Investment Firm Says Paramount Could Merge15 Jun, 2009 By: Chris Tribbey
CEO Mario Gabelli of investment firm Gamco Investors Inc. is speculating that Paramount Pictures could merge with another studio in the coming months, according to Reuters news service.
“Today there are seven or eight motion-picture studios. A round of consolidation will occur in the next six to 12 months because of the costs of financing, prints and advertising, the benefits of globalization and such,” Reuters quoted Gabelli telling Barron’s. "We hear talk of something going on.”
Gabelli was also quoted as calling Paramount parent company Viacom a “terrific cash generator” that could earn up to $2.40 a share in the next year. Viacom stock was down nearly a $1, or 4%, to $22.60 in afternoon trading June 15.
In addition to Paramount, Viacom also owns MTV, CBS, Nickelodeon and VH1.