Sony, Apollo to press on with bid for Paramount’s assets

Sony, Apollo to press on with bid for Paramount’s assets

The companies are, however, backing away from making an all-cash US$26 billion offer for the movie studio.

Sony Pictures Entertainment and Apollo Global Management have signed NDAs that will allow them to look at Paramount’s books ahead of a potential bid. (Reuters pic)
NEW YORK:
Sony Pictures Entertainment and Apollo Global Management have signed non-disclosure agreements that will allow them to look at Paramount’s books ahead of a potential bid for the movie studio’s assets, the New York Times reported on Friday, citing people familiar with the matter.

The companies are, however, backing away from an initial plan to make an all-cash US$26 billion offer for Paramount, the newspaper said.

Reuters reported this month that Paramount was in talks to open its books to a consortium of the Sony movie unit and the US buyout firm. CNBC later reported that Sony was rethinking its bid, sending Paramount’s shares tumbling and helping the Japanese firm’s shares surge after upbeat earnings.

Sony and Apollo are now contemplating a variety of approaches to acquire Paramount’s assets, the New York Times said.

Paramount declined to comment on the report, while Sony and Apollo did not immediately respond to a request for comment late Friday.

Like other studios, Paramount has been struggling to recover from last year’s months-long strikes by Hollywood writers and actors, a soft advertising market, and falling cable subscriptions in the US which have eroded profits for its television business.

Paramount has also been talking with Skydance Media but earlier this month ended a period of exclusivity in the negotiations.

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