Paramount's ousting of CEO Bob Bakish was a mistake, Ariel Investments co-CEO says
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- Опубліковано 31 тра 2024
- Paramount Global (PARA) is caught in the middle of a bidding war between Skydance Media and a joint offer from Sony (SONY) and Apollo Global Management (APO). Paramount CEO Bob Bakish has stepped down from his role, replaced by an "Office of the CEO" consortium comprised of three chief executives from across Paramount's top broadcast networks.
Ariel Investments Co-CEO John Rogers, who is also a Paramount shareholder, finds Bakish's ousting to be a "pretty extraordinary" event during major M&A talks. Rogers sits down with Catalysts to share his thoughts on these headlines and what is ultimately being offered by prospective bidders.
"We really do believe that Apollo, from what we've read, again, has a much stronger deal... Apollo has plenty of cash, a potentially great partner with Sony. it just makes much more sense to have those kind of experienced hands take over this company, pay out all of us A&B shareholders, get cash for our shares - it makes all the sense," Rogers says. "Skydance is an up-and-coming company, it's smaller. It's something we don't know whether it can work, but the price they're willing to pay and the valuations that we've seen, it's just a significant discount from the value we would get from Apollo."
Rogers also weighs in on what to expect from Berkshire Hathaway (BRK-A, BRK-B) CEO Warren Buffett at the company's annual shareholders meeting on Saturday, May 4.
Disclosure: Apollo Global Management is the parent company of Yahoo and Yahoo Finance.
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Sony-Apollo deal is much much better for everyone involved than the one with skydance
As things stand now, the Sony-Apollo is the best deal currently. Hopefully, if Sony-Apollo wins this deal with the Paramount Global board of directors, they reduce the amount of employees being laid off. M&A are usually bad for employees.
@@JasonTan-9757 There are going to be a lot of layoffs. Paramount just had layoffs recently, but it'll be nothing like what we'll see with Sony. There are a multitude of redundancies between the two companies when it comes to movies and tv. They will look to layoff as many people as they can as quickly as they can, but then you can expect another round of layoffs in a year or two.
No one GAF about Berkshire.
Apollo will bleed it dry.
Neither group should get the company. Paramount needs to work out their situation and problems on their own. These two groups will only add on more debt to an already $14billion total.
In an ideal world, I would agree. However, the controlling shareholder wants to sell, so it is not really up to us.
Part of the deal would be Sony and Apollo clearing off that debt. That's part of the 26 billion.
@@TopGunZero Not actually. They’re either assume that debt or pay it off only to refinance the entire purchase price in a year or so only to add more debt at the end of the day. That’s how PE firms get their cash out. Happens all the time.
@@FPM811 when Apollo first made the offer it was cited this covered debt.