Paramount Board Backs Skydance Media Merger as David Ellison Closes in on MTV and CBS Owner: Report – Paramount Global (NASDAQ:PARA), Oracle (NYSE:ORCL)

Skydance Media is on the verge of being taken over Paramount Global Paragraph owner of MTV and CBS, after a special committee of the latter’s board approved the merger.

What happened:A special committee of Paramount’s board has given the green light to a merger with Skydance Media, led by David EllisonBloomberg reported Sunday, citing a person familiar with the matter. The full council is expected to ratify the deal Sunday, with an official announcement likely on Monday.

The deal, if completed, would mark the end of a tumultuous and complicated merger process. The deal includes the acquisition National pastimescontrolling shareholder of Paramount, by Ellison, and the subsequent merger of Skydance with Paramount. The move would have ended the Redstone family’s four-decade control of the media empire.

Ellison’s negotiations with Paramount and Redstone broke down just a few weeks ago, surprising the company’s board, employees and shareholders. But the son Oracle Corp ORL co-founder Larry Ellison has maintained contact with Redstone and resumed talks over the past few days.

The new terms of the agreement include a higher valuation for National Amusements and stronger provisions protecting Redstones from potential litigation arising from the agreement.

Skydance Media and Paramount Global did not immediately respond to Benzinga’s request for comment.

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Why is this important?: The potential acquisition comes after a series of ups and downs in the negotiation process. Talks between Paramount and Skydance broke down in June, but Ellison has reignited them in the past few days. The new terms of the deal include a higher valuation for National Amusements and stronger provisions protecting the Redstones from potential litigation arising from the deal.

The news of the potential takeover had a significant impact on the stock market. Paramount Global shares surged on reports of a tentative agreement to acquire National Amusements Inc. and merge with Paramount. The deal, which involves significant financial maneuvering, is intended to strengthen Paramount’s position in a competitive media landscape.

Reduction:Paramount Global Class B shares last closed at $11.81, up 3.05%. In after-hours trading, the stock is up 0.17%. Year-to-date, the stock is down 17.99%, according to Benzinga Pro data.

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This story was generated by Benzinga Neuro and edited by Kaustubh Bagalkote