Sony, Apollo plan to sell CBS, cable channels after buying Paramount – NYT

Sony (NYSE:SONY) and Apollo Group (NYSE:APO) plan to sell the Paramount Group’s (NASDAQ:PARA) CBS network as well as the entertainment giant’s cable channels, such as Nickelodeon and MTVm as part of their $26 billion offer for the company.

The new owners would also sell off the Paramount Plus streaming service, according to aNew York Times report late Wednesday, which cited people familiar with the matter.

Sony and Apollo are also expected to keep Paramount’s library of films and TV shows and the rights to well-known characters, according to the report. The companies haven’t outlined this plan to Paramount (PARA) or its advisers.

The update comes after Paramount Global’s (PARA) board on Saturday formally gave the go-ahead for negotiations to begin on a potential acquisition by Apollo and Sony, according to a NYT report at the time.

Under a Sony deal, the two would likely operate the company as a joint venture controlled by Sony, with a minority stake owned by Apollo, according to the latest NYT report. Sony plans to combine the marketing and distribution segments of the Paramount movie studio with its own operations, and divest the rest of the properties.

Sony and Apollo expectsthere could be many logical buyers for Paramount’s (PARA) assets, the NYT said. Warner Bros. Discovery (WBD) could be a possible suitor for CBS, while TV station groups like Nexstar (NXST) and Tegna (TGNA) would be natural buyers for CBS’s owned and operated TV stations.

Separately, Reuters reported late Wednesday that Paramount is in negotiations to open its books to Sony (SONY) and Apollo. Advisers are working out the terms of confidentiality agreements, people familiar with the matter told Reuters.