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Sony has officially decided not to submit a new bid for Paramount Global, choosing not to counter the ongoing merger between Paramount and Skydance Media. Sony Group President, COO, and CFO Hiroki Totoki announced during a recent earnings call that acquiring Paramount does not align with Sony’s strategic or financial plans.
Earlier this year, Sony and Apollo Global Management proposed a $26 billion offer to take Paramount private, including the assumption of debt. However, the deal did not advance as Sony reconsidered its strategy and potential risks. Totoki emphasized that acquiring Paramount would pose significant risks to Sony’s capital allocation structure.
The decision follows the July 7 announcement of a definitive agreement between Paramount Global and Skydance Media. This two-part transaction involves Skydance purchasing National Amusements Inc. and merging with Paramount. The agreement allows a 45-day window for Paramount to solicit better offers, which expires on August 21. If a superior bid emerges, Paramount would owe Skydance a $400 million breakup fee.
