Investing.com - Skydance Media, led by David Ellison, son of Oracle (NYSE:ORCL) co-founder Larry Ellison, is reportedly close to finalizing a deal to acquire National Amusements, owned by Shari Redstone's family.
The proposed agreement also includes a merger with Paramount Global (NASDAQ:PARA), whose shares surged 9.8% after-hours.
The preliminary agreement comes after a previous round of negotiations fell through last month. The new deal, if approved, would see Skydance pay $1.75 billion for National Amusements. The companies have also agreed to a 45-day "go-shop period," during which other potential bidders for Paramount can submit their offers.
Unlike in the previous round of negotiations, National Amusements is no longer insisting that the Paramount merger must be approved by a majority of non-Redstone shareholders. However, the proposed terms of the merger must receive approval from a special committee of Paramount's board.
Skydance Media's pursuit of Paramount has been ongoing for several months, marked by a complex deal-making process that has seen intermittent progress.
Redstone's decision to call off discussions to sell her controlling stake in Paramount to Skydance last month had caught many in Hollywood off guard.
Paramount, which owns CBS, MTV, Nickelodeon, and its namesake film studio, has been grappling with a declining cable business, a significant debt burden, and the expensive expansion of its streaming service.
Amid these challenges, Paramount Global Class B (NASDAQ:PARA) shares closed at $10.72 on Tuesday, marking a nearly 26% decrease since the start of the year.