By Dawn Chmielewski
(Reuters) – Sony Pictures Entertainment and Apollo Global Management are discussing a joint bid for Paramount Global, according to a person familiar with the matter.
The companies have not yet contacted Paramount, which is in exclusive 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 structured, 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 as well as its library of films, including classics such as “Star Trek,” “Mission: Impossible” and “Indiana Jones,” as well as television characters like Bob the sponge. to the source.
Sony Pictures Entertainment Chairman Tony Vinciquerra, a media veteran with extensive experience in film and television, would likely run 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 was first to report the Sony-Apollo discussions. Paramount and Sony declined to 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 at the end of 2023 was about $22.5 billion.
A special committee of Paramount’s board opted to continue advanced negotiations with Skydance, rather than pursue a deal “that may not come to fruition,” two people with knowledge of the board’s action said.
The board committee is evaluating the possible acquisition of the smaller independent studio in a stock transaction worth $4 billion to $5 billion.
Skydance is separately negotiating to acquire National Amusements, a company that owns the Redstone family’s majority stake in Paramount, according to a person familiar with the terms of the deal. This transaction is contingent on a Skydance-Paramount merger.
(Reporting by Dawn Chmielewski in Los Angeles; editing by Stephen Coates)