Business
Sony Joins the Bidding War for Paramount
A new bidder enters the race for Paramount and increases the offer, driving up the stock.
![](https://images.prismic.io/eulerpool/ZiKjGfPdc1huKpXv_Eulerpool-AlleAktien-Sony-mischt-im-Bieterkampf-um-Paramount-mit.jpeg?auto=false)
The Acquisition Plans for the Renowned Film Studio Paramount Take a New Turn, Boosting Stock Markets. According to The New York Times, Sony Pictures Entertainment plans to team up with the private equity firm Apollo Global Management to jointly make a bid for Paramount. This consortium is considering making a cash offer for all outstanding shares of Paramount and then taking the company private.
While Sony aims for a majority stake in the planned joint venture and wants to take over operational leadership, Tony Vinciquerra, chairman of Sony Pictures Entertainment, could lead the new company. Apollo, on the other hand, would focus on the CBS television network and local stations. This division takes into account the regulatory restrictions for foreign investors; as a Japanese company, Sony faces specific challenges that do not affect Apollo.
These developments come at a time when Paramount was already holding exclusive talks with Skydance Media, in which a merger of both companies was being considered. The leadership of the merged company was to be taken over by Skydance CEO David Ellison. These discussions were held in a context that favored a stock deal, while the Apollo-Sony offer was focused on a cash payment.
Apollo had already previously expressed a strong interest in an acquisition of Paramount with a potential offer of eleven billion US dollars for Paramount Pictures and twenty-six billion US dollars for the entire company.
Investors and Shareholders of Paramount React Positively to News of Sony's Potential Entry into the Bidding War, Leading to a Significant Increase in Paramount Shares. On NASDAQ, Paramount Global's shares temporarily rose by 9.41 percent to 12.01 US dollars.
The upcoming talks and negotiations between the involved companies will show how the takeover battle for Paramount evolves and which strategic decisions will ultimately be made.