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Sony Pictures and Apollo Global are considering joint bid for Paramount

Sony Pictures Entertainment and Apollo Global Management are considering a possible joint bid for Paramount Global.

News of the discussions was first reported by the New York Times. Sources close to the situation confirmed the talks, but warned that numerous obstacles must be overcome before the parties can formally submit a bid. Apollo previously made a $26 billion bid for Paramount and before that it made an $11 billion bid for the film studio Paramount Pictures.

The concept for the deal would see Sony Corp. Sony Pictures Entertainment would contribute to the joint venture that would include Paramount Global. Sony and Apollo would both contribute cash to help finance the transaction that would take Paramount Global private. Sony would be the majority shareholder of the expanded entity that also includes CBS. Sony and Apollo would have to come up with a structure for the deal for the 28 TV stations that CBS owns, as FCC rules prohibit a foreign entity from having a majority stake in broadcast television.

A representative for Apollo did not immediately respond to a request for comment. A Sony spokesperson declined to comment.

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