Paramount reportedly approves buyout talks with Sony, Apollo

By Mike Murphy

Paramount Global has agreed to formally begin negotiations with a buyout group led by Sony Pictures Entertainment and Apollo Global Management, the New York Times reported Sunday, after a 30-day exclusive negotiating window with Skydance expired Friday.

A special committee of Paramount's (PARA) board of directors signed off on the new talks, the Times reported, citing sources familiar with the matter. Last week, the Sony (SONY)-Apollo (APO) group reportedly submitted a $26 billion cash offer for the company.

Deadline on Sunday confirmed the Sony-Apollo talks, but added that Skydance, the studio run by David Ellison, still remains in the mix.

According to Deadline, Paramount's controlling shareholder, Shari Redstone, prefers Skydance's bid because it would likely result in fewer regulatory hurdles.

Also read: Paramount's new 'Office of the CEO' now has a principal executive - while its ex-CEO will still collect a hefty paycheck

The Times reported that the Sony-Apollo bid could push for Apollo to control CBS and its broadcast license, as U.S. regulations could prevent Japanese-owned Sony from owning a broadcast network outright.

Meanwhile, Variety reported Friday that there are growing expectations that neither bid will ultimately succeed, due largely to the threat of legal action by investors, many of whom oppose a deal.

Paramount shares are down about 13% year to date, and are off 24% over the past year, compared to the S&P 500's SPX 7.5% gain this year and 24% gain over the past 12 months.

-Mike Murphy

This content was created by MarketWatch, which is operated by Dow Jones & Co. MarketWatch is published independently from Dow Jones Newswires and The Wall Street Journal.

(END) Dow Jones Newswires

05-05-24 1644ET

Copyright (c) 2024 Dow Jones & Company, Inc.