Sony and Apollo are moving forward with Paramount’s bidding process, but are cautious about previous plans, NYT reports

(Reuters) – Sony Pictures Entertainment and Apollo Global Management have signed non-disclosure agreements allowing them to review Paramount’s books ahead of a possible bid for the film studio’s assets, the New York Times reported on Friday, citing people familiar with the matter. are on the case.

However, the companies are backing away from an initial plan to make an all-cash offer of $26 billion for Paramount, the newspaper said.

Reuters reported this month that Paramount was in talks to open its books to a consortium of Sony’s film division and the US takeover company. CNBC later reported that Sony was reconsidering its offer, causing Paramount’s shares to plummet and the Japanese company’s shares to soar after positive earnings results.

Sony and Apollo are now considering different ways to acquire Paramount’s assets, according to the New York Times.

Paramount declined to comment on the report, while Sony and Apollo did not immediately respond to a request for comment late Friday.

Like other studios, Paramount has struggled to recover from months-long strikes by Hollywood writers and actors last year, a weak advertising market and declining cable subscriptions in the United States, which eroded profits for its TV business.

Paramount has also been in talks with Skydance Media, but ended a period of exclusivity in negotiations earlier this month.

(Reporting by Mrinmay Dey in Bengaluru; Editing by Edwina Gibbs)