Sony and private equity group Apollo have made a bold move by announcing their intention to make a $26 billion cash offer for Paramount Global, just one day before an exclusivity window is set to expire for a competing bid from Skydance Media. The Japanese group behind Sony Pictures studio would be the majority investor in the deal, with Apollo as a minority equity investor, according to sources familiar with the approach.
The offer, priced between $17 and $19.50 per share, has already caused a stir in the market, with Paramount’s non-voting class B shares jumping 12.5% to $13.80 after news of the bid broke. This is the second time Apollo has approached Paramount at the same price, indicating their strong interest in the entertainment company.
While Sony and Apollo are providing all the equity financing for the bid, Legendary Entertainment, an existing Apollo investment known for releasing blockbusters like “Dune: Part Two,” is also expected to be part of the takeover effort. However, Paramount, Sony, and Apollo have all declined to comment on the matter.
Meanwhile, Shari Redstone, who holds the majority of Paramount’s voting stock, is reportedly leaning towards the bid from Skydance, an independent entertainment group known for producing hits like “Top Gun: Maverick.” Skydance has been engaged in exclusive talks with Paramount, but the window is set to expire soon, leaving the door open for other potential suitors.
As the drama unfolds, Paramount shareholders are divided on which bid to support, with some urging the company to consider Apollo’s offer, citing its simplicity and higher premium compared to Skydance’s proposal. With the fate of Paramount hanging in the balance, all eyes are on the board as they evaluate the competing bids and make a decision that could reshape the entertainment industry.