Cord cutting and a decline in advertising have slashed profits for many TV companies looking for ways to save money. Now it is reported by New York Post CBS parent Paramount is looking to sell its popular West 57th Street studio and headquarters in New York City to help keep costs down.
According to the report, CBS is looking to sell its flagship studio since the 1950s. The plan is to sell the expensive site and look for a cheaper, smaller one for his studios.
Recently, CBS has moved many of its productions to other, cheaper locations. Meaning, they likely no longer need their 600,000 square foot broadcast center. This will likely help Paramount get some much-needed cash as it shifts its focus to streaming.
CBS isn’t alone in selling its headquarters. Warner Bros. announced. Discovery recently reported that CNN will move from its headquarters in Atlanta to a cheaper location in the area. This helped them cut costs by reducing rents. Now it looks like CBS wants to do the same.
For now, those plans are not set in stone as Paramount is now sending requests for proposals to sell the building and find a new location. Depending on what offers they get will ultimately decide if Paramount will follow through with their plans.
Recently, Paramount has been looking for ways to raise money. Private equity firm BDT & MSD Capital Partners has invested $125 million in National Amusements Inc. , the controlling shareholder of Paramount Global, to help the company through a rough stock market correction. Paramount shares are down 12 percent year-to-date.
The money will go toward lowering interest expense and paying down debt while Paramount waits for more audiences to return to theaters, its main source of income. The company will also sell some of its assets in an effort to raise capital for its television division.
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