Shares of Paramount Global (PARA) fell more than 5% in Tuesday trading after CNBC, citing people familiar with the situation, reported that Sony Pictures (NYSE:) is reconsidering its offer to buy the US media company.
“People close to the situation that I’ve spoken with lately note that the likelihood of an offer, at least for the entire company, appears to be diminishing slightly,” analysts told CNBC.
“That doesn’t mean there won’t potentially be some kind of proposal.”
Reuters reported last week that Paramount is in talks to open its accounts to a consortium including Sony Pictures and Apollo Global Management, with the potential acquisition valued at $26 billion.
However, a special committee of Paramount’s board of directors that is reviewing the company’s options allowed Skydance’s exclusivity period to expire earlier this month.
Skydance proposed a complex deal, offering about $2 billion to acquire the Redstone family’s holding company, National Amusements, which controls 77% of Paramount’s Class A voting shares.
Paramount would then acquire Skydance in an all-stock deal valued at approximately $5 billion. Skydance also offered a $3 billion sweetener deal, combining a share buyback and cash to pay off debt.