Paramount Global (NASDAQ:PARA) shares surged on reports private equity firm Apollo Global Management (NYSE:APO) and Sony Group Corp (NYSE:SONY) are considering a joint bid for the media company.
A person familiar with the matter told media outlets that Sony Pictures Entertainment chief Tony Vinciquerra has been in talks with Apollo over the last week about working together on an offer.
They have not submitted an official takeover proposal to Paramount, which is in exclusive deal talks with Skydance Media, a studio led by American film producer and billionaire David Ellison.
According to the source, Apollo-Sony’s competing bid would offer cash for Paramount’s outstanding shares and take the company private.
Sony would hold a majority stake in the joint venture. The studio would likely be led by Vinciquerra, an experienced media executive, and it would leverage Sony’s marketing and distribution.
Apollo, meanwhile, would likely take control of the CBS broadcast network and its local TV stations, the source said, as Tokyo-based Sony would be unable to do so due to laws regarding foreign ownership of broadcast stations.
Apollo has previously offered $26 billion to buy Paramount, valued at $22.5 billion at the end of 2023.
Paramount shares added 8.9% at about $12 shortly after Friday’s opening bell.