Paramount Studios
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Even as Paramount Global continues to hold exclusive talks with David Ellison's Skydance and Jerry Cardinal's Redbird Capital, another group of potential buyers is weighing its own moves.
Hollywood Reporter Sony Corp executives, including Sony Pictures Chairman Tony Vinciquerra, have been in contact with Apollo Global Management about making a joint bid for the entertainment company, Sony Corp. has confirmed.
Apollo had previously made a $26 billion offer to buy Paramount, including stock and debt, although the offer was rejected. But the partnership with Sony will likely eliminate any cash or financing concerns.
New York times Reported for the first time Sony speaks out, adding that no offer has been made, given that the exclusive negotiating window still exists. The Times reported that one structure under consideration would see Sony and Apollo effectively take Paramount private, with Sony owning a majority of the company, with Apollo serving as a minority owner.
The actual structure of the deal is unclear, although Paramount's film and television studios would likely fit well with Sony's own studios. That would raise questions about both Paramount+, given Sony's decision to avoid getting into the streaming wars, as well as Paramount's linear TV assets, including CBS. There are federal regulations restricting foreign ownership of US broadcast stations, and as a Japanese company, Sony may face scrutiny under these rules.
Meanwhile, talks between Skydance and Paramount continue, with a source saying the Ellison-led company has put together a plan to achieve operating efficiencies, tapping the executive teams at both Skydance and Redbird (including former NBCUniversal CEO Jeff Shell), in order to help… In the Paramount conversion. Paramount will remain a public company under the Skydance deal.
Some investors complained about 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 were published.
Sony and Apollo did not comment on the report.
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