Sony enters bidding war for Paramount

Sony enters bidding war for Paramount

Sony has reportedly entered the bidding war for Hollywood rival Paramount. According to media reports, the Japanese electronics giant is officially participating in the $26 billion bid from the financial firm Apollo. The New York Times and the Wall Street Journal reported on it. Sony is reportedly planning to take a majority stake, which could increase shareholder interest in selling Paramount.

Paramount previously had a merger offer from the film production company Skydance. However, Paramount had only negotiated with Skydance. However, this exclusivity is about to end. According to media reports, there are disputes between key shareholder Shari Redstone and other shareholders regarding Skydance's offer.

The Skydance proposal has drawn criticism due to Paramount's share structure. There are approximately 41 million shares with voting rights and over 600 million shares without voting rights. The takeover of the majority shareholders could mean control of the entire group. Skydance reportedly planned to first acquire Redstone's National Amusements holding company and then take over Paramount for a purchase price of $5 billion.

With Sony and Apollo entering the bidding war for Paramount, the dynamics of the sales process are likely to change. This development could significantly influence the course of the bidding competition so far. Following the reports, Paramount shares temporarily rose by 13.05 percent to $13.86 on the NASDAQ.