July 7 (Reuters) - Tech scion David Ellison moved one
step closer to gaining control of Paramount Global ( PARAA ),
with a special committee voting Sunday to support a merger with
his Skydance Media, a source close to the deal told Reuters.
The proposed deal would require approval of Paramount's full
board, including its non-executive chair, Shari Redstone, who
last week reached a preliminary agreement to sell the family's
controlling stake in Paramount to Ellison and his deal partners.
A final agreement could be announced as soon as Monday.
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.
Behind the scenes, Ellison reached out to Redstone about a
week later and talks quietly resumed, according to two people
familiar with the negotiations.
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, the source said.