Apollo Global Management Inc. and Sony Group Corp. are considering a joint offer for Paramount Global, sparking a jump in shares of the film and TV giant as investors weigh the potential for a bidding war with technology mogul David Ellison.
Sony Pictures Entertainment chief Tony Vinciquerra has held discussions with Apollo over the past week about teaming up on an offer, a person familiar with the matter said. But the pair haven’t submitted an official proposal, the person added, asking to not be identified discussing private conversations.
Sony and Apollo’s entry would complicate a deal already in the works for the storied studio behind Mission: Impossible and The Godfather. Paramount, the parent of CBS, MTV and other networks, is holding exclusive talks with Skydance Media, the independent film and TV company led by Ellison.
The Sony-Apollo group would offer cash for shares of Paramount, taking the company private through a joint venture, according to the New York Times, which reported on the discussions earlier Thursday.
Paramount’s class B shares rose as much as 14% in after-hours trading, while Sony slid 2%. The Japanese company’s representatives declined to comment.
A joint bid “would likely assuage financing concerns that Paramount management may have had with Apollo’s prior $26 billion bid — given Sony’s deep pockets,” Bloomberg Intelligence analyst Geetha Ranganathan wrote in a note. It could provide an alternative to the Skydance proposal, which hasn’t been well-received by Paramount’s nonvoting shareholders, she wrote.
Tokyo-based Sony bought Columbia Pictures in 1989. The home to the Spider-Man and Ghostbusters franchises is the only major Hollywood studio without a general entertainment streaming service. An acquisition of Paramount would significantly increase its exposure to traditional TV channels, which have been losing viewers to streaming.