In a move that sent shockwaves through the entertainment industry, private equity firm Apollo Global Management has reportedly tabled an eye-watering $11 billion offer for Paramount Global's coveted film studio, Paramount Pictures (NASDAQ:PARA). This bid, shrouded in intrigue and speculation, adds another layer of complexity to the ongoing saga surrounding the media conglomerate's future.
Market Reaction and Speculation Paramount's shares surged by a staggering 11.8% following the revelation, underscoring the market's keen interest in the potential acquisition. Apollo's approach comes amid a flurry of takeover interest in Paramount, with reports suggesting that the private equity giant had engaged with a special committee formed by the media conglomerate to explore various strategic options, including a possible takeover or asset purchases.
Uncertainty and Industry Dynamics However, Paramount Global (NASDAQ:PARA) remains tight-lipped about the developments, declining to comment on the matter, while Apollo Global Management could not be immediately reached for clarification. The silence from both parties only serves to fuel speculation further, as industry observers eagerly await further developments in this unfolding drama.
What will happen to current share holders if private company buys them?
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@e2daD, When a private company buys a public one, current shareholders may sell their shares for a price offered by the buyer, usually in cash or stock. If the buyer gets more than 50% of shares, they control the company's decisions. Those who keep their shares become minority shareholders, with less say in the company. In some cases, if the buyer gets enough shares, they can force remaining shareholders to sell.