PARAMOUNT Global has entered exclusive talks with Skydance on a potential merger instead of a proposed US$26 billion takeover offer from Apollo, US media reported on Wednesday (Apr 3) night.

The negotiations mean entertainment giant Paramount will not speak with Apollo or other prospective acquirers for 30 days, while it aims for a transaction to be bought by Skydance, according to The Wall Street Journal, which cited unnamed sources.

Shares of Paramount, which owns television networks CBS and MTV and whose chair is Shari Redstone, surged 15 per cent on Wednesday.

Paramount declined comment while Skydance did not immediately respond to a request from AFP.

Investment giant Apollo Global Management told Paramount that it would offer more than US$26 billion for Paramount, including debt, but Paramount chose not to engage because of the Skydance talks, The New York Times reported.

Paramount’s studio division has long been eyed for purchase, with streaming television titan Netflix among the companies that have expressed interest in the operation.

GET BT IN YOUR INBOX DAILY

Start and end each day with the latest news stories and analyses delivered straight to your inbox.

Sign UpVIEW ALL

Paramount and Skydance jointly produced Top Gun: Maverick, the Tom Cruise blockbuster.

Formerly known as ViacomCBS, Paramount Global’s holdings also include Nickelodeon and Comedy Central.

Privately held Skydance Media is led by David Ellison, the son of billionaire Oracle co-founder Larry Ellison. AFP