Apollo and Paramount in talks over a potential deal – report

© Reuters. Apollo and Paramount (PARA) in talks over a potential deal – report

Apollo Global Management has recently initiated discussions with a special committee established by Paramount Global (PARA) regarding a potential acquisition or purchase of assets, as reported by Axios on Tuesday.

PARA shares fell less than 1% following the market open on Tuesday.

Apollo Global Management’s pursuit of Paramount Global would likely face competition, notably from a consortium led by David Ellison’s Skydance Media.

This group, which includes private equity giants KKR and RedBird Capital Partners, is considering an all-cash offer for National Amusements Inc. (NAI), the controlling shareholder of Paramount with 77% of its voting stock and a 10% financial interest.

Unlike the broader focus of its competitors, Apollo’s interest is specifically targeted at Paramount Global, which boasts significant assets such as Paramount Pictures, the CBS broadcaster, a range of Viacom cable networks, and the streaming platforms Paramount+ and PlutoTV.

The private equity firm might also consider bids for specific assets within Paramount’s portfolio.

Initial buzz around Apollo’s interest emerged in January but appeared to wane following reports in February suggesting the firm shifted focus away from this venture.

Meanwhile, in the broader landscape of media consolidation, discussions of potential mergers and partnerships have been afloat.

In December, a meeting took place between Warner Bros. Discovery CEO David Zaslav and Paramount Global CEO Bob Bakish about a possible merger, though these talks have since been put on hold.

Moreover, Comcast, the parent company of NBCUniversal, has reportedly considered a commercial partnership with Paramount. However, acquiring the entire company could present significant regulatory challenges, complicating any potential deal-making efforts in this direction.