Some people now doubt that the Paramount-Skydance merger will happen. The Shari Redstone-controlled entertainment company allegedly backed away from the deal.

Paramount-Skydance Merger Might Not Happen

According to The Hollywood Reporter's latest report, after weeks of M&A negotiations, the proposed merger between Paramount Global and Skydance seems to be failing.

People familiar with the matter said that Paramount's special board committee has allegedly cooled on the proposed Skydance deal. The Shari Redstone-led entertainment company's common shareholders strongly opposed Skydance's offer during the 30-day exclusive negotiating window with Paramount Global.

With the M&A negotiations set to expire at midnight on Friday, May. 3, as reported by Variety, the clock is ticking. Skydance's revised offer was an attempt to win over Paramount's shareholders, but with no extension expected, the potential failure of the Paramount-Skydance merger seems imminent.

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Paramount's Potential Merger

Aside from Skydance, some entertainment firms want to merge or acquire the company. Among the top ones are Sony Pictures and Apollo, which offer a $26 billion all-cash deal.

While Sony Pictures and Apollo present alternative merger options, uncertainty looms. Regulatory concerns, particularly Apollo's ownership of broadcast TV stations and Sony's status as a Japanese entertainment company could pose challenges, leaving Paramount's future in suspense.

READ MORE: Sony, Apollo Bid $26 Billion in Cash for Paramount Global