Sony Pictures Entertainment Inc. and Apollo Global Management Inc., an investment firm, are reportedly in discussions to form a partnership aimed at acquiring Paramount Global, according to The New York Times. People familiar with the matter have indicated that while the terms of the bid are still under negotiation, the potential alliance could lead to a significant consolidation in the media industry.

Paramount Global’s shares surged by 9.3% to $11.29 each at 4:31 ET following the news of these discussions. Despite the interest from Sony and Apollo, Paramount is currently in exclusive talks with Skydance Media regarding a possible merger, which has temporarily stalled any formal bids from other parties.

Previously, Apollo had made an offer to purchase Paramount for $26 billion, which was turned down due to concerns over the investment firm’s financing capabilities. However, a new joint bid from Sony and Apollo, reportedly in all cash, could alleviate those financial concerns and put them in a stronger position to negotiate a deal.

If Sony’s offer is successful, Paramount would likely be integrated into Sony’s media structure, operating as a distinct label. This move could enhance Sony’s content portfolio and market position by adding Paramount’s extensive library of films and network assets to its media and entertainment business.

However, the sources noted that there is still uncertainty surrounding the bid. “It’s possible that Apollo and Sony might not make an offer for Paramount,” one source mentioned, highlighting the tentative nature of the discussions.

The potential acquisition comes at a time of significant transformation in the media sector, with companies looking to bolster their content offerings and streaming capabilities in response to changing consumer preferences and competitive pressures.

Investors and industry watchers are closely monitoring the situation, as the outcome could have wide-ranging implications for the media landscape, potentially reshaping content access and distribution on a global scale.

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