Paramount Global Declines $27 Billion Acquisition Bid from Apollo Global Management

Paramount Global (NASDAQ: PARA), the media conglomerate behind Paramount Pictures, CBS, and various cable networks, has rebuffed a substantial $27 billion acquisition offer from private-equity firm Apollo Global Management. Sources close to the bid revealed that despite the lucrative proposal, Paramount’s board special committee tasked with evaluating merger and acquisition opportunities opted not to engage with Apollo.

The $27 billion all-cash bid, submitted by Apollo on March 31, encompassed both equity and debt, aiming to acquire the entirety of Paramount Global. This followed an earlier unsuccessful $11-billion bid by Apollo to acquire Paramount Pictures alone, further highlighting the significant interest the private-equity giant has in the media company.

While Shari Redstone, Paramount’s controlling shareholder and president of National Amusements Inc. (NAI), the parent company of Paramount Global, is not directly involved in the board’s special committee due to potential conflicts of interest, the decision to decline Apollo’s bid raises questions about the company’s strategic direction.

Meanwhile, amidst these developments, Redstone has entered into exclusive negotiations with David Ellison’s Skydance Media, with talks aimed at selling her stake in NAI, potentially paving the way for a merger between Skydance and Paramount Global. Redstone’s preference has been for Paramount Global to be sold as a whole entity, rather than in separate parts, making the rejection of Apollo’s bid all the more intriguing.

Variety reported on Tuesday that Redstone and Skydance were nearing an agreement for a 30-day exclusive negotiating window after months of discussions. This further underscores Paramount’s pivot towards a potential merger with Skydance, despite Apollo’s substantial offer on the table.

In response to these developments, Paramount Global’s market cap experienced a notable surge, closing at $9.26 billion after Wednesday’s trading session, marking a 15% increase. The sudden uptick in stock price came amidst widespread speculation regarding the impending deal between Redstone, NAI, and Skydance.

Paramount Global boasts a diverse portfolio of assets, including Paramount Pictures, the CBS network, popular cable channels like Comedy Central and Nickelodeon, as well as streaming platforms Paramount+ and Pluto TV.

Paramount Global last traded at $12.00 on the NASDAQ.

Information for this briefing was found via Variety and the sources mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.