Paramount Global (NasdaqGS:PARA) is in talks about opening its books to a consortium of Sony Pictures Entertainment Inc. and buyout firm Apollo Global Management, Inc. (NYSE:APO) interested in acquiring the US media company, people familiar with the matter said on May 09 2024. Advisers to both sides are discussing the terms of a confidentiality pact that allows the exchange of commercially sensitive information, the sources said. Doing so would pave the way for Apollo and Sony to firm up their $26 billion offer and challenge a rival bid from David Ellison's Skydance Media.

A special committee of Paramount's board that is evaluating the company's options allowed an exclusivity period to lapse in its deal discussions with Skydance last week. The sources requested anonymity because the matter is confidential and cautioned there was no guarantee the talks would lead to a deal. A spokesman for Paramount's special committee declined to comment.

Sony Pictures Chairman Tony Vinciquerra first approached Paramount's controlling shareholder, Shari Redstone, years ago to explore acquiring the Paramount Pictures film studio, according to two sources familiar with the talks. At the time, Redstone was not interested in breaking up the company, one of the sources said. Since then, Sony has been expanding its entertainment business, which spans film, music and television production, as well as distribution and publishing.