Paramount Global board approves plan to merge with Skydance Media, source says

Paramount Global’s board of directors Sunday approved a merger with Skydance Media, endorsing a deal that would combine one of Hollywood’s oldest studios with the up-and-coming production company, a source close to the deal told Reuters.

A final agreement could be announced as soon as Sunday night.

The vote comes on the heels of a preliminary agreement reached last week to sell National Amusements, which holds a controlling stake in Paramount, to Ellison and his deal partners.

The proposed merger would combine Paramount, with its namesake film studio and its CBS, MTV and Nickelodeon television networks, with its financial partner on several major film releases, including “Top Gun: Maverick”, “Mission: Impossible -Dead Reckoning” and “Star Trek Into Darkness”.

The deal comes weeks after Redstone abruptly called off negotiations with Skydance on June 11.

Skydance sweetened its offer for the family’s holding company, National Amusements, which controls 77% of Paramount’s voting shares. The new offer would net the Redstone family $1.75 billion, said one of the sources. It also enhanced legal protections from possible shareholder lawsuits, clearing the way for a new agreement, the source said.

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