Apollo Makes Offer for Paramount Studios

Private-equity firm Apollo Global Management has made an $11 billion offer to buy Paramount Global’s film and TV studio, according to The Wall Street Journal citing people familiar with the situation.

The bid comes as an independent committee of the company’s directors is reviewing another offer from Skydance Media to merge with all of Paramount, which also owns CBS, Nickelodeon and a number of other cable networks.

Paramount’s studio has long been an acquisition target. Netflix was among a number of companies that expressed interest over the past few years in buying the studio, which is behind such movies as “Top Gun: Maverick” and “A Quiet Place,” according to other people familiar with the situation.  

Apollo could join with other companies to finance a deal.

But Paramount Global’s controlling shareholder, Shari Redstone, and other board members have resisted selling the studio, which they consider the crown jewel of the company. Redstone, who is open to selling Paramount in its entirety, would have to agree to breaking up the company and allowing a sale of the studio to proceed.

Shari Redstone

Apollo’s offer is more than the entire market capitalization of Paramount Global, which is currently around $7.7 billion. While the studio business is attractive, given its vast library and the demand for fresh programming in the streaming industry, Paramount’s TV networks are declining as the cable business contracts.

Meanwhile, Skydance Media, the production company run by David Ellison, has made an offer to buy Paramount parent National Amusements and merge Skydance into Paramount. 

Redstone controls National Amusements, which owns almost 80% of the voting shares of Paramount.