July 7 (Reuters) - Paramount Global's ( PARAA ) 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.