Rumor: Sony is planning to acquire Paramount

Sony is planning to form a joint bid with investment firm Apollo Global Management to acquire Paramount, according to a report in the New York Times.

Sony and Apollo Global Management have not submitted a formal offer, but Sony CEO Tony Vinciquerra spoke with the investment firm last week, the report said. The specific terms of the acquisition are apparently still being worked out, but it will essentially be a cash purchase of Paramount's shares, "effectively taking the company private through a joint venture."

The report added that if the acquisition is successful, Sony may absorb Paramount's business and incorporate it into its own media empire as a label. In addition to Paramount Pictures, Paramount also includes Nickelodeon, Showtime, MTV, Comedy Central and perhaps most notably CBS and the Paramount+ streaming service. Paramount owns IPs such as SpongeBob SquarePants, Top Gun, Yellowstone and the Sonic series.

Bloomberg also reported the news, noting that Sony is the only major entertainment company without a universal streaming service. With that in mind, it's easy to see why Paramount and its vast network of TV channels would be so attractive to Sony.

The Bloomberg report came shortly after Paramount's holding company National Amusements approved a deal to merge Paramount with Skydance Media, the studio behind films such as "Top Gun: Maverick," "Mission: Impossible - Deadly Reckoning" and "Transformers: Rise of the Beasts."

Late last year, reports surfaced that Warner Bros. executives had also met with Paramount Pictures to discuss a possible merger. However, we haven't heard much more about those talks since then.

Paramount's stock price surged 12% in after-hours trading today following the news.