Since my previous piece, the Sony/Apollo discussions with Paramount regarding a possible takeover have wobbled slightly but still progress. Here’s the latest public domain news:
Shares fall on Sony rethink
The first drama (via Reuters) was Paramount shares fall after CNBC reports Sony rethinking its bid. It seems interest in buying the whole group had diminished, sending share prices down. I wondered if this were a tactic, but a later Reuters piece quotes the NY Times as confirming a cooling of interest in the whole deal on Sony’s part, but talks continue.
My thoughts
A classic post-takeover strategy is to break a company up to recoup investment (a form of asset stripping). If Sony / Apollo are instead only looking to buy a portion of the company, what does that mean for the rest? Its value will surely plummet, and who will want it? Will the residual Paramount organisation run it alone or will there more many more months of uncertainty for those involved (and employed). At this point delay and despair seems likely.
More updates as they come.
Symmetry Junction 