate cash to strengthen its flagship Paramount+ streaming service.
A source familiar with the matter emphasized to TheWrap that there is no guarantee the move will end in a transaction.
While the move is still in the early stages, the source said they expect substantial interest among Black high net-worth individuals and minority-owned institutions as potential buyers given BET’s status as a brand and business within the Black community. If a deal does end up happening, the source said that Paramount would expect to maintain a minority stake as well as a commercial relationship in the business.
According to media reports, Tyler Perry is in talks to buy the controlling stake in BET.
BET was launched in 1980 by founder Robert Johnson as a channel specifically catered to African American audiences. Paramount acquired BET in 2000 for $2.3 billion. In addition to BET linear channels and VH1, BET Media Group oversees BET+, a joint venture with Perry, and BET Studios, a joint venture with Kenya Barris and Rashida Jones.
A spokesperson for Paramount declined to comment.
As of its latest quarter, Paramount+ had nearly 56 million subscribers, while about 21 million subscribers make up the rest of its DTC subscriber base, including Showtime and BET+. Paramount does not break out its figures for Showtime and BET+.
Chief financial officer Naveen Chopra told analysts during the company’s latest earnings call that Paramount+’s integration of Showtime will officially launch in the third quarter. As part of the move, the company is raising its prices for Paramount+ subscriptions. The top tier of Paramount+ will rise to $11.99 per month from $9.99 per month. The cheaper, ad-supported Essentials tier, which will not include Showtime, will increase to $5.99 from $4.99 per month. Consumers who already pay for the Paramount+/Showtime bundle will not be affected by this price increase.
The Wall Street Journal was the first to report the BET Media Group discussions.
