REFILE-UPDATE 1-Paramount will let exclusive talks with Skydance lapse, NYT reports

(Refiles to remove extraneous word in paragraph 1)

May 3 (Reuters) -

Paramount Global will end its exclusive negotiations with Skydance Media without reaching a deal, the New York Times reported on Friday, citing people familiar with the matter.

Shares of the media giant rose 3% in extended trading.

A special committee of Paramount's board, which was established to evaluate the media company's options, spent months negotiating with Skydance and its partners, Redbird Capital and KKR.

However,

some shareholders

were critical of the deal, and urged the board to conduct a more thorough review of the alternatives.

Sony Pictures Entertainment and private equity firm Apollo Global Management have sent a letter to the Paramount board, expressing interest in acquiring the company for $26 billion in an all-cash offer. (Reporting by Akash Sriram in Bengaluru and Dawn Chmielewski in Los Angeles; Editing by Anil D'Silva)