Paramount Global stock surged on Wednesday after a report said private equity company Apollo Global Management has made an $11bn offer for the media conglomerate’s film and TV studio.
News of the latest suitor was first reported by The Wall Street Journal and sent shares in Paramount Global stock soaring by nearly 12% as the price reached $12.51 after hours. Market cap climbed to $8.66bn.
Paramount Global’s value has plummeted from $21.25 exactly one year ago and $23.44 last May. The fact that a suitor values the film and TV studio more than $2bn above the current market cap of its media conglomerate parent is telling.
Paramount Pictures is arguably the jewel in the Paramount Global crown, with franchises like Mission: Impossible and Transformers, and a storied library of Hollywood classics.
Assets such as Paramount Global’s linear TV business and Paramount+ are not regarded as highly as the studio component.
The media conglomerate has been courted by several suitors in recent months. Skydance Media head David Ellison, son of Oracle founder Larry Ellison, reportedly made an offer in late January to acquire National Amusements, the Redstone family holding company which controls Paramount Global.
Like Apollo, Ellison, who has co-financed tentpoles with Paramount, is looking at acquiring the film studio.
Warner Bros Discovery has previously kicked the tyres at Paramount Global, as has the media baron Byron Allen.
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