Bidding $11 billion! Private equity giant Apollo to acquire Paramount Pictures
Apollo's offer exceeds the current entire market value of Paramount, which is approximately $7.7 billion
Paramount Global's stock price surged by 11.8% on Wednesday. According to media reports, private equity giant Apollo has made a $11 billion offer to acquire the film studio of this media company.
This move comes at a crucial moment as Paramount Global is considering a merger with Skydance Media, intensifying market attention and speculation on Paramount Global's future direction.
Paramount Global owns CBS, Nickelodeon, and other cable television networks, with its film studio producing classic movies such as "The Godfather," "Breakfast at Tiffany's," "Mission: Impossible," and "Star Trek." Over the years, Paramount Global's film studio has attracted many potential buyers, including Netflix.
However, Paramount Global's controlling shareholder Shari Redstone has been unwilling to sell the studio, considering it a core asset of the company. The studio was acquired by her late father Sumner Redstone in 1994, and she controls Paramount Global through her stake in the parent company, National Amusements.
Apollo's offer exceeds Paramount Global's current market value, which is around $7.7 billion. It is worth noting that while Paramount Global Studios has been highly recognized for its extensive film library and value in streaming new content, its television networks are declining as cable TV business shrinks.
If Apollo successfully acquires Paramount Global Studios, it may merge it with another Hollywood company, Legendary Entertainment. The company is the production company behind films like "Dune" and "Godzilla vs. Kong." Apollo invested $760 million in 2022 to acquire a minority stake in Legendary Entertainment