Sony’s finance head announced on Wednesday that the Japanese media and technology giant will not reconsider a new offer for film and television production company, Paramount Global.
Sony currently has no plans to submit a revised offer for Paramount, said Hiroki Totoki, the company’s chief financial officer, according to CNBC.
While responding to a question during Sony’s fiscal first-quarter earnings presentation, Totoki stressed that an acquisition of Paramount “does not fit well with our strategy.”
“If we have to acquire the whole of Paramount, it would be quite risky because it may not be well fitted to our capital allocation structure,” he added.
Totoki’s remarks corroborate Tuesday’s reports from the Japanese financial newspaper Nikkei, which stated that Sony had chosen not to submit a fresh bid for Paramount Global after the acquisition of the media giant by independent film company Skydance Media.
Paramount Global, one of Hollywood’s oldest studios and home to mega media franchises such as “SpongeBob SquarePants” and “The Godfather,” ended months of negotiations when it agreed to merge with Skydance.
In a two-phase deal, National Amusements, with an enterprise value of $2.4 billion, including $1.7 billion in stock, will be acquired by Skydance and partners, including RedBird Capital Partners and KKR, for more than $8 billion in capital.
It was earlier reported in May that Sony and private equity giant Apollo Global Management had expressed interest in acquiring Paramount for about $26 billion.
At the time, Skydance Media, a U.S. film production supported by RedBird Capital Partner and KKR in private equity, proposed an offer still being considered by Paramount.
Paramount’s deal with Skydance saw an end to the historic control of the powerful Redstone family over Paramount.
