Paramount $PARA Global stock was down almost 9% in afternoon trading Thursday, following a report indicating that a potential merger with entertainment company Skydance Media would mean raising billions in new cash.
Discussions toward a deal come shortly after Apollo Global Management said it was interested in acquiring Paramount for $26 billion
Paramount $PARA Global stock was down almost 9% in afternoon trading Thursday, following a report indicating that a potential merger with entertainment company Skydance Media would mean raising billions in new cash.
Bloomberg, citing unnamed sources, reports that the companies are in exclusive talks about a potential merger. Deliberations toward a deal also come as Shari Redstone, Paramount’s leading shareholder, leads private discussions with Skydance founder David Ellison.
But CNBC reports that even with deal, Paramount would need to raise about $3 billion in new funding. It remains to be seen if a deal will go through.
Discussions toward a deal come shortly after investment firm Apollo Global Management said it was interested in acquiring Paramount for $26 billion, the Wall Street Journal reports. While Paramount has so far rebuffed that entreaty, Redstone appears to be interested in selling. The media tycoon has held discussions with Warner Bros. Discovery, Bloomberg reports. Companies such as Comcast $CMCSA have also considered buying.
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