Paramount shares drop as on report that Sony and Apollo’s bid is ‘fading’

Shares of Paramount Global (PARA) fell more than 5% in Tuesday trading after CNBC, citing sources familiar with the matter, reported that Sony Pictures (NYSE:) is reconsidering its bid for the U.S. media company.

“People close to the situation that I’ve been speaking to of late indicate that the likelihood of a bid, at least for the full company, seems to be fading a bit,” said analysts at CNBC.

“That does not mean that there would not be some sort of bid potentially forthcoming.”

Last week, Reuters reported that Paramount was in talks to open its books to a consortium including Sony Pictures and Apollo Global Management, with a potential acquisition valued at $26 billion.

However, a special committee of Paramount’s board, which is reviewing the company’s options, allowed an exclusivity period with Skydance to lapse earlier this month.

Skydance had proposed a complex transaction, offering around $2 billion to acquire the Redstone family’s holding company, National Amusements, which controls 77% of Paramount’s class-A voting stock.

Paramount would then acquire Skydance in an all-stock transaction valued at approximately $5 billion. Skydance also offered a $3 billion deal sweetener, combining share buybacks and cash to help pay down debt.