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Apollo wants to buy Paramount Studios for $11 Billion

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Apollo Global Management has made a substantial $11 billion offer to acquire Paramount Global’s studios.

Wall Street Journal first disclosed this on Wednesday.The bid arrives amidst Paramount Global contemplating another offers from Skydance Media and RedBird Capital Partners, further intensifying the competition for the entertainment company’s assets.

The proposed deal by Apollo entails Paramount Global’s film and television studios, which notably produced blockbuster hits like “Mission: Impossible–Dead Reckoning” and “Killers of the Flower Moon” last year, to be separated from the rest of the business. Notably, the amount offered significantly surpasses Paramount Global’s market capitalization, which stood at $7.7 billion as of the latest report.

This development follows recent speculation, with Axios reporting about a week prior that Apollo Global Management was in discussions regarding a potential offer or bid for Paramount assets. The news of Apollo’s $11 billion bid caused a surge in Paramount shares, with the stock price climbing over 11% to close at $12.51 after the deal was disclosed.

It is important to note the broader context surrounding Paramount Global’s strategic considerations. While Apollo’s offer appears focused solely on Paramount Pictures, the renowned studio within Paramount Global’s portfolio, the company also encompasses CBS Entertainment Group and a range of television channels under Paramount Media Network, including iconic brands like MTV and Nickelodeon.

Paramount Global’s controlling shareholder, Shari Redstone, has expressed interest in selling the entire company. Reports indicate that Skydance Media, owned by David Ellison, made an offer in December, with plans to partner with RedBird Capital for financing.

Additionally, discussions between Paramount CEO Bob Bakish and Warner Bros. Discovery CEO David Zaslav about a potential merger have reportedly stalled since December.

In terms of valuation, Marc Rowan, CEO and co-founder of Apollo, boasts an estimated net worth of approximately $6.6 billion.

Apollo Global Management, founded in 1990 by Rowan along with billionaires Josh Harris and Leon Black, now manages assets totaling around $600 billion, solidifying its position as a major player in the private equity landscape.

 

 

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