Update: Paramount Global In Discussions With Tyler Perry To Sell Majority Stake In BET

Update: It appears that Paramount Global is talking with Tyler Perry about a deal for BET Media as the conglomerate explores a sale of a majority stake in the division.

Perry, who has a strong relationship with BET CEO Scott Mills as well as Paramount Global CEO Bob Bakish, is eyeing the asset as his own producing deal with BET is coming to an end. He supplies a large portion of the scripted content on BET and BET+, and is a partner with Paramount on the streaming service launched in 2019.

According to an insider familiar with the matter, Paramount is considering selling a controlling stake in its BET business, comprising BET, VH1, and the BET+ streaming service. However, the discussions are still in the early stages, and no agreement is guaranteed. The source also mentioned that Paramount plans to retain a minority stake and maintain a business relationship if the sale goes through. BET's CEO is Scott Mills.

BET is different from other divisions within Paramount's portfolio since it has minority investors in some of its departments. Tyler Perry is one of the investors in BET+, while Kenya Barris and Rashida Jones are stakeholders in BET Studios. These partnerships could complicate any attempt to combine BET+ or BET Studios with Paramount+ or other studios owned by the company.

A deal, if it materializes, would give Paramount additional funds as it continues to develop its primary streaming offering, Paramount+. The company is reviewing its assets and trying to determine how they fit into its overall strategy moving forward. In January, Paramount announced its plans to merge its Paramount+ and Showtime businesses.

BET was established in 1980 by former cable lobbyist Robert Johnson and his wife Sheila Johnson as the first cable network dedicated to African American audiences. Paramount (then known as Viacom) purchased BET for $2.3 billion in 2000.

It is too early to speculate on potential buyers, but given BET's significance in the African American community, it would make sense for high-net-worth Black individuals or Black-led businesses to express interest. Several well-known advertisers, such as General Motors and Coca-Cola, have pledged to increase their advertising spend on minority-owned media firms. Although BET serves a minority audience, its ownership by Paramount does not meet that criteria.