Raphael Stevens

Paramount Global is exploring a sale of a majority stake in BET Media Group, which includes BET’s cable network and studio, BET+ and VH1.
Paramount executives believe selling the business to a consortium of wealthy Black investors and institutions may unlock opportunities and value, sources say.
A sale, which may not happen, is not suggestive of a broader strategy to sell Paramount in pieces, sources say.

Shari Redstone, chairwoman of ViacomCBS and president of National Amusements, and Bob Bakish, President and CEO of ViacomCBS, celebrate their company’s merger at the Nasdaq MarketSite in New York, December 5, 2019.
Brendan McDermid | Reuters

Paramount Global is considering selling a majority stake of BET Media Group, the owner of the BET cable network and studio, VH1, and the streaming service BET+, according to people familiar with the matter.
Paramount executives believe BET may be particularly valued by a consortium of wealthy Black individuals and institutions, which could unlock value for the media asset in ways that are more difficult under its current corporate ownership, said the people, who asked not to be named because the discussions are private. Total 2022 revenue for BET Media Group was about $1.5 billion, according to a person familiar with the matter.

Talks are in early stages and no deal is assured, said the people. A Paramount spokesperson declined to comment. The Wall Street Journal first reported on the talks.
Sale talks for BET Group are not suggestive of a broader strategy to begin selling off pieces of Paramount, said the people. Paramount Global recently rejected a $3 billion deal for its premium cable network Showtime, according to a Wall Street Journal report.
While other assets at Paramount Global are closely intertwined with its flagship streaming service Paramount+, BET has its own streaming service, its own ad sales team, and an investment from actor and producer Tyler Perry. That makes a majority stake sale cleaner than a potential sale of other assets at Paramount, one of the people said.
Selling a majority stake in BET Group would allow Paramount Global to get added capital to spend on programming for Paramount+ and Pluto TV, its free ad-supported streaming service. Paramount Global said its streaming business lost $575 million last quarter.
Paramount+, which had nearly 56 million subscribers as of Dec. 31, recently announced it would combine with Showtime later this year. When the streaming services merger happens, Paramount+’s subscription prices for its various tiers will increase, the company recently said.

The Showtime premium cable-TV network will also begin airing Paramount+ content and be rebranded as Showtime with Paramount+.
Paramount Global wants to maintain a minority stake in BET Media Group so it can continue to have a commercial relationship with the company, including potentially airing some of its programming on Paramount+, the people said. Paramount moved VH1 into BET Media Group in October. The cable network would be included in a sale, the people said.
BET Media Group is run by BET CEO Scott Mills.
Paramount+ added 9.9 million customers in the fourth quarter. The company has said that quarterly increases in subscriber numbers can be attributed to content from its broadcast CBS network, particularly NFL games, cable-TV channels, films such as “Top Gun: Maverick,” and original programming related to hit franchises like “Yellowstone” and “Criminal Minds.”
–CNBC’s Lillian Rizzo contributed to this article.
WATCH: Cramer Lightning Round: If Paramount Global comes down, buy, buy, buy!

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Internal emails sent hours after another Norfolk Southern train derailment show railroad officials announcing safety adjustments on rail cars.
It’s the third incident for the freight railroad in just over a month, including the toxic disaster in East Palestine, Ohio.
A Norfolk Southern spokesman told CNBC the train carrier is now mandating that any trains over 10,000 feet use distributed power.

Hours after a 28-car Norfolk Southern train derailed Saturday in Springfield, Ohio — the third incident for the freight railroad in just over a month, including the toxic disaster in East Palestine, Ohio — internal emails show railroad officials making broad safety adjustments for rail cars.
An internal Norfolk Southern email sent Sunday and obtained by CNBC with a time stamp approximately 11 hours after the latest derailment indicated that Norfolk Southern was planning to reduce train length in an effort to prevent future incidents. Sources tell CNBC the email was given to Norfolk Southern yard managers, who are union workers in charge of stacking the trains.

A Norfolk Southern spokesman told CNBC that guidance has since been updated and the train carrier is now mandating that any trains over 10,000 feet use distributed power, meaning the trains would be powered from several locations across the length of the train, not just from the front. Distributed locomotives are wirelessly controlled from the leading locomotive in both power and braking as needed.
Norfolk Southern told CNBC other railroad carriers currently have this safety practice in place.

