Is Paramount going to merge with another studio? Financial analyst and CEO of GAMCO Investors Mario Gabelli told financial magazine Barron's it seems likely. According to Reuters, Gabelli said, "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... We hear talk of something going on."Sony and Universal are the main names being bandied about, but is Paramount itself in need of saving? It's already consolidated its indie imprint Paramount Vantage, despite Vantage's roster of Oscar winners. It's too early to say if this is just another rumor or a sign o' the times.
Then again, Gabelli also advises readers to buy stock in Viacom, Paramount's parent company, and his company GAMCO also happens to own stock in Viacom.
Stay tuned to see if this will develop into an actual-factual deal or just more Internet chatter.
