By Sabela Ojea


Shares of Paramount Global on Tuesday fell after CNBC reported that Sony is rethinking its bid for the company, the latest twist in the TV and movie producer's merger drama.

Paramount shares slid as low as $11.89 and were recently down 5.1% to $12.35. Sony shares were up 6.5% to $81.31.

The likelihood of the Japanese entertainment and electronics company making a bid for all of Paramount is fading, CNBC reports, citing people familiar with the matter. That doesn't leave off the table some sort of bid potentially forthcoming, but it might be restructured, CNBC reported.

Sony hasn't signed a nondisclosure agreement at this point, the kind of agreement a company would typically sign to begin real due diligence, CNBC reported.

The Wall Street Journal on May 2 reported that Sony Pictures and private-equity firm Apollo Global Management had submitted an all-cash $26 billion offer for Paramount Global.

Apollo and Sony submitted the offer letter a day earlier, which was signed by Sony Pictures Chief Executive Tony Vinciquerra and Aaron Sobel, a partner at Apollo, The Wall Street Journal reported, citing people familiar with the situation. The offer was a starting point for discussions and is nonbinding, The Wall Street Journal reported.

Paramount has been the subject of merger interest, entertaining a bid from Skydance Media, a production company led by David Ellison. Paramount shareholders protested the Skydance offer, which they said gave controlling shareholder Shari Redstone a sweetheart deal for her stake in National Amusements, and the deal fell through.

On May 4, Berkshire Hathaway Chief Executive Warren Buffett said his firm sold its entire stake in Paramount, losing "quite a bit of money." Berkshire had been one of the largest Paramount shareholders at year-end 2023 with a stake of 63 million shares, or close to 10%.


Write to Sabela Ojea at sabela.ojea@wsj.com; @sabelaojeaguix


(END) Dow Jones Newswires

05-14-24 1613ET