Sony Pictures Entertainment and Apollo Global Management are considering a possible joint bid for Paramount Global.
News of the discussions was first reported by the New York Times. Sources close to the situation confirmed the conversations but cautioned that there are numerous obstacles that would need to be overcome before the sides could formally submit an offer. Apollo previously floated a $26 billion offer for Paramount by itself and before that it floated an $11 billion offer for the Paramount Pictures film studio on its own.
The concept for the deal would call for Sony Corp. to contribute Sony Pictures Entertainment to the joint venture that would encompass Paramount Global. Sony and Apollo would both contribute cash to help finance the transaction that would take Paramount Global private. Sony would be the majority owner of the enlarged entity that also includes CBS. Sony and Apollo would have to come up with a structure for the deal for the 28 TV stations that CBS owns given that FCC rules bar a foreign-owned entity from having majority control of broadcast TV stations.
Popular on PvNew
A representative for Apollo did not immediately respond to a request for comment.
More to come
