Paramount Global, one of Hollywood's oldest studios, has agreed to merge with production company Skydance Media.
Under the deal, Paramount's non-executive chairman Shari Redstone would sell a controlling stake in the company in a complex transaction that would lead to a merger.
It marks the end of an era for the Redstone family, whose late patriarch, Sumner Redstone, transformed a chain of drive-in theaters into a vast media empire.
In addition to Paramount, the group includes television networks CBS, Comedy Central, Nickelodeon and MTV.
According to the company, the TV channel has over 4.3 billion subscribers in over 180 countries.
The merger would combine Paramount, the maker of classics like “Chinatown” and “Breakfast at Tiffany’s,” with the financial partner behind more recent blockbusters like “Top Gun: Maverick” and “Star Trek into Darkness.”
Paramount Global's origins date back more than 100 years to the founding of Paramount Pictures Corporation in 1914.
The studio has produced many popular films, including The Godfather, Star Trek, and the Mission Impossible series.
But the entertainment giant has struggled over the past decade. Paramount Global's stock has fallen more than 75% over the past five years.
Skydance is owned by David Ellison, son of Larry Ellison, founder of U.S. technology giant Oracle.
In April, Paramount CEO Bob Bakish left the company after a dispute with Redstone over the Skydance deal.
The deal comes as the global entertainment industry is being transformed by the video streaming revolution.
