Shares of Paramount Global rose more than 10% on Friday, on news Sony Pictures Entertainment and Apollo Global Management were discussing a joint bid to acquire the media company.
Paramount is currently engaged in exclusive deal talks with Skydance Media, an independent studio led by David Ellison, though some investors have urged Paramount to explore other options.
Private equity firm Apollo had earlier made a $26 billion bid for the company, and a separate $11 billion offer for Paramount’s film studio.
Its joint bid with Sony, which is still being structured, would offer cash for all outstanding Paramount Global shares and take the company private, a source told Reuters on Thursday.
Sony would hold a majority stake in the joint venture and operate the media company, and its library of films, including blockbusters franchises like as “Star Trek,” “Mission: Impossible” and “Indiana Jones,” and television characters like SpongeBob SquarePants, according to the source.
Apollo would likely assume control of the CBS broadcast network and its local television stations.
Paramount shares are down nearly 7% since April 3 when Reuters reported that the company had began 30-day exclusive negotiations with Skydance.
The stock closed Friday at $12.44, up 13%, giving it a market cap of more than $8 billion. The company’s market capitalization fell below $10 billion in January.
Paramount Global has lost more than $16 billion in value since it was formed through the reunion of CBS and Viacom in 2019.
Its revenue declined nearly 2% last year, with the company still coming to terms with consumer shift away from traditional linear television to streaming services.
Its streaming unit Paramount+ has been unprofitable despite reporting subscriber growth over the recent quarters.
Paramount stock is down 16% year to date and more than two-thirds of the analysts have a “hold” or lower rating on it.
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