This photo taken with a drone shows the continuing cleanup of portions of a Norfolk Southern freight train that derailed in East Palestine, Ohio, Thursday, Feb. 9, 2023.
Gene J. Puskar | AP

“At Norfolk Southern, the safety of our crews and the communities we serve comes first,” Connor Spielmaker, spokesman for Norfolk Southern, wrote via email. “Part of enhancing safety is continuously evaluating how we operate our network, and we have been examining immediate ways to move that goal forward. Today, as an interim step, we are ensuring all trains longer than 10,000 feet are operated with distributive power. We will build on this interim change to drive final policies that are appropriate for each segment of our railroad.”
Norfolk Southern told CNBC it is actively reviewing all safety protocols to make sure trains are operating appropriately across the network.
Still, Jeremy Ferguson, president of SMART-Transportation Division, the country’s largest rail union, said his workers are being told the railroad will limit train length.

“I have seen Norfolk Southern documents to yardmasters [Monday] morning from the field that is telling us trains no longer than 10,000 feet regardless of distributed power,” said Ferguson. “The train that derailed on Saturday already had distributed power, so their comment to CNBC does not make sense. I will say it is a good move by Norfolk Southern to take the right steps in reducing the train lengths, because the trains are too long.”
Train lengths have been a contentious issue for railroads and labor unions in negotiations. Railroads currently run on what’s called precision scheduled railroading, or PSR, which has led to much longer trains — as long as three miles.
Trains are stacked based on the destination, not weight distribution, with stacking of the first destination at the head of the train and in sequence until the last drop-off.
Railroads have redesigned train length in an effort to use fewer people and to move more cars with fewer locomotives, reducing costs and generating higher profits. But railroad unions and customers have raised safety and service concerns.

The derailment in Springfield marks the third derailment since the Feb. 3 East Palestine train disaster, in which hazardous materials spilled.
On Feb. 16, a 135-car Norfolk Southern train traveling from Detroit to Peru, Indiana, derailed approximately 14 miles outside the yard in Romulus, Michigan. According to the investigative report for that incident, the tonnage profile shows heavy cars at the head of the train, in the middle and in the rear, with empty cars scattered throughout.
The derailment is still under investigation, but according to one on-site investigation report, human error is likely to be a large factor: An “engineer panicked and applied heavy dynamic braking which resulted in an emergency brake application and derailment.”
The National Transportation Safety Board announced it is sending investigators to the Springfield site.

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Packaging of Toblerone chocolate bars will swap Switzerland’s Matterhorn for a generic mountain shape.
U.S. owner Mondelez confirmed it was due to Swiss laws on product origins, as it prepares to move some production to Slovakia later this year.
The company said the move would allow it to increase production and that some Toblerone bars would still be made in the Swiss capital.

Toblerone chocolate bars with a representation of the Matterhorn mountain (back) and of a generic mountain (front) in Geneva. The Swiss Matterhorn peak will be removed when some of the chocolate’s production is moved from Switzerland to Slovakia and replaced by a more generic mountain under strict “Swissness” rules.
Fabrice Coffrini | Afp | Getty Images

Toblerone chocolate packaging will no longer feature Switzerland’s iconic Matterhorn mountain, as its U.S. owner Mondelez moves some production to Slovakia later this year.
The company will also remove a reference to Toblerone being “Swiss chocolate,” instead declaring it, “Established in Switzerland in 1908.”

It’s due to Swiss legislation, in force since 2017, which requires any product using “Swissness” to advertise a product or service to meet a set of origin criteria. Milk-based products must be made exclusively in the country.
Lawmakers say it is a way to protect the prestige associated with a Swiss-made product. Marks of “Swissness” can include the flag, references to cities such as Geneva, or in this case the famed mountain in the Alps known for its neat pyramid shape.
Mondelez confirmed it is changing its packaging due to Swiss legislation as it moves some production overseas.

A Swiss flag flies near Matterhorn mountain on January 7, 2022 near Zermatt, Switzerland.
Sean Gallup | Getty Images News | Getty Images

It said the redesigned bar features a “modernised and streamlined mountain logo that is consistent with the geometric and triangular aesthetic,” and retains the subtle outline of a bear on the face of the mountain. Bern, the administrative capital of Switzerland, features a bear on its coat of arms.
Mondelez is also tweaking the Toblerone font and brand logo and including the signature of the distinctive nougat, almond and honey-filled chocolate’s founder, Theodor Tobler.

Mondelez said Toblerone bars would continue to be produced in Switzerland and that it had invested in its Bern factory to increase production of its 100 gram bars by 90 million a year.
The changes coming this year, it said in a statement provided to CNBC, will help it meet increased demand and “strengthen the Toblerone brand for the future.”

