Sony Group Corp (NYSE:SONY) and private equity firm Apollo are preparing a $26 billion cash bid for Paramount Global (NASDAQ:PARA), challenging Skydance Media's offer as their exclusive negotiation period nears expiration.
Sony would lead the investment with majority control, while Apollo would hold a minority stake, without the need to refinance Paramount's existing $16 billion debt.
The proposed purchase price ranges from $17 to $19.50 per share. This development follows a surge in Paramount’s non-voting shares by 12.5% after news of the bid was reported.
Apollo, backing this bid with full equity financing, previously approached Paramount with the same offer.
Sony and Apollo plan to integrate their investment, Legendary Entertainment, into the deal.
Skydance, supported by RedBird and KKR, has proposed a complex acquisition involving National Amusements and a stock deal for Skydance.
According to reports overnight, leading shareholders favour Apollo's simpler, higher premium plan. Paramount's board is currently reviewing the offers.