Shares of Paramount Global (PARA) jumped 9% in premarket trading Friday on reports that Sony Pictures Entertainment and Apollo Global Management are considering a joint bid for the mass media and entertainment conglomerate.
The potential bid comes as Paramount is currently engaged in exclusive negotiations with Skydance Media, led by David Ellison. However, some investors are pushing Paramount to consider alternative proposals.
The offer by Sony and Apollo, which is still being formulated, would involve purchasing all outstanding shares of Paramount and privatizing the company, Reuters reported Thursday.
Under the proposed arrangement, Sony would secure a majority interest in the joint venture and oversee operations of the media giant, managing its extensive film library, which includes notable titles like “Star Trek,” “Mission: Impossible,” and “Indiana Jones,” among others.
Sony Pictures Entertainment Chairman Tony Vinciquerra, who has a wealth of experience in the media industry, is expected to lead the studio.
According to the proposal, first reported by the New York Times, Apollo would take charge of the CBS broadcast network and its local stations, necessitated by regulations limiting foreign ownership of broadcast media.
According to Reuters, Paramount’s board has opted to proceed with its advanced discussions with Skydance Media, choosing to focus on a more certain deal rather than pursue a potential offer “that might not actually come to fruition.”
The special committee of the board is currently assessing the acquisition of the smaller independent studio, exploring a stock deal valued between $4 billion and $5 billion.
