Sony, Apollo reportedly plan to break up Paramount if their bid succeeds
By Mike Murphy
Paramount Global's vast entertainment empire would be broken up if a buyout bid from Sony Pictures Entertainment and Apollo Global Management succeeds, according to a new report.
The New York Times reported late Wednesday that the plan would be to sell off the CBS broadcast network, along with Paramount's cable channels and its streaming service, Paramount+. Paramount Pictures would be merged with Sony's existing movie studio, the report said, while Sony and Apollo would maintain Paramount's TV and movie library and intellectual property.
Sony (SONY) and Apollo (APO) have not yet presented the plan to Paramount (PARA) or its advisers, the Times said, citing sources familiar with the matter. According to the report, Shari Redstone, Paramount's controlling shareholder, would prefer not to break up the company, but it wouldn't necessarily be a dealbreaker.
Breaking up Paramount could ease regulatory concerns over an acquisition, chief among them that U.S. laws would prevent Japanese-owned Sony from owning a broadcast network outright.
Separately, Reuters reported Wednesday that Paramount is considering opening its books to Sony and Apollo, which could clear the path for their $26 billion takeover offer.
A window of exclusivity for a rival bid by Skydance, the studio run by David Ellison, expired last week.
-Mike Murphy
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(END) Dow Jones Newswires
05-08-24 2047ET
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