(Reuters) -Former Warner Music chairman Edgar Bronfman Jr. is still in talks with bankers about a potential bid for Paramount Global's parent, National Amusements, Axios reported on Tuesday, citing sources.
David Ellison's Skydance Media had struck a deal earlier this month to acquire Paramount, which included a 45-day "go shop" window to find a better offer.
If Paramount receives another offer, which Skydance does not match, it would pay a $400 million break-up fee.
Skydance and its deal partners would acquire National Amusements for $2.4 billion in cash. Ellison's media firm would subsequently merge with Paramount, offering $4.5 billion in cash or stock to shareholders and providing an additional $1.5 billion for Paramount's balance sheet.
Bronfman was looking to offer between $2 billion and $2.5 billion for National Amusements, the private company that holds the Redstone family's controlling interest in Paramount.
Paramount declined to comment on the Axios report. A spokesperson for Bronfman told Reuters that he is currently considering his options.
CNBC reported last Friday that billionaire Barry Diller signaled his digital-media conglomerate IAC was no longer in the race to buy Paramount and that he would be "shocked" if there was not a huge amount of litigation on the planned merger.
The merger with Skydance Media was met with a court challenge last week after Paramount's investor Scott Baker sued to block the deal citing lower payout for shareholders.