Over the last few weeks, news has been flying that Paramount is getting closer to a deal to be sold to or merge with Skydance. This comes as, for months now, Paramount has been in talks with multiple companies for a potential sale or merger. This includes talks with Warner Bros. Discovery, Appollo Global Management, and others.
Now the New York Times is reporting that Sony Picture Entertainment has been in talks with Apollo Global Management group about a joint offer to buy Paramount. This deal would reportedly be an all-cash deal that would turn the company from a public company to a private one.
This all comes as Bloomberg earlier this month reported that a tentative deal has been reached between Paramount and Skydance for a deal that would see the companies merge and Skydance would take a stake in Paramount.
Exact details of the offer have not been disclosed but it is reported that the Redstone family who owns a majority of Paramount are perfering this Skydance deal over other offers including the earlier offer from Apollo. To the point that reportedly Skydance and Paramount are in talks for an exclusive 30-day window for talks between the two companies.
Exclusive windows like this are common in talks like this. Well, it does not guarantee that a deal will happen typically, windows like this happen when both sides think a deal is very possible. However, Sony joining Apollo could possibly make Paramount reconsider its options.
Currently, Paramount Global is controlled by media executive Shari Redstone. Redstone also controls National Amusements, which owns 77% of Paramount’s voting shares. Reportedly, the Redstone family is also looking to sell their 77% ownership of Paramount. With that ownership, the Redstone family needs to be on board with any deal, and it has been reported that they are more interested in a deal like this than other deals, like the offer from Appollo Global Management to buy just the studios.
Any merger seems to need to be for the full Paramount company to include its cable TV networks, which include Nickelodeon, Comedy Central, MTV, and multiple movie theaters.
Talks between Paramount and Skydance have reportedly been happening since November 2023. Now though they face a new offer from Sony if a deal with Apollo is reached.
The news comes as the entertainment industry faces difficult times with cable TV viewership is declining and a majority of streamers struggling to achieve profitability. Paramount’s streaming service, Paramount+, is among the companies fighting to stay afloat.
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