13 MAR 2024

Apollo Global Management explores Paramount Global takeover

The private equity firm is allegedly in talks to acquire the entire of Paramount's assets, however it may also look to bid on specific assets within the conglomerate.

13 MAR 2024

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Private equity firm Apollo Global Management has reportedly initiated discussions with Paramount Global regarding a potential buyout or acquisition of select assets, as per Axios' recent reportApollo's move comes amidst competition from Byron Allen, who tendered a $14 billion bid for Paramount Global in January. Additionally, David Ellison's Skydance Media, with backing from private equity heavyweights RedBird Capital Partners and KKR, has presented an offer to Paramount Global's parent company, National Amusements. Earlier considerations by Warner Bros. Discovery to acquire portions or all of Paramount Global's assets have since been abandoned, according to The Wrap.

Apollo's bid would encompass Paramount Pictures, the CBS network, Comedy Central, BET, as well as streaming platforms Paramount+ and PlutoTV. However, Apollo's majority stake in Cox Media may pose regulatory hurdles if it pursues the acquisition of CBS's local broadcast stations, as highlighted by Axios. Given this, sources familiar with the matter suggest that Apollo may explore bidding on specific assets within the conglomerate.

Following the news, Paramount Global's stock witnessed an initial uptick of approximately 5%, though gains swiftly dissipated. As of late morning, the stock was trading marginally lower, reflecting a downtrend of nearly 20% since the year's onset.

Apollo Global Management has invested in prominent news and entertainment entities, including the acquisition of "American Idol" proprietor CKx in 2011. Its portfolio has also encompassed or currently includes interests in Barnes & Noble, Cox Media Group, Legendary Entertainment, Redbox, and Sirius Satellite Radio. Notably, Apollo acquired Yahoo Inc. from Verizon in 2021. The private equity firm's attempt to jointly bid for Starz with Roku in 2022 did not come to fruition.