Paramount Global in Talks with Sony and Apollo for Acquisition: What You Need to Know
Paramount Global is currently in acquisition negotiations with Sony and Apollo Global Management, following failed merger talks with Skydance Media. The company has been facing challenges, including significant first-quarter losses and the recent departure of CEO Bob Bakish.
Sony and Apollo reportedly made a $26 billion all-cash offer to buy Paramount last week, while talks with Skydance Media lapsed. Skydance had been in discussions to acquire Paramount’s controlling stake held by Shari Redstone, but they were unable to reach an agreement before the talks ended. As a result, Paramount has now opened up to exploring other options.
Paramount’s special committee has voted to engage in talks with Sony and Apollo, as well as continuing negotiations with Skydance. However, it is uncertain whether any deal will come to fruition, as regulatory hurdles and potential legal action from shareholders remain significant barriers. The offer from Sony and Apollo would involve the assumption of Paramount’s debt, with Sony becoming the majority shareholder in control of operations.
Bob Bakish, who reportedly opposed the Skydance deal, stepped down as Paramount’s CEO last week amid rumors of his impending ousting. The company has been struggling to find a viable path forward after experiencing substantial debt and failed acquisition attempts. Earlier this year, potential deals with Comcast and Apollo fell through, and a merger bid from Warner Bros. Discovery also did not materialize.
In the first quarter, Paramount reported streaming losses totaling $286 million. The company has been seeking solutions to address its financial challenges, including exploring various acquisition offers. Skydance founder David Ellison and Apollo Global Management, led by CEO Marc Rowan, are among the key players involved in the current negotiations. Shari Redstone, chair of Paramount Global, controls a significant media empire and remains a key figure in the company’s future decisions.