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Altria said it would buy e-cigarette startup NJOY for $2.75 billion.
The deal comes after the company shed its stake in e-cigarette maker Juul Labs.
Altria also makes Marboro cigarettes.

Source: NJOY

In a bid to strengthen its portfolio of smoke-free products, Altria Group said Monday it would buy e-cigarette startup NJOY for $2.75 billion.
Altria, which makes Marlboro cigarettes, will have full global ownership of NJOY’s e-vapor product portfolio, including NJOY ACE, the only pod-based e-vapor product with market authorizations from the FDA.

“We believe we can responsibly accelerate U.S. adult smoker and competitive adult vaper adoption of NJOY ACE in ways that NJOY could not as a standalone company,” Altria CEO Billy Gifford said.
The announcement comes soon after Altria exited its stake in electronic cigarette maker Juul Labs. Altria acquired a stake in Juul Labs that was valued at $12.8 billion in 2018, but the deal quickly soured amid scrutiny from federal regulators and thousands of lawsuits that claimed the Juul had targeted minors. Altria’s Juul stake was recently valued at $250 million, according to Reuters.
Juul came close to filing for bankruptcy in November, and its products remain under scrutiny of the Food and Drug Administration, which pulled them off shelves nationwide briefly did last year. In September, Altria ended its noncompete agreement with Juul.
The Altria-NJOY deal includes $500 million in cash payments contingent on certain regulatory outcomes with NJOY products.
NJOY has six products that have received full approval for sale from the U.S. Food and Drug Administration. It’s one of the few vaping companies whose products have clearance from federal regulators.
“We believe the strengths of our commercial resources can benefit adult tobacco consumers and expand competition,” Gifford added.

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SiriusXM said it is cutting 8% of its workforce, or 475 roles, as the car radio subscription company has been looking to reorganize its business.
CEO Jennifer Witz said in an email to staffers that the layoffs come as SiriusXM is “entering into a new phase” of its business on top of “today’s uncertain economic environment.”

Pavlo Gonchar | Lightrocket | Getty Images

Sirius XM is the latest media company to announce a round of layoffs
The car radio subscription company, known for its commercial-free music and talk radio channels, said Monday it is cutting 8% of its workforce, or 475 jobs.

“We are entering into a new phase for our Company,” CEO Jennifer Witz said in an email to employees on Monday. “The investments we are making in the business this year, coupled with today’s uncertain economic environment, require us to think differently about how our organization is structured.”
Shares of SiriusXM hit a new 52-week low Monday.
In November, the CEO had told the company that as part of their 2023 plans there would be a review of the company. Witz said in the memo Monday that the company has also reduced content and marketing spending, decreased its real estate footprint and also put tighter restrictions on travel and entertainment expenses.
“However, today’s decision to reduce our workforce was required in order for us to maintain a sustainably profitable company,” Witz said.
Layoffs have been occurring across the media and technology industry in recent months as companies face macroeconomic challenges and brace for a possible recession.

