Paramount Global (NASDAQ:PARA) shares added almost 7% on a CNBC report that a merger deal valued at about $8 billion with Skydance Media will be announced in the coming days.
Paramount shares added 6.8% at almost $13 in the early afternoon on Monday.
Per CNBC’s report, the deal is pending final approval from Shari Redstone, the head of National Amusements, which holds 77% of Paramount’s voting shares.
“We received the financial terms of the proposed Paramount/Skydance transaction over the weekend and we are reviewing them,” a National Amusements spokesperson told CNBC.
Under the revised deal terms, first reported by the Wall Street Journal, David Ellison-led Skydance will acquire National Amusements for about $2 billion.
It will buy almost 50% of Paramount’s non-voting shares at $15 per share for $4.5 billion, a roughly 26% premium to Friday’s closing price.
Non-voting shareholders will reportedly have the option to cash out a premium or roll into the new deal.
Skydance and its backers RedBird Capital and KKR are also set to inject $1.5 billion into Paramount to bolster its balance sheet.
Upon closing, Skydance would own two-thirds of Paramount and class B shareholders would own the other third.