Sony Reportedly Eyeing Joint Bid with Apollo to Acquire Paramount Global

By Leira Aquino

Apr 19, 2024 04:23 AM EDT

Paramount Global Is Laying Off About 800 Workers: Report
Sony Pictures Entertainment and Apollo Global Management are said to be considering a joint bid to acquire Paramount Global.
(Photo : PATRICK T. FALLON/AFP via Getty Images)

Sony Pictures Entertainment and Apollo Global Management are reportedly exploring a joint bid to acquire Paramount Global, according to sources familiar with the matter.

The potential bid comes amidst Paramount's ongoing discussions with Skydance Media for a merger, raising the stakes in the race for control over the iconic studio

Sony, Apollo in Talks for Joint Bid

The New York Times first reported about the possible joint bid.

While no official bid has been submitted yet, discussions between Sony and Apollo signal a strategic move to navigate the competitive media industry landscape. 

Sony's Chief Executive Officer, Tony Vinciquerra, has been engaged in talks with Apollo to explore this partnership further, as per the reports.

The joint bid, if materialized, would likely be an all-cash offer for Paramount's outstanding stock, essentially taking the company private through a joint venture structure. 

This move could address concerns about Apollo's previous bid of at least $26 billion, including debt, providing additional operational experience and capital from Sony's side, according to Bloomberg Intelligence analyst Geetha Ranganathan.

READ NEXT: Paramount Confirms Departures of 4 Board Members Amid Skydance Merger Talks

Paramount Acquisition Bid Still Under Negotiations

The terms of the potential joint bid are still under negotiation, leaving room for variations in the final offer. 

One possibility is for Apollo to take a minority stake in the joint venture, with Sony assuming a majority share and overseeing Paramount's operations.

Sony, unlike its major competitors, does not have a dedicated streaming platform. 

Acquiring Paramount, with its rich content library and established networks like CBS and Paramount+, could be a strategic move for Sony to bolster its digital content offerings and compete in the streaming market.

Meanwhile, Paramount's shares surged 12%  in after-hours trading following reports of the bid discussions, according to IGN.

READ MORE: Paramount Gets Court Win in 'Top Gun' Copyright Battle, Judge Rules Sequel Not in Breach

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