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According to the New York Times, Paramount Global has entered into negotiations with a buyout group led by Sony Pictures Entertainment and Apollo Global Management. This comes after the exclusive negotiating window with Skydance ended on Friday.
According to sources familiar with the matter, a special committee of Paramount’s board of directors has approved the new talks. Last week, there were reports that the Sony group submitted a cash offer of $26 billion for the company.
According to the latest reports, the Sunday deadline has solidified the ongoing discussions between Sony and Apollo. However, it is worth noting that Skydance, the studio led by David Ellison, is still in consideration.
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As per a report from Deadline, Shari Redstone, who holds a controlling stake in Paramount, is said to favour Skydance’s bid due to the potential for fewer regulatory obstacles.
According to a report from The Times, there is speculation that the Sony-Apollo bid may result in Apollo gaining control over CBS and its broadcast licence. This is due to U.S. regulations that could potentially prevent Sony, a Japanese-owned company, from fully owning a broadcast network.
Meanwhile, according to a report by Variety on Friday, there is a growing belief that both bids may not be successful in the end. This is mainly because investors, who are against the deal, are threatening legal action.
Paramount shares have experienced a decline of approximately 13% year to date, and have dropped by 24% over the past year. In comparison, the S&P 500 has seen a gain of 7.5% this year and a 24% gain over the past 12 months.
