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Paramount Global, under pressure from Barington Capital, is considering abandoning exclusive negotiations with Skydance Media and instead evaluating a $4 billion-$5 billion acquisition. Barington suggested considering Apollo Global Management's $26 billion acquisition as simpler and clearer.

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Paramount Global is under pressure from shareholders to abandon exclusive negotiations with Skydance Media, and Barington Capital suggests considering other acquisition options.

Hedge fund Barington Capital recently called on PARA (Paramount Global)Jilino1xyzUs) abandoned exclusive negotiations with film and television production company Skydance Media, believing that the move would benefit all shareholders.

Barington Capital owns Paramount Global 32Jilino1xyz.50,000 shares are increasingly dissatisfied with the company's business strategy. Investors are concerned that Paramount Global could suffer in a deal that favors Shari Redstone, the controlling shareholder.

James Mitarotonda, a portfolio manager at Barington Capital, said in a letter to Paramount Global's board that they opposed an exclusive agreement between the special committee and Skydance Media or either party. In his view, the Special Committee did not negotiate with other potential buyers to restrictJilino1xyzThe possibility of due diligence hinders the transaction process.

Paramount Global is understood to have entered a 30-day exclusive negotiation period with Skydance Media, and a special committee of the board is evaluating the possibility of buying Skydance Media for $4 billion to $5 billion in shares.

National Amusements, owned by Shari Redstone, is in exclusive talks with Skydance Media, and National Amusements is expected to receive more than $2 billion in cash in the acquisition under the terms of the deal discussed. Paramount Global is expected to buy Skydance Media in an all-stock deal worth about $5 billion after the acquisition.

Barington Capital urged Paramount Global to consider an offer from private equity giant Apollo Global Management (APO.US), which intends to buy Paramount Global for more than $26 billion, including debt. Barington Capital believes that given the risks of a potential deal with Skydance Media, the offer managed by Apollo Global is simpler, clearer and fully adds value.

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