Paramount bidders with $26 bn outline anticipate special committee evaluating options

Paramount bidding awaits evaluators: Hectic negotiations and uncertainty have marked Paramount Global as rival bidders eagerly await the verdict of a special committee tasked with evaluating offers for the renowned studio. Paramount's negotiations with Skydance Media did not yield any concrete results, paving the way for other potential suitors to step in.

A high-stakes battle is likely as Sony Pictures Entertainment and private equity firm Apollo Global Management have shown keen interest in acquiring Paramount. 
However, despite sending a letter expressing their intent, Sony Pictures Entertainment is yet to receive any communication from Paramount's special committee, leaving the company and its partner Apollo Global Management in limbo.

David Ellison's Skydance, which has been holding serious  discussions with Paramount and its controlling shareholder, Shari Redstone, finds itself reassessing its options in light of recent developments. The outcome of this evaluation could majorly impact the future landscape of the entertainment industry.

Paramount's struggles are emblematic of broader challenges facing the film and television sector. 

The aftermath of last year's strikes by Hollywood writers and actors, coupled with a soft advertising market and declining cable subscriptions in the United States, has taken its toll on the studio's profitability. Additionally, Paramount's streaming service, Paramount+, lags behind competitors like Netflix and Disney+ in subscriber numbers, further exacerbating its woes.

The hope sparked by the merger of CBS and Viacom in 2019, subsequently rebranded as Paramount Global, has yet to materialize into tangible gains. Instead, Paramount's shares have plummeted by over 65 per cent, shedding more than $14 billion in market value since the merger.

As the special committee deliberates on Paramount's future, investors, industry insiders, and entertainment enthusiasts alike eagerly await the outcome of this pivotal moment. The decision made by the committee will not only determine the fate of Paramount Global but could also reshape the dynamics of the entertainment landscape for years to come. With billions at stake and the future of an iconic studio hanging in the balance, the suspense surrounding Paramount's next move continues to captivate attention across the industry.

(With Reuters inputs)