Paramount Global (NASDAQ: PARA) stock surged over 13% in the intraday trading following reports indicating discussions between Sony and Apollo Global Management regarding a potential collaboration in bidding for the media giant.
The New York Times reported that Sony Pictures Entertainment and Apollo Global Management are discussing the possibility of jointly bidding for Paramount Global (PARA).
The report states that Sony and Apollo are currently discussing, but they haven’t submitted an official bid yet because Paramount Global is exclusively engaging in merger talks with Skydance Media.
The reported discussions come at a time when Paramount’s potential deal with Skydance Media has faced significant investor pushback, reflecting uncertainties and concerns surrounding the proposed merger.
Paramount had previously rebuffed Apollo Global Management’s initial offer to acquire the company for over $26 billion, including debt, citing concerns about the investment firm’s financing arrangements.
Paramount Global boasts valuable assets, including its iconic Hollywood studio and renowned franchises such as “Star Trek” and “Transformers” movies.
S&P Global Downgraded Paramount Rating to “Junk”
Last month, S&P Global Ratings lowered Paramount’s credit rating to “BB+” from “BBB-“, placing it in the junk category. The firm cites concerns over its substantial debt burden and its inability to generate profits from streaming operations.
S&P said in its statement last month,
“Paramount will need to execute its plan to substantially improve streaming losses over the next two years to mitigate further downside rating pressure.”
Paramount has been at the center of takeover speculation over the past year. In December, reports surfaced of early talks between Paramount and Warner Bros. Discovery (WBD) to create a potential entertainment powerhouse. In addition, media entrepreneur Byron Allen reportedly made a $30 billion offer for the company’s outstanding stock and debt earlier this year.
Paramount (NASDAQ: PARA) Stock Price Action
At the time of this report, PARA stock stands at $12.44, indicating a 13.40% increase from the previous trading session. This week, it has experienced a 13.50% surge in value. Trading activity has witnessed 45,558,317 (45.55 million) shares changing hands, surpassing the average daily volume of 20.04 million.
NASDAQ: PARA PARA PARA shares PARA stock PARA stock news Paramount Global
