(Reuters) – Sony (NYSE:) Pictures Entertainment and Apollo Global Management (NYSE:) have signed nondisclosure agreements allowing them to look at Paramount's books ahead of a potential bid to buy the movie studio's assets, the New York Times reported Friday, citing people familiar with the material.
The newspaper said that the companies are backing away from an initial plan to submit a cash offer worth $26 billion to buy Paramount.
Reuters reported this month that Paramount was in talks to open its books to a consortium that includes Sony's film unit and the American acquisition company. CNBC later reported that Sony was rethinking its offer, which sent Paramount shares tumbling and helped the Japanese company's shares rise after upbeat earnings.
The New York Times said that Sony and Apollo are now considering a variety of methods to acquire Paramount assets.
Paramount declined to comment on the report, while Sony and Apollo did not immediately respond to a request for comment late Friday.
Like other studios, Paramount has been struggling to recover from months of strikes by Hollywood writers and actors last year, and from a weak advertising market and declining cable subscriptions in the United States, which eroded the profits of its television business.
Paramount also held talks with Skydance Media but earlier this month ended a period of exclusivity in negotiations.