Paramount Studios
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While Paramount Global remains in exclusive talks with David Ellison’s Skydance and Jerry Cardinal’s Redbird Capital, another group of potential buyers is considering their own moves.
hollywood reporter Sony executives, including Sony Pictures Chief Executive Tony Vinciquerra, confirmed they are in contact with Apollo Global Management about a joint bid for the entertainment company.
Apollo had previously offered Paramount $26 billion in equity and debt, but the offer was reportedly rejected. However, by partnering with Sony, concerns about funding and funds will be alleviated.
new york times It was the first to report on Sony’s negotiations, adding that no offer has been made given that an exclusive negotiating window still exists. The newspaper reported that the structure being considered would involve Sony and Apollo effectively taking Paramount private, with Sony owning the majority of the company and Apollo operating as a minority shareholder.
The actual structure of the deal is not clear, but Paramount’s film and television studios will likely mesh well with Sony’s own studios. Given Sony’s decision to avoid entering the streaming wars, questions will arise about both Paramount+ and Paramount’s linear TV assets, including CBS. There are federal regulations restricting foreign ownership of U.S. broadcasters, and as a Japanese company, Sony could face increased scrutiny under such regulations.
Meanwhile, negotiations between Skydance and Paramount continue, with people familiar with the matter saying Ellison’s company will improve operational efficiencies and leverage Skydance and Redbird’s management teams, including former NBCUniversal CEO Jeff Shell. The plan has been made clear. I will contribute to the rebuilding of Paramount. Paramount will remain a public company under the Skydance deal.
Some investors are unhappy with the decision not to pursue the Apollo deal given the all-cash offer.
Paramount shares rose in after-hours trading after reports of the talks emerged.
Sony and Apollo have not commented on this report.
