Sony, Apollo move forward with Paramount bid process but are reluctant about earlier plan, New York Times reports

(Reuters) – Sony Pictures Entertainment and Apollo Global Management have signed confidentiality agreements that will allow them to view Paramount’s books ahead of a potential bid for the movie studio’s assets, the New York Times reported on Friday, citing people close to the case.

The companies, however, are backing away from their original plan to make a $26 billion all-cash offer for Paramount, the newspaper said.

Reuters reported this month that Paramount was in talks to open its books to a consortium made up of Sony’s film division and the American buyout company. CNBC later reported that Sony was rethinking its offer, sending Paramount shares tumbling and helping the Japanese company’s shares climb after upbeat earnings.

Sony and Apollo are now considering various approaches to acquiring Paramount’s assets, the New York Times reported.

Paramount declined to comment on the report, while Sony and Apollo did not immediately respond to a request for comment Friday evening.

Like other studios, Paramount is struggling to recover from last year’s months-long strikes by Hollywood writers and actors, a sluggish advertising market and a decline in U.S. cable subscriptions that eroded the profits of its TV business.

Paramount has also been in talks with Skydance Media, but earlier this month ended a period of exclusivity in negotiations.

(Reporting by Mrinmay Dey in Bangalore; editing by Edwina Gibbs)