Paramount Global (NASDAQ:PARA) shares are trading higher following reports that suggest Sony Group Corporation (NYSE:SONY) is in talks with Apollo Global Management, Inc. (NYSE:APO) to enter a bid for the company.

The companies haven't yet approached Paramount, which is currently in exclusive deal negotiations with Skydance Media, led by David Ellison, Reuters reported, citing a person familiar with the matter.

However, the report indicates that some investors advocate for Paramount to explore alternative options.

The rival offer, still in the process of being formulated, would propose cash for all outstanding Paramount shares, privatizing the company, the report added.

Apollo, a private equity firm, had previously tendered a $26 billion bid for the company and a distinct $11 billion proposal for Paramount's film studio.

The ongoing joint bid between Apollo and Sony aims to privatize Paramount Global by offering cash for all outstanding shares.

Sony Pictures would hold a majority stake and manage Paramount and its film library, while Apollo would to take over the CBS broadcast network and local television stations, the report added.

According to Benzinga Pro, PARA stock has lost over 51% in the past year. Investors can gain exposure to the stock via Invesco S&P 500 Equal Weight Communication Services ETF (NYSE:RSPC) and Invesco S&P 500 Pure Value ETF (NYSE:RPV).

Price Action: PARA shares were up 9.9% to $12.04 at last check Friday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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