Sony and Apollo submit $26 billion Paramount offer, WSJ reports

(Reuters) – Sony (NYSE:) Pictures Entertainment (SPE) and Apollo Global Management (NYSE:) have made a $26 billion cash offer for Paramount Global, the Wall Street Journal reported.

The two companies submitted the non-binding offer letter on Wednesday, signed by Sony Pictures Chief Executive Tony Vinciquerra and Apollo partner Aaron Sobel, said the WSJ, citing people familiar with the matter.

Reuters reported earlier in April that Sony’s SPE and Apollo were in talks to make a joint bid for Paramount.

SPE, Apollo and Paramount did not immediately respond to Reuters requests for comment.

Paramount is in exclusive talks with Skydance Media and is working to build its streaming business as it faces tough competition from Netflix (NASDAQ:) and Walt Disney (NYSE:) as viewership of cable TV declines.

SPE, a subsidiary of Tokyo-based Sony Group Corporation, says its operations span movie and television production, acquisition and distribution, digital content creation and distribution, studio facility operation and the development of new entertainment products, services and technologies.