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Paramount shares jump more than 10% as Sony, Apollo discuss joint buyout bid

Paramount Global shares rose more than 10% on Friday after news that Sony Pictures Entertainment and Apollo Global Management were discussing a joint bid to acquire the company.

Paramount is currently negotiating an exclusive deal with Skydance Media, an independent studio led by David Ellison, but some investors are urging Paramount to explore other options.

Private equity firm Apollo had earlier submitted a $26 billion bid for the company and a separate $11 billion bid for Paramount Pictures.


Paramount is currently negotiating an exclusive deal with Skydance Media, an independent studio led by David Ellison, but some investors are urging Paramount to explore other options. Reuters

Sources told Reuters on Thursday that the joint bid with Sony, which is still being finalized, would offer cash for all of Paramount Global’s outstanding shares and take the company private.

Sony will hold a majority stake in the joint venture, which will own the media company and its movie library, which includes blockbuster series such as “Star Trek,” “Mission: Impossible,” and “Indiana Jones,” and TV characters such as SpongeBob SquarePants. It will be operated. According to sources.

Apollo will likely take control of the CBS broadcast network and its local television stations.

Paramount shares have fallen nearly 7% since April 3, when Reuters reported that the company had begun 30 days of exclusive negotiations with Skydance. At its last closing price of $10.97, Paramount was valued at $7.44 billion, according to LSEG data.

Paramount Global has lost more than $16 billion in value since it was created in 2019 through the recombination of CBS and Viacom. The company’s market capitalization fell below $10 billion in January.

The company’s revenue fell nearly 2% last year as consumers shifted from traditional terrestrial television to streaming services.


Sony will own a majority stake in the joint venture, which will operate the media company and movie library that includes blockbuster series like Mission: Impossible. ©Paramount/Courtesy of Everett Collection

The company’s streaming arm, Paramount+, has not been profitable despite reporting subscriber growth in recent quarters.

Paramount stock has fallen 19% since the beginning of the year, and more than two-thirds of analysts have rated the stock at “hold” or below.

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