Sony And Apollo’s Master Plan For Paramount

Last week, Sony and private equity firm Apollo showed interest in buying Paramount as a joint venture. Now, according to a few sources who don’t want to be named, Sony and Apollo are looking to split the conglomerate. For starters, Sony plans to auction off Paramount’s CBS cable channels like MTV and Paramount+ streaming services. Companies like Warner Bros. Discovery can be interested in buying these broadcast channels as it doesn’t have any yet. 

This is mainly because, according to US laws, no foreign company can own an American network, and Sony Studios is a Japanese Conglomerate Sony Group subsidiary. So, Sony either has to auction these networks or it can have Apollo apply for licenses and permits to run these broadcast channels. 

Moreover, Sony plans to combine Paramount Pictures, which is home to blockbuster franchises like The Godfather, Top Gun, and Mission Impossible, with its own business. Sony will also get the rights to well-known characters like Teenage Mutant Ninja Turtles and SpongeBob SquarePants.

Sony and Apollo are expected to likely operate the media giant as a joint venture, with Sony holding the majority shares and Apollo holding minority stakes. This will allow Sony to combine Paramount Studios’ distribution and marketing functions with its own business operations. It is expected that, over time, Apollo will leave the joint venture, leaving Sony as the sole owner of Paramount.

The deal is not finalized and will most likely require clearance from the Committee of Foreign Investment In the USA, the Washington-based panel scrutinizing foreign investment deals. Stay tuned to TradeFlock for new updates on the matter. 

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