Unlock Premium Data: Up to 50% Off InvestingProCLAIM SALE

Paramount shares drop as on report that Sony and Apollo’s bid is 'fading'

Published 05/14/2024, 03:25 PM
Updated 05/14/2024, 04:18 PM
© Reuters.  Paramount shares drop as on report that Sony and Apollo’s bid is 'fading'
PARA
-

Shares of Paramount Global (PARA) fell more than 5% in Tuesday trading after CNBC, citing sources familiar with the matter, reported that Sony Pictures (NYSE:SONY) is reconsidering its bid for the U.S. media company.

"People close to the situation that I've been speaking to of late indicate that the likelihood of a bid, at least for the full company, seems to be fading a bit," said analysts at CNBC.

"That does not mean that there would not be some sort of bid potentially forthcoming."

Last week, Reuters reported that Paramount was in talks to open its books to a consortium including Sony Pictures and Apollo Global Management, with a potential acquisition valued at $26 billion.

However, a special committee of Paramount's board, which is reviewing the company's options, allowed an exclusivity period with Skydance to lapse earlier this month.

Skydance had proposed a complex transaction, offering around $2 billion to acquire the Redstone family's holding company, National Amusements, which controls 77% of Paramount's class-A voting stock.

Paramount would then acquire Skydance in an all-stock transaction valued at approximately $5 billion. Skydance also offered a $3 billion deal sweetener, combining share buybacks and cash to help pay down debt.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.