July 30 (Reuters) - Former Warner Music chairman Edgar

Bronfman Jr. is still in talks with bankers about a potential

bid for Paramount Global's ( PARAA ) parent, National Amusements,

Axios reported on Tuesday, citing sources.

David Ellison's Skydance Media had struck a deal earlier

this month to acquire Paramount, which included a 45-day "go

shop" window to find a better offer.

If Paramount receives another offer, which Skydance does not

match, it would pay a $400 million break-up fee.

Skydance and its deal partners would acquire National

Amusements for $2.4 billion in cash. Ellison's media firm would

subsequently merge with Paramount, offering $4.5 billion in cash

or stock to shareholders and providing an additional $1.5

billion for Paramount's balance sheet.

Bronfman was looking to offer between $2 billion and $2.5

billion for National Amusements, the private company that holds

the Redstone family's controlling interest in Paramount.

Paramount declined to comment on the Axios report. Bronfman

did not immediately respond to a Reuters request for comment.

CNBC reported last Friday that billionaire Barry Diller

signaled his digital-media conglomerate IAC was no

longer in the race to buy Paramount and that he would be

"shocked" if there was not a huge amount of litigation on the

planned merger.

The merger with Skydance Media was met with a court

challenge last week after Paramount's investor Scott Baker sued

to block the deal citing lower payout for shareholders.