Paramount Global ( PARAA ) , which turned down a $26 billion bid from Apollo Global Management, Inc. ( APO ) , is now in exclusive discussions with Skydance, the studio behind Top Gun: Maverick.

David Ellison, leading Skydance, has a 30-day window to negotiate a deal with the entity overseen by Shari Redstone’s National Amusements (NAI), a privately held cinema group owning 77% of Paramount’s voting shares, Financial Times reported.

According to Benzinga Pro, PARA stock has lost over 35% in the past year. Investors can gain exposure to the stock via Invesco S&P 500 Equal Weight Communication Services ETF and Invesco S&P 500 Pure Value ETF ( RPV ) . 

The proposed arrangement entails Skydance initially acquiring NAI, followed by a subsequent merger with Paramount, the report read, citing people who briefed about the matter.

Ellison and Redstone, both from prominent American families, have been in negotiations for months to finalize a merger between Paramount and Skydance.

The choice to engage in exclusive discussions underscores the mutual intent of both parties to conclude negotiations, the report added. 

This follows Paramount’s board rejecting Apollo’s bid to acquire 100% of the media group’s shareholders at a valuation ranging between $17 and $19.50 per share.

Apollo’s $26 billion takeover bid encompassed debt as part of its valuation, the report added.

Price Action: PARA shares are trading lower by 1.92% to $13.26 premarket on the last check Thursday. 

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