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 Wall Street Journal is reporting that Sony Picture Entertainment and Apollo Global Management have made a $26 billion all-cash offer to buy Paramount. This comes as Skydance has reportedly offered about $5 billion for a merger offer with Paramount.
Sony will reportedly be the majority owner of Paramount if the deal is accepted and Apollo Global Management will take a minority stake.
Exact details of the offer have not been disclosed, but it is reported that the Redstone family, who owns a majority of Paramount, are reportedly perfoering the 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 that should come to an end soon.
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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