Sony Pictures Entertainment, in partnership with Apollo Global Management, is reportedly considering a joint bid to acquire Paramount Global, as per sources cited by Reuters. This move could significantly alter the current negotiations between Paramount and Skydance Media, which are now in an exclusive phase.
The proposed acquisition would involve a cash offer for all outstanding shares of Paramount Global, with plans to take the company private. In this joint venture, Sony would assume a majority stake and oversee the operation of Paramount’s extensive media library, which includes high-profile film franchises such as “Star Trek,” “Mission: Impossible,” and “Indiana Jones,” as well as popular television properties like SpongeBob SquarePants.
Apollo Global Management is positioned to take control of the CBS broadcast network and its associated local television stations. This strategic division leverages Apollo’s robust experience in managing broadcasting assets and Sony’s prowess in content creation and distribution.
Paramount Global, which merged CBS and Viacom in 2019, has witnessed a significant erosion in market value, losing over $16 billion since the merger. The company, valued at $7.44 billion as of the latest market close, faces ongoing challenges adapting to the consumer shift from traditional TV to streaming platforms. Despite subscriber growth, its streaming service Paramount+ has struggled to achieve profitability.
As discussions continue, Paramount’s financial performance remains under scrutiny by investors, with the stock down nearly 7% since the start of exclusive talks with Skydance on April 3. The potential acquisition by Sony and Apollo underscores the heightened interest in consolidating media assets amid a rapidly evolving digital landscape, promising a potential turnaround for the storied media conglomerate.
