Apollo reportedly interested in buying parts of Paramount Global

Apollo Global Management — a hedge fund — is reportedly interested in taking over Paramount Global, which includes CBS.

Paramount has reportedly been having talks, at various levels, with companies who might want to buy the company.

Some of the names who have reportedly taken meetings include Warner Bros. Discovery, a group led by Skydance Media and Allen Media Group (though the latter has been known to make offers for companies without a clear path to finance them).

Apollo is reportedly looking to strike a deal with Paramount instead of its parent National Amusements Inc. Skydance, along with KKR and RedBird Capital Partners are said to be considering an all-cash bid for the NAI. 

No formal offer has been put forward and it’s not clear if any of the interested parties will ultimately move forward.

Apollo is already in the TV business — it already controls Cox Media Group and has been part of other media acquisitions in the past. 

That could spell bad news for CBS. Like many hedge funds, Apollo is known for focusing on the bottom line and has largely taken one of the most respectful TV station ownership groups in the U.S. and stripped it down to a shell of itself. 

Hedge like like Apollo often end up having to run companies they acquire efficiently in order to deliver a return on investment for its shareholders and investors, but this often causes the end-product, in this case local news, to suffer. 

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On the other hand, Apollo could also provide a fresh influx of cash that Paramount needs to pay down debt and continue to invest in its brands, though it’s not clear how much cash, if any, would end up truly working its way down through the ranks into local newsrooms, for example. Much of it could be tied up on debt service and other higher-level corporate investments.

It’s also possible Apollo could seek a partner in any attempt to buy Paramount. It could also end up splitting Paramount’s assets as part of a purchase agreement or selling off pieces later. 

Assuming Apollo moves forward with a deal, it could be faced with regulatory concerns. It previously tried to acquire Tegna stations but that deal was ultimately blocked.