A deal to buy Paramount Global that includes Japan’s Sony Group would be expected to draw scrutiny from US regulators who vet media purchases by foreign buyers

A deal to buy Paramount Global that includes Japan’s Sony Group would be expected to draw scrutiny from US regulators who vet media purchases by foreign buyers

Paramount Global, the media conglomerate behind CBS and Paramount Pictures, is currently in the midst of a potential deal that could see it acquired by a joint venture between Sony and Apollo Global Management [1]. This news comes amidst Paramount's ongoing exclusive merger negotiations with Skydance Media [1].

The potential deal between Sony and Apollo has generated significant interest, with Paramount's shares soaring by close to 8% in early trading on Friday [2]. However, the two companies have not yet submitted an official bid, as Paramount continues its discussions with Skydance [1].

Despite Paramount's initial rejection of Apollo's $26 billion offer in January [2], the addition of Sony to the bidding process could alleviate concerns about financing [1]. Tony Vinciquerra, the CEO of Sony Pictures Entertainment, has reportedly held talks with Apollo about a potential joint bid [1].

If a deal were to be reached, it would likely involve an all-cash offer for Paramount's outstanding stock, effectively taking the company private through a joint venture [1]. The terms of the joint bid are still being worked out, and it's possible that Sony and Apollo may not make an offer for Paramount [1].

However, such a deal would undoubtedly draw scrutiny from US regulators, who are tasked with vetting media purchases by foreign buyers [1]. Paramount is currently controlled by Shari Redstone, who took control of National Amusements, the company's parent firm, in 2019 [2]. The potential involvement of foreign investors in the deal could complicate matters further.

In conclusion, the potential deal between Paramount Global, Sony, and Apollo Global Management is an exciting development in the media industry. However, it remains to be seen whether the parties will be able to reach an agreement and if so, whether it will receive regulatory approval.

References:

[1] "Sony in Talks to Join a Bid to Buy Paramount," The New York Times, April 18, 2024. https://www.nytimes.com/2024/04/18/business/paramount-sony-apollo-bid.html

[2] "Paramount Shares Surge as Sony, Apollo Reportedly Set to Make a Joint Bid for the Media Giant," Investopedia, April 18, 2024. https://www.investopedia.com/paramount-soars-as-sony-apollo-reportedly-set-to-make-a-joint-bid-for-the-media-giant-8635917