Topline
Sony Pictures and private equity firm Apollo Global Management have submitted a $26 billion offer for Paramount Global, The Wall Street Journal reported Thursday, the latest bid for the entertainment conglomerate, whose shares have spiked with news of potential takeovers in recent months.
A committee established by Paramount’s board declined a $27 billion bid in March.
Key Facts
Sony Pictures CEO Tony Vinciquerra and Aaron Sobel, a partner at Apollo, submitted an offer letter detailing an all-cash, $26 billion bid for Paramount Global on Wednesday, according to The Wall Street Journal, citing people familiar with the situation.
Sony would become the majority shareholder in Paramount while Apollo would hold a minority stake under the new deal, which is nonbinding and a starting point for negotiations, the Journal reported.
Apollo previously offered $27 billion for Paramount in March, though a committee established by the company’s board to consider mergers and acquisitions declined to entertain the bid.
Shares of Paramount Global were up slightly more than 13% to $13.87 as of just after 2:30 p.m. ET.
Neither Sony, Apollo nor Paramount immediately responded to requests for comment.
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What To Watch For
Skydance Media, founded by billionaire Larry Ellison’s son David, reached a tentative agreement last month to acquire Shari Redstone’s controlling stake in Paramount. That deal will expire Friday, though both companies have reportedly agreed on terms. If the deal expires, Paramount and Redstone can entertain other offers.
Key Background
Paramount Global has received several offers to acquire the conglomerate in recent months, after reporting over $14.6 billion in debt. The company had a market capitalization of about $25 billion in 2021, though it has dropped to $9.2 billion as of April. Bob Bakish stepped down as Paramount’s chief executive last week, after reportedly opposing the company’s proposed merger with Skydance. In March, Apollo offered $11 billion for Paramount Global’s film and television studios, which includes MTV and Nickelodeon. Sony subsequently teamed up with Apollo in talks about a joint buyout of Paramount in a deal that would take the company private.
Forbes Valuation
Marc Rowan, the CEO and co-founder of Apollo, has a net worth of $6.6 billion, according to our latest estimates. Brown founded the private equity firm with billionaires Josh Harris and Leon Black in 1990.
Further Reading
Sony, Apollo Make $26 Billion All-Cash Offer For Paramount (Wall Street Journal)
