Sony Pictures Entertainment and Apollo Global Management are in discussions regarding a potential joint bid for Paramount Global, as reported by the New York Times. While sources close to the situation have confirmed the talks, they have highlighted several challenges that would need to be addressed before a formal offer could be made.
Previously, Apollo had considered making a $26 billion bid for Paramount Global independently, followed by an $11 billion offer for the Paramount Pictures film studio. The proposed deal would involve Sony Corp. contributing Sony Pictures Entertainment to a joint venture with Paramount Global, with both Sony and Apollo providing cash to support the transaction that would take Paramount Global private.
In this arrangement, Sony would emerge as the majority owner of the combined entity, which would also include CBS. However, a key hurdle would be devising a structure for the deal that accounts for the 28 TV stations owned by CBS, as FCC regulations prohibit a foreign entity from holding majority ownership of broadcast TV stations.
As of now, a representative for Apollo has not issued a statement in response to requests for comment, while a Sony spokesperson has declined to provide any comments on the matter. The situation is still developing, and further updates are expected in due course.
