Sony Group’s shares slid the most in almost three months after its proposal to buy Paramount Global raised financing concerns.

The stock dropped by as much as 4.2% in Tokyo.

The Japanese electronics company and Apollo Global Management made a $26 billion proposal to buy Paramount, which is weighing the offer, people with knowledge of the matter have said.

"While it’s a joint offer, investors are worried about Sony’s finances” given the deal size is larger than Sony’s cash holdings, said Yugo Tsuboi, chief strategist at Daiwa Securities. Once there’s more clarity on how the deal will be financed, investors will begin to look at the benefits, he said.

Sony holds about ¥1.5 trillion ($9.7 billion) in cash and cash equivalents, according to data compiled by Bloomberg. The Tokyo-based company is considering acquiring a majority stake in the new venture, with Apollo as an investor, the people have said.

Sony’s shares have dropped by more than 5% this year, compared with a 16% gain in the Topix index, amid a global electronics slump. The company in February cut its projections for sales of its PlayStation 5 gaming console.

"Besides the impact of the acquisition on its cash position and debt, questions have risen regarding the CBS channel that comes with Paramount, which foreigners can’t own, and given the political climate it seems that the deal will face major scrutiny,” said Amir Anvarzadeh, a Singapore-based strategist at Asymmetric Advisors. "Unless they find a buyer for CBS the deal is unlikely to go through.”