You're probably familiar with the company Paramount since it has been a known player in the entertainment industry for years. Despite the impressive number of titles under its belt, the entertainment giant is facing financial issues that an acquisition might solve. Enter, Sony and Apollo.

Sony vs Apollo for the Paramount Acquisition

The company itself has already opened negotiations and anyone can join the bidding war. However, they will have to compete with the top bidders, which right now are Sony Pictures Entertainment and private equity firm Apollo. 

Willing to pony up $26 billion in cash, the two are the top prospective buyers for Paramount after both submitted a nonbinding letter of interest offering to acquire the company. Even with an enticing offer, Paramount's committee is still looking into an alternative route.

Before the buyers entered talks about the deal on Saturday, Paramount was already in talks with Hollywood studio Skydance not for an acquisition, but a merger. The special committee overseeing the matter is still pushing for that option.

Of the three options between the two acquisition offers and one merger, Sony's might be the deal that could face certain issues. As mentioned in The New York Times, there are regulations that restrict foreign ownership of broadcast networks. 

Given that Paramount owns CBS and Sony and is a Japan-based company, Apollo might win the bidding war with it being based in the US. Even when that has been decided, Paramount's parent company National Amusements can still block the deal. 

Even with the power to stop the deal in its tracks, sources familiar with the matter said that many shareholders are leaning into the acquisition options as opposed to the merger with Skydance. Of all the offers, Apollo's is the one with the least resistance considering restrictions and preferences. 

If things don't work out for the individual deals, there's still the choice to make Sony a controller shareholder for most of the companies under Paramount, while Apollo would hold a minority stake. Sony would be taking the Paramount studio under its belt. 

Read Also: Paramount Global Shares Rise as Streaming Subscription Increases

How Big is Paramount?

To give an idea of how big an acquisition Paramount is, popular entertainment companies like Nickelodeon, MTV, CBS, and Paramount Pictures are owned by it. Paramount Pictures has produced, co-produced, and distributed many titles that you would recognize.

The "Mission: Impossible" movies, for instance, are produced or co-produced by Paramount. It also co-produced many popular films in recent years like "Sonic the Hedgehog," "Transformers: Rise of the Beasts," "Top Gun: Maverick," and "A Quiet Place Part II."

Still, the company is facing some financial difficulties, especially with its streaming service. Even though it saw an increase in subscriber numbers, Paramount Global lost $490 million in the last quarter of 2023, as reported by Indie Wire. 

The losses are mostly from its Paramount+ service, which had already lost $238 million in the previous parter. The company is confident that it will see a growth in revenue and even subscriber count this 2025.

Related: Showtime Streaming Service Bids Farewell to Start Paramount+ Package