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The
companies have yet to approach Paramount, which is in exclusive
deal talks with Skydance Media, an independent studio led by
David Ellison, though some investors have urged Paramount to
explore other options.
The competing bid, which is still being structured, would offer
cash for all outstanding Paramount shares and take the company
private, the source said.
Sony would hold a majority stake in the joint venture and
operate the media company, and its library of films, including
such classics as "Star Trek," "Mission:Impossible" and "Indiana
Jones," and television characters like SpongeBob SquarePants,
according to the source.
Sony Pictures Entertainment Chairman Tony Vinciquerra, a veteran
media executive with deep experience in film and television,
would likely run the studio and take advantage of Sony's
marketing and distribution.
Apollo would likely assume control of the CBS broadcast network
and its local television stations, because of restrictions on
foreign ownership of broadcast stations, the source said. Sony's
parent corporation is headquartered in Tokyo.
The New York Times first reported the Sony-Apollo discussions.
Paramount and Sony declined comment. Apollo could not be reached
for comment.
The private equity firm previously made a $26 billion offer to
buy Paramount Global, whose enterprise value at the end of 2023
was about $22.5 billion.
A special committee of Paramount's board elected to continue
with its advanced deal talks with Skydance, rather than chase a
deal "that might not actually come to fruition," said two people
with knowledge of the board's action.
The board committee is evaluating the possible acquisition of
the smaller independent studio in a stock deal worth $4 billion
to $5 billion.
Skydance is negotiating separately to acquire National
Amusements, a company that holds the Redstone family's
controlling interest in Paramount, according to a person
familiar with the deal terms. That transaction is contingent
upon a Skydance-Paramount merger.
(Reporting by Dawn Chmielewski in Los Angeles; Editing by
Stephen Coates)
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