The Wall Street Journal claimed this week that Appollo Global Management has made a $11 billion deal to buy the film and television studio.
This deal is exclusive to the studios and differs significantly from prior offers to buy or combine with the entire Paramount corporation. This includes Skydance’s offer to merge with Paramount. According to the Financial Times, Paramount’s owners are not interested in dividing up the firm and would prefer to sell it as a single unit. This suggests that an offer from Skydance is more likely to be accepted.
Talks with Skydance are apparently in the early stages and might quickly fall apart, particularly with investment groups potentially driving up the price of Paramount. No date for an auction has been announced, but bankers have apparently begun exchanging information on Paramount with interested bidders. It is reported that Redstone intends to sell its stake of Paramount at auction to the highest bidder.
Shari Redstone, a media executive, currently controls Paramount Global. Redstone also controls National Amusements, which owns 77% of Paramount’s voting stock. According to reports, the Redstone family is also considering selling its 77% stake in Paramount. With that ownership, the Redstone family must approve any transaction, and it has been stated that they are not interested in dissolving the corporation for the time being.
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Any new owner of National Amusements would have authority of Paramount’s cable television networks, which include Nickelodeon, Comedy Central, MTV, and several movie theaters.
The announcement comes as the entertainment business faces difficult times, with cable TV viewership decreasing and the majority of streamers struggling to make a profit. Paramount’s streaming service, Paramount+, is one of the companies struggling to stay afloat.
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