Paramount Skydance Corp.

has discussed its

interest in acquiring
Warner Bros. Discovery Inc.

with

Apollo Global Management Inc

., according to people familiar with the matter.

Apollo could be an investor in a transaction, said the people, who asked not to be identified disclosing private discussions. The talks have also involved Legendary Entertainment, an i

ndependent film and TV producer

majority owned by Apollo.

Legendary is a partner in many of Warner Bros.’ top film franchises, including Dune, Godzilla and A Minecraft Movie. Paramount recently signed a multiyear deal to distribute some Legendary films in cinemas.

Paramount, the parent of CBS, MTV and its

namesake film studio

, was itself taken over in August through a merger with David Ellison’s Skydance Media. Now Paramount’s chief executive , Ellison sees an opportunity to make an offer for Warner Bros. before the latter spins off its

cable-TV networks

into a separate company next year.

The New York Post reported on the discussions between Paramount and Apollo earlier Wednesday.

Shares of Paramount were little changed at US$18.41 at 2:54 p.m in New York. Warner Bros. was down 3.1 per cent to US$18.02.

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The talks suggest that funding remains a hurdle, potentially delaying an offer, Bloomberg Intelligence said in a research note.

—With assistance from Thomas Buckley.

Bloomberg.com