In a recent interview with CNBC, Apollo Global Management CEO, Marc Rowan, expressed confidence in the potential joint bid by Apollo and Sony Pictures Entertainment to acquire Paramount Global for $26 billion in cash. Despite potential regulatory concerns, Rowan shrugged off any obstacles, stating that "these paths are well trodden."

Sony Pictures Entertainment, a wholly owned subsidiary of Sony Group Corporation, already owns a studio, while Apollo holds a minority stake in Cox Media Group, which owns 12 local U.S. TV stations. The Federal Communications Commission (FCC) imposes a 25% investment cap on foreign ownership in U.S.-organized entities that hold direct or indirect control over U.S. broadcast, common carrier, or aeronautical radio stations. However, the FCC can grant exemptions for ownership up to 100% if it serves the public interest.

Rowan highlighted that there is no limit on the number of TV stations a single entity may own nationwide as long as the station group collectively reaches no more than 39% of all U.S. TV households.

When discussing Apollo's involvement in the Paramount bid, Rowan emphasized their interest in value creation and improving businesses, stating, "We're active in this space before, and partnering with a strategic [entity] just brings something else to the table."

Despite Apollo's primary role as a financing partner, Rowan stressed the firm's 35 years of experience in the media industry. He also acknowledged the ongoing transformation in the media industry, driven by competition from streaming platforms and technology companies, which makes a potential partnership between studios more conceivable.

Under the proposed terms, Sony would become the majority shareholder with operational control, while Apollo would hold a minority stake. However, an individual familiar with the matter clarified that the bid is non-binding, and the $26 billion valuation, including assumed debt, is only a starting point.

Rowan emphasized that the purchase price is a crucial consideration, highlighting their commitment to providing excess returns to investors while managing risk.

This joint bid from Sony and Apollo comes after Paramount's discussions with Skydance Media ended without a deal. However, the decision to open talks to other bidders allows companies that were previously on the sidelines to potentially make competing offers.

Additionally, there is a possibility that Paramount may not accept any bids and opt to continue independently under its new management structure after CEO Bob Bakish's resignation. The Paramount Office of the CEO, comprising executives from CBS, Paramount Media Networks, and Paramount Pictures, is currently developing a long-term strategic plan for the company.

Paramount has faced challenges recently, with its market capitalization at $9.2 billion. The company's shares fell 22% in the past year but have seen a 19% increase in the past month and a 4% increase over the past six months.

While regulatory concerns and competing offers remain potential hurdles, Marc Rowan's confidence underscores Apollo Global Management's determination to pursue the acquisition of Paramount Global alongside Sony Pictures Entertainment.