Paramount Studio Valued at $11 Billion: Why Shari Redstone is Hesitant in 2025
Discover why Shari Redstone, the key shareholder of Paramount Global, remains skeptical about Apollo Global Management's $11 billion bid for Paramount's film and TV studio and explores alternative strategies.
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Essential Insights
- Shari Redstone, Paramount Global's primary shareholder, is reportedly doubtful about Apollo Global Management's $11 billion acquisition proposal for the studio division.
- According to the Financial Times, Redstone is actively negotiating with media magnate David Ellison as an alternative.
- Paramount Global's stock experienced volatility, surging after Apollo's bid news before retreating amid ongoing uncertainties.
In 2024, Paramount Global (PARA) saw its shares dip after reports emerged that controlling shareholder Shari Redstone is hesitant to accept Apollo Global Management's $11 billion offer for the company's film and television studio segment.
Initial excitement drove stock prices up following Apollo's reported bid. However, the Financial Times revealed that Redstone remains unconvinced by the financial firm's proposal and is instead pursuing a potential deal with billionaire media entrepreneur David Ellison.
Ellison's entertainment company, Skydance Media, has been in talks with Redstone over several months to acquire a controlling interest in National Amusements, the holding company that grants her control over Paramount Global. The Financial Times notes that while Skydance is still conducting due diligence and has yet to present a formal offer, both parties are optimistic about finalizing an agreement in the near future.
Should the deal come to fruition, Ellison would oversee the merged operations of Skydance and Paramount. The two firms have a history of collaboration on blockbuster franchises like "Top Gun" and "Mission: Impossible." Sources indicate that Redstone views a partnership with Ellison as a strategically superior option compared to selling to a financial investor.
Paramount Global's shares reached their lowest point since 2009 earlier this year but have since rebounded slightly, though they remain approximately 17% lower year-to-date.
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