According to people familiar with the matter, Sony and Apollo Global Management are considering joining forces to bid for film and television giant Paramount Global.
The Zhitong Finance App learned that, according to people familiar with the matter, Sony (SONY.US) and Apollo Global Management (APO.US) are considering joining forces to bid for film and television giant Paramount Global (PARA.US).
People familiar with the matter said that the two companies have yet to submit an official offer. Last week, Tony Vinciquerra, head of Sony Pictures Entertainment, discussed cooperation with Apollo.
CBS (CBS), MTV, and Paramount Universal, the parent company of other television networks, are in exclusive negotiations with SkyDance Media. Skydance Media is an independent film and television company led by David Ellison, son of Oracle (ORCL.US) CEO Larry Ellison.
According to reports earlier on Thursday, Sony Apollo will buy shares in Paramount Global in cash and privatize Paramount Global through a joint venture.
Boosted by this news, Paramount Global rose nearly 14% after the market. Sony declined to comment.
According to information, Sony bought the American Columbia Pictures Company in 1989. As of now, the company that creates famous movie series such as “Spider-Man” and “Ghostbusters” is the only major Hollywood studio that still doesn't have GM's streaming service. The acquisition of Paramount Global will greatly increase its exposure on traditional TV channels, which currently continue to be robbed by streaming media.
Paramount Global is controlled by Shari Redstone through a family business called National Amusement. National Amusement holds 77% of Paramount Global's voting shares and will receive cash in accordance with an agreement with Skydance. Independent members of Paramount Global's board of directors are weighing Skydance's proposal, which would merge Skydance's business with Paramount Global.