Paramount and Apollo in talks for strategic deal, says report

Apollo Global Management is in discussions with Paramount Global (PARA) about a possible acquisition or asset purchase.

According to a report by Axios on Tuesday, a special committee formed by Paramount Global is engaging in these preliminary talks, signaling a new chapter in the ongoing saga of media consolidations.

PARA stocks fall a tad

Following the announcement of the talks, Paramount Global’s shares experienced a slight dip, falling less than 1% on Tuesday.

Who else is in the race?

However, Apollo’s bid for Paramount does not go unchallenged.

A consortium led by David Ellison’s Skydance Media, which includes heavyweights such as KKR and RedBird Capital Partners, is reportedly preparing an all-cash offer for National Amusements Inc. (NAI).

NAI holds a dominant position as the controlling shareholder of Paramount, possessing 77% of its voting stock and a 10% financial stake.

Apollo’s targeted approach

Apollo Global Management’s interest specifically zeroes in on Paramount Global and its array of valuable assets.

These include Paramount Pictures, CBS broadcaster, various Viacom cable networks, and streaming platforms such as Paramount+ and PlutoTV.

Unlike its rivals, Apollo is considering not only a full acquisition but also the possibility of purchasing specific assets within the Paramount portfolio.

Shifts in Apollo’s focus

Initial interest from Apollo was noted in January, though enthusiasm seemed to diminish in February with reports indicating a pivot in the firm’s strategy.

Despite these fluctuations, the dialogue around media mergers continues to heat up, with potential partnerships and consolidations being a central theme.

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