(Reuters) – Sony (NYSE:) Pictures Entertainment and Apollo Global Management (NYSE:) have signed nondisclosure agreements that will allow them to review Paramount’s books ahead of a potential bid for the studio’s assets, the New York Times reported Friday, citing people familiar with the matter. cause.
However, the companies are abandoning their original plan to make a $26 billion cash offer to Paramount, the newspaper reported.
Reuters reported this month that Paramount was in talks to open its accounts to a consortium consisting of Sony’s film unit and a US buyout firm. CNBC later reported that Sony had rethought its offer, sending Paramount’s shares tumbling and helping the Japanese firm’s shares rise following upbeat reports.
Sony and Apollo are now considering various options to acquire Paramount’s assets, the New York Times reports.
Paramount declined to comment on the report, and Sony and Apollo did not immediately respond to requests for comment late Friday.
Like other studios, Paramount is struggling to recover from months of strikes by Hollywood writers and actors last year, a weak advertising market and falling cable subscriptions in the United States that have dented profits in its TV business.
Paramount was also in talks with Skydance Media, but the exclusivity period in the negotiations ended earlier this month.