By Dawn Chmielewski
(Reuters) – Sony (NYSE:) Pictures Entertainment and Apollo Global Management (NYSE:) are discussing a joint bid for Paramount Global, according to a person familiar with the matter.
The companies have yet to approach Paramount, which is in exclusive deal talks with Skydance Media, an independent studio led by David Ellison, although some investors have urged Paramount to explore other options.
The competing offer, which is still being prepared, would offer cash for all outstanding Paramount shares and take the company private, the source said.
Sony would own a majority stake in the joint venture and operate the media company and its library of films, including classics like “Star Trek,” “Mission: Impossible” and “Indiana Jones,” and television characters like SpongeBob SquarePants. to the source.
Sony Pictures Entertainment chairman Tony Vinciquerra, a veteran media executive with deep experience in film and television, would likely lead the studio and benefit from Sony’s marketing and distribution.
Apollo would likely take control of the CBS broadcast network and its local television stations, due to restrictions on foreign ownership of broadcast stations, the source said. Sony’s parent company is headquartered in Tokyo.
The New York Times first reported on the Sony-Apollo discussions. Paramount and Sony declined comment. Apollo could not be reached for comment.
The private equity firm previously made a $26 billion offer to buy Paramount Global, whose enterprise value was about $22.5 billion at the end of 2023.
A special committee of Paramount’s board has opted to continue discussions on an advanced deal with Skydance rather than pursue a deal “that may not actually materialize,” two people with knowledge of the matter said action of the board.
The governance committee is evaluating the potential acquisition of the smaller independent studio in an all-stock deal worth $4 billion to $5 billion.
Skydance is separately negotiating to acquire National Amusements, a company that owns the Redstone family’s controlling stake in Paramount, according to a person familiar with the deal terms. That transaction is contingent on a merger between Skydance and Paramount.
