Topline
Sony and investment firm Apollo Management are in talks about a joint buyout of Paramount Global, according to multiple outlets, sending Paramount shares up around 12% in after-hours trading Thursday.
Key Facts
Sony and Apollo are considering a team-up for a joint acquisition of Paramount, according to The New York Times, which noted neither company has submitted an official bid.
The Sony-Apollo joint bid would offer cash for shares of Paramount and take the company private, the Times reported, citing two people familiar with the situation.
The news of the potential joint bid comes about two weeks after Skydance Media—founded by billionaire Larry Ellison’s son David—reached a tentative agreement to buy Shari Redstone’s controlling stake in Paramount.
Redstone’s family business, National Amusements, holds a 77% voting stake in Paramount.
Sony and Apollo aren’t looking to buy out National Amusements with their deal, unlike Skydance, which would provide cash for National Amusements’ stock, Bloomberg reported.
Representatives for Sony and Paramount didn’t immediately respond to Forbes’ request for comment.
Tangent
Paramount’s stock has positively reacted multiple times to news of potential takeovers, spiking nearly 15% earlier this month as Skydance reportedly neared a deal with the company and more than 12% in December following multiple reports that RedBird Capital and Skydance were eyeing a potential takeover.
Forbes Valuation
We estimate Apollo CEO Mark Rowan’s net worth at $6.4 billion.
Key Background
Apollo has made an attempt at purchasing Paramount before, offering a whopping $27 billion for the entertainment conglomerate late last month. A committee established by Paramount’s board to consider mergers and acquisitions declined to entertain the bid, Variety reported. The $27 billion offer differs from Skydance’s takeover tactic, which aims to acquire the Class A voting shares owned by National Amusements. Doing so could give Skydance control of Paramount without having to outright purchase the company. However, Skydance’s bid for the shares could leave another round of complex dealmaking to be completed, according to The Wall Street Journal. Paramount was saddled with $14.6 billion in debt at the end of last year.
Further Reading
Paramount Global Shares Spike Nearly 15% As Deal With Larry Ellison’s Son Reportedly Nears (Forbes)
Sony in Talks to Join a Bid to Buy Paramount (NYT)
Sony Is Said in Talks With Apollo on a Joint Paramount Bid (Bloomberg)