Hollywood icon Paramount agrees merger deal

One of Hollywood's oldest studios, Paramount Global, has agreed to merge with production firm Skydance Media.

Under the deal, Paramount's non-executive chair Shari Redstone will sell her family's controlling stake in the company in a complex transaction that will result in a merger.

It marks the end of an era for Redstone family, whose late patriarch, Sumner Redstone, transformed a chain of drive-in cinemas into a vast media empire.

As well as Paramount, the group includes the television networks CBS, Comedy Central, Nickelodeon and MTV.

According to the company its TV channels have a global reach of over 4.3 billion subscribers across more than 180 countries.

The merger would combine Paramount, home of classic films like Chinatown and Breakfast at Tiffany's, with its financial partner on several recent big releases, including Top Gun: Maverick and Star Trek Into Darkness.

Paramount Global traces its origins back more than a century to the founding of Paramount Pictures Corporation in 1914.

The studio has made many hit films, including the Godfather, Star Trek, and Mission: Impossible series.

But the entertainment giant has struggled over the past decade. Paramount Global's shares have fallen by more than 75% in the last five years.

Skydance is owned David Ellison, the son of Larry Ellison, who founded US technology giant Oracle.

In April, Paramount's chief executive Bob Bakish left the company after clashing with Ms Redstone over the Skydance deal.

The deal comes as the global entertainment industry is being transformed by the video streaming video revolution.