Sony Pictures Entertainment and private equity giant Apollo Global Management have formally expressed interest in acquiring Paramount for about $26 billion, according to two people familiar with the matter, a move already in the midst of chaos. This adds drama to the deal-making process.
The non-binding expression of interest, sent in a letter this week, comes as Paramount approaches an agreed-upon Friday deadline for the end of an exclusive negotiating period with Skydance, the Hollywood studio run by tech heir David Ellison. It was held inside. Paramount has been in negotiations with Skydance for months about a complex deal that would involve a merger and an investment from private equity firm Redbird Capital Partners.
The new joint statement of interest will make Sony a significant majority and controlling shareholder, and Apollo will become a minority shareholder. The proposed all-cash deal is appealing to Paramount shareholders who have opposed the Skydance deal, citing concerns that it would benefit the company's controlling shareholder, Shari Redstone, at the expense of other companies. There is a possibility that it will become something similar.
Paramount had no immediate comment.
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