Forbes reported last night that Viacom Inc’s Paramount Pictures “could merge with Sony Pictures, Universal Studios or another movie studio amid a wave of consolidation in the industry over the next few months.” The story was a summary of remarks from veteran investor Mario Gabelli in the latest issue of Barron’s.
Gabelli, the chief executive of Gamco Investors, Inc, which owns shares of Viacom, “said he expects dealmaking among movie studios as they seek to cut costs.
“Today there are seven or eight motion-picture studios,’ Gabelli said. “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.”