Los Angeles, CA – The highly anticipated sale of Paramount Global to David Ellison’s Skydance Media might not go as planned with Sony and Apollo Global Management preparing to make a more lucrative offer, according to an exclusive source. The 30-day exclusive negotiation period between PARA and Skydance is set to expire on May 3, raising speculation about the possibility of a rival bid from Sony and Apollo.
As rumors swirl about Sony potentially teaming up with Apollo for a joint bid, industry insiders and analysts are closely watching Shari Redstone, Paramount’s controlling shareholder, to see how she will respond to the new proposal. David Katz, President and CIO of Matrix Asset, emphasized that the potential offer from Sony and Apollo could be worth up to $29 billion, significantly higher than Skydance’s current bid. Katz urged the board of directors to carefully consider the new proposal, believing it could benefit all Paramount shareholders.
The increased interest from Sony and Apollo comes as concerns grow over the viability of the Skydance deal. Shareholders, including prominent investors like Mario Gabelli and Matrix Asset Holdings, have voiced their opposition to the current agreement, citing concerns about shareholder dilution and potential litigation risks. The internal disputes surrounding the deal have already led to several resignations from Paramount’s Board of Directors, further complicating the situation.
Despite the challenges facing the Skydance deal, there is still a possibility for other bidders to enter the picture. Experts believe that if Skydance’s bid falls through, alternative buyers may step in to acquire Paramount. Some speculate that tech giants or well-known investors could express interest in the company, opening up the potential for a competitive bidding process. With uncertainties surrounding the current deal, Paramount’s future remains uncertain as stakeholders await the outcome of the ongoing negotiations.