Skydance Media is on the verge of acquiring Paramount Global ( PARAA ) the owner of MTV and CBS, after a special committee of the latter‘s board approved the merger.

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

The transaction, if finalized, would mark the end of a tumultuous and complex merger process. The deal includes the acquisition of National Amusements, the controlling shareholder of Paramount, by Ellison, followed by the merger of Skydance with Paramount. This move would bring an end to the Redstone family’s four-decade-long control of the media empire.

Ellison’s negotiations with Paramount and Redstone had collapsed just a few weeks ago, surprising the company’s board, employees, and shareholders. However, the son of Oracle Corp ( ORCL ) co-founder Larry Ellison maintained contact with Redstone and revived the talks over the past several days.

The new terms feature a higher valuation for National Amusements and stronger language indemnifying the Redstones’ company against potential litigation resulting from the deal.

Skydance Media and Paramount Global ( PARAA ) did not immediately respond to Benzinga's request for comment.

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Why It Matters: This potential acquisition comes after a series of ups and downs in the negotiation process. Talks between Paramount and Skydance collapsed in June, only to be revived by Ellison in the past few days. The new terms of the deal include a higher valuation for National Amusements and stronger language indemnifying the Redstones’ company against potential litigation resulting from the deal.

The news of the potential acquisition has had a significant impact on the stock market. Paramount Global’s stock surged following reports of the preliminary agreement to acquire National Amusements Inc. and merge with Paramount. This deal, involving substantial financial maneuvering, aims to strengthen Paramount’s position in the competitive media landscape.

Price Action: Paramount Global Class B shares last closed at $11.81, rising by 3.05%. In after-hours trading, the stock slightly increased 0.17%. Year to date, the stock has declined by 17.99%, according to data from Benzinga Pro.

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