Bob Bakish Says “Pretty Big Gap” Between Studios, WGA; Paramount Has “Many Levers To Pull” If Strike Prolonged
Paramount CEO Bob Bakish said today that “writers are essential in creating content and… we hope we can come to a resolution that is good for everyone fairy quickly. But it’s also fair to say there is a pretty big gap today, and it’s really a multifaceted kind of bid and ask.”
“Obviously we have been planning for this,” he told Wall Street analysts on a post-earnings conference call, speaking to the WGA strike now entering its third day. “We do have many levers to pull and that will allow us to manage through the strike even if it’s an extended duration.”
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“In terms of those levers. we have a lot of content in the can. So with the exception of late-night, consumer won’t notice anything for a while. Add to that a broad range of reality and unscripted as well as sports, and that is not affected. We can do more in those areas if necessary.”
“Plus we have offshore production, which we had been moving to leverage pre-strike anyway as part of our broader strategy. Plus, finally, one of the largest libraries in media — features, TV series, multiple demographics etcetera — that we can pull through to fill the schedule. So we are well positioned.”
In terms of financial impact, he said, “It really ultimately depends on the duration of the strike. But at this point, we think it’s probably slightly dilutive to revenue, flat to oebitda and acretive to cash. But again, it’s really a question of how long it lasts.” (Oebitda refers to operating earnings before interest, taxes, depreciation and amortization.)
It’s earnings season and Bakish was the first big media executive to take the mic since writers walked off the job Monday when their three-year contract with the AMPTP expired without a new contract. They’ve been picketing in NY and LA and will continue to leading up to big rallies planned on both coasts May 15. David Zaslav will be at bat for Warner Bros. Discovery tomorrow morning, and Bob Iger when Disney reports quarterly numbers next Wednesday.
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