Sony Group, Apollo Global join race to acquire Paramount Global: Report

Sony Paramount acquisition: Sony Group and US investment fund Apollo Global Management have put forward a joint proposal to acquire Paramount Global for $26 billion, according to a report by the Wall Street Journal. This move comes as Sony's film arm, Sony Pictures Entertainment (SPE), seeks to bolster its portfolio of intellectual property.

The non-binding buyout offer was submitted to Paramount by Sony Pictures Entertainment (SPE) and Apollo on Wednesday, the report said. While both Sony Group and SPE have refrained from commenting on the matter, reports have indicated that the proposed acquisition price is $26 billion.

If successful, this deal would mark one of the largest overseas acquisitions by a Japanese company to date, comparable to SoftBank Group's acquisition of UK chipmaker Arm in 2016 for over $32 billion.

The primary objective behind Sony's interest in Paramount is to expand its movie library. Despite being associated with prestigious studios like Columbia Pictures, SPE has comparatively fewer blockbuster films in its repertoire compared to industry giants like The Walt Disney Company, which boasts ownership of Marvel and Star Wars franchises.

In the evolving landscape of the movie and television drama industries, characterised by a shift towards streaming-based models, securing valuable intellectual property has become paramount. Sony, particularly in the US market, lacks its own streaming or broadcast services beyond Crunchyroll, an anime streaming platform. Thus, acquiring established IP becomes essential for its future growth strategy.

Paramount Pictures, founded in 1912, holds a significant position in Hollywood and owns iconic franchises such as "The Godfather" and "Forrest Gump."

For Sony Group, the move aligns with its broader strategic shift from electronics to entertainment, including music and movies. Over the past six years, under CEO Kenichiro Yoshida's leadership, Sony has invested heavily in entertainment-related businesses, including music publishing and gaming. Strengthening SPE's position is deemed critical to Sony's overarching strategy.

In response to inquiries about Hollywood reorganisation, Yoshida previously told Nikkei Asia that the company is open to mergers and acquisitions that enhance creativity, highlighting the appeal of studios with valuable intellectual property.