Warner Bros. Discovery has halted discussions regarding a potential acquisition of Paramount Global, marking a pause after months of exploring the merger of the two media companies, according to sources familiar with the matter.

Skydance Media, led by David Ellison, is currently conducting due diligence for a potential transaction, as reported by two anonymous insiders, given the private nature of deal talks.

Paramount Global has established a special committee that enlisted its own financial advisor to assess bids for the entire company or specific assets.

Last month, media mogul Byron Allen proposed a $14 billion offer for the company, although his history includes bidding on, but not acquiring, large media assets.

Comcast, the owner of CNBC parent NBCUniversal, has indicated no interest in acquiring Paramount Global assets, according to one source, CNBC reported.

However, Comcast has been collaborating with in-house bankers to explore potential commercial partnerships with Paramount Global.

This could involve bundling or merging streaming services Peacock and Paramount+, as previously reported by The Wall Street Journal, or exploring alternative arrangements.

Paramount Global’s interest in such proposals remains uncertain as it explores various sale scenarios.

Representatives for Comcast, Paramount Global, Skydance Media, and Warner Bros. Discovery have declined to provide comments.

Written by B.C. Begley