Over the past few weeks, news has circulated that Paramount is moving closer to a sale or merger deal with Skydance. This comes as Paramount has been in talks with several companies for months about a possible sale or merger. This includes discussions with Warner Bros. Discovery, Apollo Global Management and others.
The New York Times now reports that Sony Picture Entertainment is in talks with Apollo Global Management Group about a joint offer to purchase Paramount. It would be an all-cash deal that would transform the company from a public company to a private company.
All of this comes as Bloomberg reported earlier this month that an agreement in principle had been reached between Paramount and Skydance for a deal that would see the companies merge and Skydance take a stake in Paramount.
The exact details of the offer have not been disclosed, but it appears that the Redstone family, which owns the majority of Paramount, prefers this Skydance deal over other offers, including the previous offer from Apollo. To the point that Skydance and Paramount are reportedly in talks for an exclusive 30-day window for negotiations between the two companies.
Exclusive windows like this are common in threads like this. Well, it doesn’t usually guarantee that a deal will happen, windows like this happen when both parties think a deal is entirely possible. However, Sony’s joining Apollo could eventually cause Paramount to reconsider its options.
Currently, Paramount Global is controlled by media executive Shari Redstone. Redstone also controls National Amusements, which owns 77% of Paramount’s voting stock. Reportedly, the Redstone family is also looking to sell its 77% stake in Paramount. With this ownership, the Redstone family must participate in any deal, and it has been reported that they are more interested in a deal like this than others, such as Appollo Global Management’s offer to purchase only the studios.
Any merger appears likely to allow the entire Paramount company to include its cable television networks, including Nickelodeon, Comedy Central, MTV and several movie theaters.
Talks between Paramount and Skydance have reportedly been taking place since November 2023. They now face a new offer from Sony if a deal with Apollo is reached.
The news comes as the entertainment industry faces tough times, with cable TV viewership declining and the majority of streamers struggling to achieve profitability. Paramount’s streaming service, Paramount+, is among the companies struggling to stay afloat.
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