In a recent development, Apollo Global Management, the private equity company co-founded by Marc Rowan, Josh Harris, and Leon Black, is reported to be reconsidering its offer for National Amusements, the Redstone family company that controls Paramount Global. Sources familiar with the matter have revealed that Apollo has become hesitant due to regulatory concerns, specifically in light of the Federal Communications Commission (FCC) rejecting hedge fund Standard General's $8.6 billion bid for the Tegna station group.

Although the situation is still subject to change, representatives from Apollo Global Management, Paramount Global, and National Amusements have declined to comment on the matter. It is worth noting that Apollo Global Management was set to provide funding for Standard General's unsuccessful bid. As a result, Apollo may be cautious about potential regulatory hurdles and the difficulty of obtaining FCC approval.

Sources have suggested that the FCC is wary of hedge fund operators being involved with local TV stations, likely due to the perceived negative impact on the newspaper industry. Consequently, the approval process has become a significant consideration for potential buyers interested in Paramount Global or National Amusements.

Apollo Global Management, which also serves as an investor in Legendary Entertainment, is not facing capital constraints but is primarily concerned about the regulatory aspect of the deal. This viewpoint aligns with the perspective of industry insiders who assert that gaining FCC approval is a significant challenge for most parties involved.

In January, it was reported by Bloomberg that Apollo reached out to BDT & MSD Partners, the investment bank advising the Redstones. However, with their current reservations, Apollo's involvement in the acquisition process seems uncertain.

Meanwhile, other players remain actively interested in acquiring Paramount Global. David Ellison, looking to merge his Skydance Media with Paramount, has secured backing from his father and billionaire Oracle co-founder, Larry Ellison, as well as RedBird Capital. Another contender is Byron Allen, who recently made a public offer of $30 billion for Paramount Global, intending to retain the broadcast assets and linear networks while potentially divesting the Paramount film studio and real estate.

Currently, the Redstone family, led by Shari Redstone, holds the controlling stake of 77% in Paramount, the parent company of CBS, MTV, and other media properties. In response to Allen's bid, a special board committee was formed to review potential offers, ensuring thorough scrutiny. Shari Redstone, although the non-executive chair of the company and head of controlling shareholder National Amusements, is not a member of the committee.

Notably, Paramount has a dual-class ownership structure, with the Redstone family trust, National Amusements, controlling nearly 80% of the Class A voting stock. Any buyer interested in acquiring Paramount would have to consider acquiring both the NAI stake and publicly-traded Paramount shares, potentially leading to conflicts with minority shareholders, including prominent investor Warren Buffett, who owns approximately 15% of the company.

With Apollo Global Management's uncertain stance and regulatory concerns looming large, the future of Paramount Global and National Amusements remains an intriguing and rapidly evolving situation.