Los Angeles, California – Apollo Global Management, a prominent private-equity firm, has made a significant $11 billion bid to acquire Paramount Pictures and the Paramount TV studios group, according to a report.
Sources cited by The Wall Street Journal revealed that Apollo Global offered $11 billion for Paramount Global’s film and TV studio business, excluding CBS and other cable networks like BET, Comedy Central, Nickelodeon, and MTV, as well as streaming services Paramount+ and Pluto TV.
The reported offer from Apollo Global raises questions about the financial implications, as it surpasses Paramount Global’s total market capitalization of $7.3 billion as of March 19. Following the news, shares of Paramount Global saw an 11.8% increase, closing at $12.51 per share, pushing its market cap to nearly $8.7 billion. However, the stock still remains below its 52-week high of $24 per share.
Representatives for Paramount Global and Apollo Global declined to comment on the reported bid, adding to the speculation surrounding the potential acquisition.
The entertainment industry has seen various merger and acquisition scenarios involving Paramount Global in recent months. Skydance Media CEO David Ellison has engaged in discussions with Shari Redstone of National Amusements Inc., which holds a controlling stake in Paramount Global. Additionally, Allen Media Group made a $30 billion offer to acquire Paramount Global, and there were talks of a merger between Paramount Global and Warner Bros. Discovery, though that idea has been put on hold.
During Paramount Global’s Q4 2023 earnings call, CEO Bob Bakish addressed the ongoing deal talks, emphasizing the company’s commitment to creating shareholder value. He avoided commenting on specific speculations but acknowledged the company’s focus on exploring opportunities.
In another development, Paramount Global and Comcast have initiated talks about potentially uniting their streaming services, Paramount+ and NBCUniversal’s Peacock, through a partnership or joint venture.
Despite these strategic moves, Paramount Global recently announced layoffs affecting about 800 employees worldwide, amounting to an estimated 3% of its workforce. The company anticipates taking a $1 billion charge in the first quarter of 2024 for the layoffs and content-related write-offs, signaling a shift in its operational strategy.
Paramount Pictures boasts a vast library of over 1,000 film titles and rights to an additional 2,500, featuring works by renowned filmmakers such as Martin Scorsese, J.J. Abrams, and Michael Bay. The studio’s television division produces a variety of content for global distribution, including popular series like “Reacher” and “Tom Clancy’s Jack Ryan.”
With assets under management totaling $75.9 billion as of the end of 2023, Apollo Global manages a diverse investment portfolio encompassing over 190 companies, including industry giants like ADT, Legendary Entertainment, and Yahoo Inc. Their bid for Paramount Pictures and its studio assets marks a significant move in the ever-evolving landscape of the entertainment industry.