Sony and Apollo are reportedly in talks to make a $26 billion bid for Paramount Global, in a move that could shake up the entertainment industry. The strategy behind the potential merger would involve maintaining theatrical releases while cutting assets in the TV sector, such as CBS, MTV, and Paramount Plus.
Sony is looking to increase their wide releases to around 20 per year in order to compete with popular streaming services. However, there are concerns in Hollywood that a Sony-Paramount merger could lead to a reduction in film output, similar to what happened after the Disney-Fox merger.
If the deal were to come to fruition, it would need approval from regulatory bodies such as the Justice Department, FTC, and FCC.
Additionally, talks are also ongoing with Skydance/Red Bird as a potential alternative to the Sony/Apollo bid.
There is speculation that Shari Redstone, the current chairwoman of Paramount Global, may decide to go it alone without making a deal with Sony/Apollo or Skydance. Sony has a history of licensing content to popular platforms like Netflix and Disney, and could continue this strategy with Paramount’s content if the merger were to happen.
The merger would necessitate changes to marketing and distribution operations, and there is a possibility that Apollo could end up with a small stake in the combined entity. The potential deal is still in the negotiation stage, with many in the industry eagerly watching to see how it will unfold.
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