Sony has decided not to pursue another bid for Paramount, stating that acquiring the company would not align with their strategic goals.

In an article discussing recent developments in the media industry, it was reported that Sony’s Chief Financial Officer, Hiroki Totoki, announced on Wednesday that the company has no intention of making a new bid for Paramount Global. This decision aligns with Sony’s strategic goals, as Totoki explained during the company’s first-quarter earnings presentation. He emphasized that acquiring Paramount would pose significant risks and would not align well with Sony’s capital allocation strategy.

This confirmation follows a report from the Japanese financial newspaper Nikkei, which indicated that Sony had opted out of pursuing Paramount Global after Skydance Media, an independent film studio, reached an agreement to acquire the media giant. Paramount Global, known for iconic franchises like “SpongeBob SquarePants” and “The Godfather,” concluded its negotiations by agreeing to merge with Skydance.

The merger involves a two-step process where Skydance, along with partners RedBird Capital Partners and KKR, will invest over $8 billion into Paramount and acquire National Amusements, valued at $2.4 billion, including $1.7 billion in equity. Previously, Sony and Apollo Global Management had shown interest in purchasing Paramount for approximately $26 billion, with CNBC first reporting these discussions in May.

At that time, Paramount was also considering an offer from Skydance Media, supported by RedBird Capital Partners and KKR. Later in May, CNBC’s David Faber reported that Sony was reconsidering its bid for Paramount, coinciding with a 7% decline in Sony’s fiscal 2023 profit due to weaknesses in its financial services division.

The deal with Skydance marks the end of the Redstone family’s historic control over Paramount. The Redstones have been the primary shareholders since Sumner Redstone acquired the company in 1994, with his daughter Shari Redstone taking over leadership after his death in 2020.