Paramount Global and Skydance Media are engaged in exclusive talks for a potential merger.

Shari Redstone, majority shareholder of Paramount Global, has provisionally agreed to sell her stake to Skydance Media.

Paramount Global's market capitalization has notably declined, falling below $10 billion.

The Redstone family's holding company, National Amusements, controls a significant portion of media assets and owns 77% of Paramount's voting shares.

Skydance Media CEO David Ellison is contemplating an all-cash offer for National Amusements.

Negotiations between the parties have been active since at least November of the previous year.

The potential transaction could lead to substantial changes within the entertainment industry.