Sony and Apollo Propose Acquisition of US Paramount... Offering 35 Trillion Won

Japan's Sony Group is teaming up with investment firm Apollo Global Management to acquire the American media giant Paramount Global.

[Image source=Reuters Yonhap News]

According to sources cited by the Wall Street Journal (WSJ) and others on the 2nd (local time), Sony and Apollo have submitted a letter of intent to acquire Paramount valued at $26 billion (35.6 trillion KRW). This letter of intent is in the early stages and is not binding, and the two parties are expected to enter negotiations based on it.

Paramount is a massive media group owning film studio Paramount Pictures, CBS Broadcasting, MTV, Nickelodeon, Showtime, and more. However, due to accumulated losses, merger rumors have been circulating recently.

Notably, this acquisition proposal comes as Paramount’s exclusive merger negotiations with Skydance Media are set to expire on the 3rd, drawing attention. WSJ reported that the merger deal with Skydance, led by major shareholder Shari Redstone, faced shareholder opposition and resulted in the resignation of former CEO Bob Bakish. Once Skydance’s status as the preferred negotiation partner ends on the 3rd, Paramount may engage in merger discussions with other companies.

Sources explained that in the letter of intent from Sony and Apollo, Sony would be the majority shareholder, Apollo would hold a minority stake, and operational control would be transferred. The letter of intent also includes assuming Paramount’s debt, which FactSet estimates at $14.6 billion. Apollo has previously attempted to acquire Paramount Studios. Other companies interested in acquiring Paramount include Skydance, Sony, Apollo, and Warner Bros. Discovery.

Meanwhile, on the New York Stock Exchange, Paramount closed the regular trading session at $13.86 per share, up 13.05% from the previous close, following the news of the acquisition proposal by Sony and Apollo.