Sony is reportedly having second thoughts about its $26 billion bid to acquire Paramount Global.
According to CNBC’s Power Lunch, the possibility that Sony and private equity firm Apollo Global Management will bid for the full company “seems to be fading a bit”.
“That does not mean that there would not be some sort of bid potentially forthcoming, but will it be restructured?” posed CNBC’s David Faber.
Sony and Apollo have not yet signed a nondisclosure agreement with Paramount, which would enable them to begin due diligence.
The two potential bidders are said to have been put off by the fact that Sony’s share price dropped last week after speculation grew that they were preparing to bid for Paramount.
Instead, Faber suggested Sony and Apollo may decide to acquire Shari Redstone’s National Amusements, which is the controlling shareholder of Paramount Global.
