Apollo Global has offered $11 billion to buy Paramount Pictures

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By journalsofus.com

According to a published report, Apollo Global Management, a leading private-equity firm, has submitted an $11 billion bid to acquire Paramount Pictures.

The Wall Street Journal, citing unnamed sources, reported that Apollo Global had offered $11 billion for Paramount Global’s film and TV studio business. This obviously won’t include CBS, Paramount Global’s cable networks like BET, Comedy Central, Nickelodeon and MTV, or the streaming business unit that includes Paramount+ and Pluto TV.

It’s unclear how the math of Apollo’s reported offer for Paramount Pictures works, as that price exceeds Paramount Global’s entire market capitalization ($7.3 billion as of March 19). Paramount Global shares closed 11.8% higher at $12.51/share on Wednesday, boosting its market cap to about $8.7 billion, the Journal reports. The stock remains well below its 52-week high of $24/share.

A representative for Paramount Global declined to comment. An Apollo Global spokesperson did not respond to a request for comment.

In recent months, Paramount Global has been the target of several different M&A scenarios. Skydance Media CEO David Ellison is in talks with Shari Redstone about buying NAI, whose National Amusements Inc. owns a controlling stake in Paramount Global. Byron Allen’s Allen Media Group made an unsolicited takeover offer of $30 billion to acquire Paramount Global, although it is not clear who its financial partners are. Paramount chief Bob Bakish and Warner Bros. Discovery CEO David Zaslav briefly discussed the idea of ​​merging WBD and Paramount Global in December, but that idea has been rejected.

Last month on Paramount Global’s Q4 2023 earnings call, Bakish was asked about reports of deal talks. “In terms of M&A, look, at Paramount, we’re always looking for ways to create shareholder value. And to be clear, this is for all shareholders, Bakish said. “But I am not going to comment on any speculation or timeline and so on. But it’s clearly something we’re focused on.

Last month, Paramount Global announced it was laying off about 800 employees worldwide, an estimated 3% of its total workforce. “These adjustments will help us maintain our momentum and enable us to execute our strategic vision for the coming year — and I strongly believe we have an excited future,” Bakish said in a memo to employees on Feb. 13. There’s a lot more to happen.” The company said it expects to take a $1 billion charge for layoffs and material write-offs in the first quarter of 2024; About $800 million of that will be programming-related.

Apollo Global had $75.9 billion in assets under management as of the end of 2023, with an investment portfolio of more than 190 companies, including ADT, Cox Media Group, Legendary Entertainment, Redbox, and Yahoo Inc.

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