Together with
The Future. Sony Pictures Entertainment is considering joining Apollo Global Management’s bid to acquire Paramount Pictures. The move would consolidate two of the major Hollywood studios (similar to when Disney acquired 20th Century Fox in 2019) and put Sony in the streaming business with Paramount+. If a potential deal is accepted, it may be DOA with the FTC, which has been more aggressive in enforcing antitrust laws.
Studio shrinkage
After having its $26 billion offer for Paramount rebuffed by majority shareholder Shari Redstone and her company National Amusements, Apollo is adding some more firepower to its takeover attempt.
- A bid from Sony and Apollo (which also has backing from Legendary Entertainment), would likely be an all-cash deal that would take Paramount private, per NYT.
- The reported scenario is that Paramount would then act as a label under Sony Pictures Entertainment, with Apollo getting its investment back by selling its stake in Paramount to Sony down the line (Legendary also has a film co-financing deal with Sony).
- But there’s a wrinkle — Sony, a Japanese conglomerate, would likely run into regulatory issues when it comes to owning CBS, an American broadcasting company.
A Sony-Apollo deal couldn’t even be considered until the 30-day exclusive negotiating window with Skydance and RedBird Capital has concluded — a deal that Hollywood prefers, but Wall Street doesn’t.
Stay tuned.
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