Billionaire media mogul Barry Diller, known for his past tenure at Paramount Pictures, is reportedly considering a bid to take control of Paramount Global, according to sources familiar with the matter. Diller's company, IAC, has signed nondisclosure agreements with National Amusements, the holding company of Paramount's controlling shareholder Shari Redstone.

This potential bid comes after Redstone scrapped a deal with Skydance Media last month to acquire National Amusements and merge with the Hollywood studio. While economic terms had been agreed upon, unresolved issues, particularly regarding giving all shareholders a consent vote on the sale, caused the deal to fall through.

Representatives for National Amusements, Paramount, and IAC have declined to comment on the matter. Diller himself is said to be unavailable for comment, as he is currently on a yacht in Europe.

Diller's interest in Paramount is significant due to his historical association with the studio. He previously served as chairman and CEO of Paramount Pictures from 1974 to 1984 and was instrumental in creating Fox Broadcasting Company during his tenure at Fox Inc. His bid for Paramount Communications in the early '90s ultimately fell through, with Diller famously stating, "They won. We lost. Next."

Shari Redstone, Sumner Redstone's daughter and Paramount's controlling shareholder, has been pushing to keep the studio largely intact rather than selling it off in parts, as some Wall Street analysts have speculated. Diller's involvement could be the missing link in Redstone's efforts to preserve the company.

Diller, who founded IAC in 1995, is the chairman and senior executive of the internet and media conglomerate. IAC owns various brands across the globe, including Tinder, Dotdash Meredith, and Care.com. Diller's net worth is estimated at $4.1 billion, according to Forbes.

Paramount has been a subject of interest since last year, with various parties submitting bids for the troubled studio. Besides Skydance and an alliance between Sony Pictures Entertainment and Apollo Global Management, Allen Media Group founder Byron Allen and Warner Bros. Discovery CEO David Zaslav have also shown interest.

Currently, Paramount is being led by three co-CEOs -Brian Robbins, Chris McCarthy, and George Cheeks- as former CEO Bob Bakish stepped down in April. The trio has outlined a long-term strategic plan that includes $500 million in cost cuts, asset divestment, and potential partnerships or joint ventures with other streaming platforms.

Paramount recently revealed that it has started implementing cost-cutting measures, including in legal and corporate marketing, though details regarding the impact on employees remain undisclosed. The company has also brought in bankers to assist with asset sales, which may include Pluto TV, BET, VH1, and the Paramount studio lot.

With a market capitalization of $6.97 billion, Paramount's stock climbed over 3% in after-hours trading upon news of Diller's interest. However, the company has faced significant challenges, including a 29% decline in its stock value over the past six months and a credit rating downgrade to junk status. Paramount also carries a hefty long-term debt of $14.6 billion.

Paramount's co-CEOs are expected to provide updates on the long-term strategic plan during the second quarter earnings call, as the studio navigates its financial and operational challenges.