Paramount Global has begun deal talks with a bidding group representing Sony and private-equity firm Apollo after the companies made a joint overture to acquire the entertainment giant for $26 billion, according to the The New York Times. Three people familiar with the matter told the newspaper on Sunday that a special committee of Paramount’s board of directors met on Saturday and signed off on the start of negotiations, which comes after an exclusive negotiating window between Paramount and Skydance Media lapsed on Friday night. The potential merger with Skydance, favored by controlling shareholder Shari Redstone, faced challenges from other shareholders, who said it favored her and Paramount parent company National Amusements too heavily. Another reported critic of the Skydance deal was Bob Bakish, the longtime chief executive of Paramount who was unceremoniously removed from his position by the board earlier this week. It was not immediately clear whether National Amusements, presided over by Redstone, would sign off on a Sony-Apollo buyout.
