Sony and Apollo Global Management have put in a $26 billion all cash bid for Paramount Global.
Under the plan, Sony would be the majority shareholder, with Apollo ceding control to the entertainment and technology conglomerate.
According to the Wall Street Journal, which first reported the story, Apollo and Sony submitted their offer on Wednesday in the form of a letter signed by Sony Pictures Chief Executive Tony Vinciquerra and Aaron Sobel, a partner at Apollo. It is seen as a starting point for negotiations and is non-binding.
Last month, David Ellison’s Skydance entered into exclusive negotiations with Paramount, but that period of exclusivity ends today (Friday) allowing Paramount to begin talks with other potential bidders. Ellison is working with investment firms RedBird Capital and KKR in the takeover of National Amusements, the Redstone family holding company, controlled by Shari Redstone. This would be followed by a merger of Paramount itself.
On Monday, Paramount confirmed that Bob Bakish, its President and CEO, would be stepping down and it was creating a new ‘Office of the CEO’.
The new Office is headed by George Cheeks, President and CEO of CBS; Chris McCarthy, President and CEO, Showtime/MTV Entertainment Studios and Paramount Media Networks; and Brian Robbins, President and CEO of Paramount Pictures and Nickelodeon.
Paramount has already turned down a previous offer from Sony/Apollo.
