Sony Pictures Entertainment is reportedly in talks with Apollo Global Management to make a bid to acquire Paramount which itself is currently discussing a merger with Skydance.
According to the New York Times, opposition from investors is hindering Paramount’s discussions in which Skydance would acquire the company in a $5 billion all-stock deal through Paramount parent company National Amusements. Shareholders have threatened to sue Paramount if it refused to consider any other deals and on Thursday, reports emerged that that transaction would not be completed within the 30 day exclusivity period that closes May 3.
Although Sony and Apollo have not yet made a bid, Apollo had previously considered acquiring Paramount for $26 billion, including debt. The Sony-Apollo bid would be an all cash offer for the outstanding stock in Paramount and would result in Paramount going private under the joint ownership. Whereas National Amusements would be acquired in the Skydance deal, they would not be part of the Sony-Apollo bid, according to the Times.
Other suitors have included Allen Media Group in a $30 billion deal including debt, as well as Warner Bros. Discovery, although those discussions have not gotten far.
Acquiring Paramount would add to SPE’s already massive portfolio of TV and film franchises, making it even more competitive against its chief rivals, Universal (the biggest), Warner Bros. Discovery and Disney. Sony Pictures Entertainment posted a profit of $281 million for Q3 2023, a 57% increase from the same period the previous year.
