Sony and Apollo Bid $26 Billion for Paramount Global

Sony Pictures Entertainment and Apollo Global Management have reportedly submitted a joint bid to acquire Paramount Global in an all-cash deal valued at $26 billion. This proposal comes amid Paramount's negotiations with Skydance Media, which has been seeking to merge with the media giant while keeping it public. The offer from Sony and Apollo is non-binding and was presented to Paramount's special board committee as an initial expression of interest.

Paramount Global, which owns assets such as CBS and MTV, is currently in the midst of a 30-day exclusive negotiating period with Skydance Media, backed by RedBird Capital Partners. The potential acquisition by Sony and Apollo has raised concerns over possible mass layoffs and a reduction in the number of major Hollywood studios. Despite these concerns, the bid from Sony and Apollo has garnered interest among investors who are weighing the options as the deadline for the exclusive period with Skydance approaches.

The move from Sony and Apollo follows the recent stepping down of Paramount CEO Bob Bakish and comes at a time when Sony is seeking to bolster its position in the industry without a broad-scale direct-to-consumer streaming service. Sony previously acquired Columbia Pictures in 1990 and has since become a leading studio operator. If successful, the deal would result in Sony taking a majority stake and Apollo becoming a minority shareholder, although the companies anticipate potential regulatory hurdles. Meanwhile, Paramount has recently restructured its executive leadership, with top executives from Paramount Pictures, CBS, and Showtime/MTV Entertainment Studios assuming joint leadership roles.