Sony and Apollo are discussing a joint proposal for Paramount, source says

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

The companies have not yet approached Paramount, which is in exclusive talks with Skydance Media, the independent studio headed by David Ellison, although some investors have pressed Paramount to explore other options.

The competing offer, which is still being structured, would provide liquidity to all of Paramount’s outstanding shares and take the company private, the source said.

Sony will 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 such as Bob Sponge. , says the source.

Sony Pictures Entertainment Chairman Tony Vinciquerra, a media veteran with extensive film and television experience, will likely run the studio and leverage Sony’s marketing and distribution services.

Apollo will 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 head office is located in Tokyo.

The New York Times was the first to report discussions between Sony and Apollo. Paramount and Sony declined to comment. Apollo could not be reached for comment.

The private equity firm has already made a $26 billion offer to buy Paramount Global, which had an enterprise value of about $22.5 billion at the end of 2023.

A special committee of Paramount’s board of directors decided to continue exploratory talks with Skydance rather than seek a deal “that may not materialize,” two people familiar with the board’s actions said.

A board committee is evaluating the possibility of acquiring a small independent studio in an all-stock transaction valued at between $4 billion and $5 billion.

Skydance is separately in talks to acquire National Amusements, the company that owns the Redstone family’s majority stake in Paramount, according to a person familiar with the deal. The deal is the subject of a merger between Skydance and Paramount. (Reporting by Dawn Chmielewski in Los Angeles; Editing by Stephen Coates)