(Bloomberg) – Apollo Global Management has offered to buy Paramount Global’s Hollywood studios for about $11 billion, according to people familiar with the matter.
Most Read Articles on Bloomberg
This price exceeds the current stock market value of the company, which holds two classes of stock worth more than $8 billion combined. Paramount's non-voting Class B shares rose 12% to $12.51 at the New York close. Paramount also has about $15 billion in debt.
Spokespeople for Apollo and Paramount declined to comment. The Wall Street Journal reported on the asking price early Wednesday.
Selling just the studio would amount to breaking up media giant Paramount Global, which also owns established television networks such as CBS, MTV and Nickelodeon.
The Redstone family, which controls the company, believes it would be better to keep the studio, network and streaming TV service Paramount+ together and would prefer not to sell it in pieces.
Board Chairman Shari Redstone and her representatives are instead considering selling her family's holding company, National Amusements, which controls Paramount, to independent producer David Ellison. His company, Skydance Media, has partnered on films such as “Top Gun: Maverick'' and will later merge with Paramount. Ellison is the son of Oracle co-founder and billionaire Larry Ellison.
However, the deal is complex and other Paramount investors may object to the terms. Company executives said at an investor conference on March 6 that their company's objective is to “create value for all of our shareholders.”
Most Read Articles on Bloomberg Businessweek
©2024 Bloomberg LP
