Paramount Shares Leap As Investors Cheer Sony-Apollo Scenario
deadline.comParamount Global shares jumped 13% Friday as investors cheered news that Sony Pictures Entertainment is talking with Apollo Global Management about joining Apollo’s bid for Paramount.
The beleaguered stock ended the day at $12.44 after registering more than twice its normal trading volume. Shares reached their highest point since February, offering fresh evidence that many investors appear to be gravitating toward the Apollo/Sony scenario, largely for structural reasons.
Importantly, even if the two entities joined forces, they are not yet officially in the arena. For the next two weeks, David Ellison’s Skydance Media, backed by RedBird Capital and other investors, is in an exclusive negotiating window with Paramount’s controlling shareholder, National Amusements.
While Skydance appeals to many media industry vets given Ellison’s strong track record and enthusiasm for keeping Paramount Pictures intact, the deal it is pursuing has inherent strings attached.
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