By Kosaku Narioka

Sony Group shares rose sharply after quarterly net profit beat analysts' expectations and concerns eased about its bid for media and entertainment company Paramount Global.

Shares were recently 10% higher at 13,200 yen after rising as much as 12% earlier.

Sony said Tuesday after market close that net profit climbed 34% from a year earlier to Y189.005 billion ($1.21 billion) for the three months ended March, driven by stronger earnings from its game and movie businesses. That exceeded the estimate of Y149.71 billion in a poll of analysts by data provider FactSet.

Operating profit for its game business more than doubled from a year earlier, and that of its movie business nearly doubled.

Meanwhile, CNBC reported overnight that Sony is rethinking its bid for Paramount. The likelihood of the Japanese company making a bid for all of Paramount is fading, the CNBC report said, but added that it doesn't leave off the table some sort of bid potentially forthcoming.

The film unit of Sony and private-equity firm Apollo Global Management had submitted an all-cash $26 billion offer for Paramount, The Wall Street Journal reported earlier this month. Sony shares fell following the news due to market concerns about the size of the potential acquisition and doubts about potential synergy.

Sony also said Tuesday that it would buy back up to Y250.0 billion of its shares over the next year and conduct a five-for-one stock split, effective Oct. 1.

Write to Kosaku Narioka at

(END) Dow Jones Newswires

05-14-24 2200ET