Paramount Global (NASDAQ:PARA) shares surged premarket Wednesday as Skydance Media has reportedly reached a preliminary agreement to acquire National Amusements Inc. and merge with Paramount, the parent company of CBS and MTV.

Shari Redstone's National Amusements, the family firm controlling Paramount, will forward the deal to a special committee of Paramount directors for review, reported Bloomberg.

This deal, which involves significant financial maneuvering, aims to bolster Paramount's position in the competitive media landscape.

Th development follows the recent collapse of previous negotiations, with renewed talks gaining momentum over the past week. Skydance is led by Oracle Corporation (NYSE:ORCL) co-founder Larry Ellison's son David Ellison.

The new terms include a higher valuation for National Amusements and enhanced legal protections for Redstones' company.

Sellers have 45 days to explore better offers. If approved, the agreement could be finalized within days, though potential hurdles remain.

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As part of the proposed transaction that Ellison previously proposed, along with partners RedBird Capital Partners and KKR & Co Inc (NYSE:KKR), offered to purchase National Amusements for $2.25 billion and infuse $1.5 billion into Paramount to reduce its debt.

Ellison's group would contribute an additional $4.5 billion to acquire Paramount shares.

The investment represents a crucial support for Paramount, which has faced challenges as consumers shift from traditional media to streaming services.

Earlier Tuesday, Bloomberg reported that Paramount is in exclusive talks to sell its Black Entertainment Television network. The potential buyers include BET CEO Scott Mills and Chinh Chu of CC Capital, with an offer range of $1.6 billion to $1.7 billion.

Paramount stock has lost more than 34% in the last 12 months. Investors can gain exposure to the stock via Invesco S&P 500 Pure Value ETF (NYSE:RPV) and Invesco Leisure And Entertainment ETF (NYSE:PEJ).

Price Action: PARA shares are trading higher by 12.9% at $12.10 premarket at last check Wednesday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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