Paramount and Skydance agreed on the merger terms, which could be valued at $8 billion. It has been months since the two entertainment firms began discussing a possible merger and acquisition deal that could allow Skydance to acquire Paramount Global. In the latest update about their M&A deal, the merger is near finalization. 

Paramount and Skydance Agree on Merger Terms

The New York Post reported that Skydance's founder, David Ellison, agreed to the merger's terms. Among the terms is Skydance paying Paramount's parent company, National Amusements, $2 billion.

Skydance will also buy almost 50% of Paramount's class B shares, which are estimated to be worth $4.5 billion. In addition, private equity firms KKR and RedBird Capital will support Skydance in paying Paramount Global's debt.

The entertainment firm will add $1.5 billion in cash to Paramount's balance sheet. Another term in the M&A deal requires Shari Redstone, who owns 77% of Paramount's class A shares, to sign the agreement without a shareholder vote.

Read Also: Sony, Apollo Bid $26 Billion in Cash for Paramount Global

Will Paramount-Skydance Merger Happen?

As of writing, it is still unclear if the Paramount-Skydance merger will really happen. However, an update is expected to be provided during Paramount's annual shareholder meeting, which will take place on Tuesday, June 4.

"We received the financial terms of the proposed Paramount/Skydance transaction over the weekend and we are reviewing them," a National Amusements official explained via CNBC.

Because of the terms that Skydance and Paramount agreed on, the merger deal is now valued at $8 billion, which is a drastic increase from the previous offer of $5 billion.

Related Article: Paramount, Amazon Initiate Talks on Expanding Media Partnership