SiriusXM, which is backed by John Malone’s Liberty Media, has been particularly affected by lower automotive sales, as satellite radio subscriptions often come with new cars. The company said it had 32.4 million self-paying subscribers at the end of 2022, but ended the fourth quarter at 6.8 million trial subscribers, down about 224,000 from the prior quarter.
However, the monthly rate of customers cutting their subscriptions stood at 1.5% during the quarter, remaining “at record low levels.”
Read the full memo here:
From: Jennifer WitzDate: Monday, March 6, 2023 at 7:58 AMSubject: Important Company Update
Good Morning,
I have some difficult news to share. After a review of our business, we have made the decision to reduce the size of our workforce by 475 roles, or 8%. Unfortunately, this will mean saying goodbye to talented colleagues across the organization.
Over the course of the day today, impacted employees will begin receiving invitations to join meetings with their respective leader and a member of our People + Culture team. 
I want to acknowledge that this is going to be a challenging day, especially for those departing from the Company, and I’d like to extend my deepest gratitude to everyone for their contributions to SiriusXM. Regardless of the team, level, or tenure, you played a role in bringing our Company to where it is today and for that we are grateful. This was not an easy decision to make, nor one we took lightly. However, it is critical for us to take the right steps now to secure the long-term health and profitability of our business.
How did we get here?We are entering into a new phase for our Company. The investments we are making in the business this year, coupled with today’s uncertain economic environment, require us to think differently about how our organization is structured. As I shared in November, our planning process for 2023 included an enterprise-wide review of our business to identify opportunities for greater agility and efficiency. As part of this effort, we identified areas in which we could limit discretionary spending to minimize the impact of any additional needs for staff reductions. We streamlined our non-headcount costs by reducing content and marketing spend, decreasing our real estate footprint, and most recently, implementing tighter restrictions in our Travel and Entertainment policy. However, today’s decision to reduce our workforce was required in order for us to maintain a sustainably profitable company.
Who is impacted? Over the past five years, our business has grown and expanded with the addition of new acquisitions, business lines, and revenue streams. Now, we have completed an assessment of our departments and functions to determine where we can improve collaboration, consolidate teams to achieve greater efficiencies, and ultimately, design an organization structure that is best positioned to achieve our priorities. As a result, nearly every department across SiriusXM will be impacted. We believe the new operational design will allow us to move faster and more effectively as we take on new challenges across our business.
What’s next?For those leaving us, you will be contacted directly regarding your departure, and you will have the opportunity to speak with a leader from your department as well as a member of our People + Culture team. We understand that this transition won’t be easy, but please know that we’re committed to supporting you during this process, and we’re providing exit packages that include severance, transitional health insurance benefits, Employee Advocacy Program continuation, and outplacement services. Today is one of the most difficult days we’ve had to face as a team, and these changes impact each of us deeply. However, it is my belief that these tough decisions were necessary as we look to capture the opportunity in front of us. 
Together, we are committed to delivering the best premium audio experience in North America. We are evolving our service to give the next generation of listeners new ways to discover and engage with our incredible programming and talent. With our vision as clear as ever, and our operating transformation now underway, we will continue to make investments as we gear up for our next major milestone: the launch of a new, best-in-class SiriusXM experience.
Again, to those impacted by these changes, I thank you for all that you’ve done to bring SiriusXM to where it is today, and I wish you all the best in your future endeavors. 
We’ll discuss these changes and our path forward during our next Company-wide All Hands meeting. In the meantime, I’ll be in touch later today to share an update and you’ll also hear more details from your respective Executive Leaders throughout the remainder of this week.
In closing, thank you for your focus, dedication, and resilience. This is not an easy moment for any of us, so it’s more important than ever that we support each other, and that you lean on our leaders, including me, as we work through next steps.
– Jennifer 

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Lordstown Motors said Monday that it still has over $220 million in cash.
It delivered just three Endurance EV pickups to customers before the end of 2022.
Lordstown is working with contract-manufacturer Foxconn on a new electric vehicle program.

Signage outside Lordstown Motors Corp. headquarters in Lordstown, Ohio, on Saturday, May 15, 2021.
Dustin Franz | Bloomberg | Getty Images

Lordstown Motors said Monday that it still has over $220 million in cash, despite ongoing challenges that halted production of its Endurance electric pickup after just three were delivered to customers before the end of 2022.
Lordstown began deliveries of its first EV, the Endurance pickup truck, in November. But the company said last month that it had halted production to address performance and quality issues, and that it recalled 19 of the trucks to repair a faulty electrical connection that could stop the motors abruptly while driving.

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As of Dec. 31, Lordstown had $221.7 million in cash and short-term investments on hand.
Here are the key numbers from Lordstown’s fourth-quarter earnings report.

Loss per share: 45 cents, versus a loss of 42 cents per share in the fourth quarter of 2021.
Revenue: About $194,000. Lordstown had no revenue in the year-ago period.

The Ohio-based startup is beginning a pivot to a new electric vehicle program in collaboration with Taiwanese contract-manufacturer Foxconn, which bought Lordstown’s plant and invested in the startup last year in a deal that could eventually be worth up to $170 million if all milestones are hit.
Lordstown said that Foxconn has so far invested $52 million, of which $30 million is earmarked for a new EV platform, which will incorporate components and engineering developed by the Mobility in Harmony Consortium (MIH), a Foxconn-led effort to develop an open architecture for electric vehicles.
Lordstown said that the next platform and vehicle program are “key” to its long-term strategy.

“Our asset-light business model and collaboration with the Foxconn EV ecosystem, including MIH, will provide the opportunity for Lordstown Motors to create winning EVs that are tailored to the needs of customers that use them for various work applications, while gaining the cost benefits of scale,” said CEO Edward Hightower in a statement.
This is a developing story. Please check back for updates.

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