Shareholders Matrix Asset Advisors called the Skydance deal “suboptimal” on Monday, saying it would disproportionately benefit the Redstone family. Matrix also urged the board to reconsider a more straightforward bid from private equity firm Apollo Global Management, which was recently rejected.

The Apollo deal offered cash to acquire all of Paramount Global for $US26 billion, according to Reuters. This followed an initial offer of $US11 billion from Apollo to purchase just the film studio.

When the exclusive negotiating period was announced, Paramount’s share price rose 15 per cent, but it has since soured, dropping back 24 per cent.

Meanwhile, another potential suitor, HBO-owner Warner Bros Discovery, freed itself up this week. It had been in the middle of a two-year period of restrictions on merger and acquisition activity after its recent merging of Discovery and WarnerMedia in 2022.

Warner Bros chief executive David Zaslav and Paramount boss Bob Bakish already held merger discussions this year before talks went cold. Should a deal be reconsidered, it would have the potential to supercharge the assets of both, bringing together highly sought after HBO content alongside Paramount’s vast back catalogue.

It could also turn the tide in Paramount’s favour locally, with HBO content set to exit Foxtel traditional services and Binge next year with the launch of Max, as well as breathing life into Paramount’s ability to compete for sports content locally.

The company is still adjusting to recent changes, including a reorganisation of reporting lines globally. One of its two Australian bosses, Jarrod Villani, left this year, with company veteran Beverley McGarvey staying on as sole lead.

Paramount announced a significant round of layoffs in February. At the time, global chief Bakish said it would focus “more heavily on our Hollywood franchises, films and series, which have mass global appeal.”

Chief executive of aggregation platform Fetch Scott Lorson said Paramount was likely to secure a deal, but plenty of drama had yet to play out.

“Shareholder disputes, competing offers, and regulatory considerations all have the potential to influence the ultimate outcome,” he said.

While Lorson said it was too early to speculate on what a deal would mean for Network 10, a positive outcome may be on the cards.

“Many scenarios remain in play, several of which could result in a reinvigorated and scaled local player,” he said.

The Business Briefing newsletter delivers major stories, exclusive coverage and expert opinion. Sign up to get it every weekday morning.