The buzz around the sale of all or part of Paramount Global took a big step today, and it could have a big impact on Star Trek. Earlier this year, it was reported that the private equity firm Apollo Global had expressed interest in Paramount Global, and today the Wall Street Journal is reporting they have put in a formal bid, but not for all of Paramount Global.
$11 Billion for the studios
According to the WSJ report, Apollo Global Management has made an $11 billion bid for Paramount Global’s film and TV studios. While it didn’t get into specifics, this would presumably include all of Paramount Global’s production studios, including Paramount Pictures, who produce Star Trek feature films, and CBS Studios, who produce Star Trek television shows and technically own the rights to Star Trek.
The $11 billion bid would be paying a premium, as it is more than the $9 billion market value for all of Paramount Global, but it would presumably include all the intellectual property owned by those studios. Apollo is apparently not interested in the CBS broadcast network, cable channels (like MTV and Comedy Central), or streaming services (Pluto and Paramount Plus).
Apollo Global is a massive private equity firm with assets valued over $1/2 trillion. The firm specializes in “alternative assets,” which often include distressed companies. It has a record of turning around companies, such as when it purchased Hostess out of bankruptcy in 2013, turning the company around and selling it for a big profit later. It currently has a number of media holdings, including Cox Media Group and a minority stake in Legendary Entertainment, makers of the hit Dune movies.
Paramount Global stock jumped almost 12% today with news of the Apollo bid, which is seen as a good deal for investors. According to the Wall Street Journal, a special committee is assessing different potential deals for the board of Paramount Global. One of those is a reported bid to merge David Ellison’s Skydance production company with Paramount, but that deal would be structured much differently, via purchasing Shari Redstone’s National Amusements and therefore getting her controlling interest in Paramount Global.
At this point, many details are still unclear about Apollo’s bid and its likelihood of being approved by the board. Any of these big deals for all or part of Paramount Global could take well over a year to be finalized. Regardless, any deal would likely impact the future of the Star Trek franchise and of course Paramount Plus, the current home to (almost all) of the new original Star Trek television shows. But again, that impact may not be felt for years.
TrekMovie will continue to monitor the business news that could have an impact on Star Trek and do our best to keep fans up to date.
