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Apex Capital Trust has made a bold move by offering to acquire Paramount Global for up to $43 billion in an all-cash deal. This comes amid ongoing merger discussions between Paramount and Skydance Media, led by David Ellison. Apex’s bid includes $35 per share for Paramount’s Class A voting shares and $23.28 per share for Class B non-voting shares, representing a 33% premium over recent stock prices.
The proposed acquisition would also involve Apex assuming $15.8 billion in debt and covering a $400 million break-up fee if Paramount opts out of the current agreement with Skydance Media. Apex, owned by David Baker, plans to infuse $10 billion in working capital to strengthen Paramount’s business operations.
Paramount’s board has a 45-day “go-shop” period, allowing it to consider competing offers beyond the Skydance deal. This period could bring additional bids, adding complexity to the decision-making process. The media landscape has seen considerable consolidation, and the potential acquisition of Paramount underscores the ongoing reshuffling of major industry players.
Skydance Media’s previous offer included acquiring National Amusements, the controlling shareholder of Paramount, for $2.4 billion, further highlighting the intense interest in the storied media company. Paramount’s current challenges, including a reported operating loss of $417 million last quarter, contrast with Skydance’s anticipated annual revenue of $1 billion.
This bidding war signifies a crucial moment for Paramount, with significant implications for its future direction and ownership. The final decision will likely hinge on the strategic vision of the bidders and the value they bring to Paramount’s diverse assets, including CBS, Paramount Pictures, and its streaming services.