Over the last month, reports have circulated that Paramount is nearing an agreement to be sold to or merged with Skydance.

Skydance has now made a final and best offer of around $5 billion to merge with Paramount. According to CNBC, the Redstone family would receive $2 billion, while Class B shareholders will receive $3 billion to assist complete the transaction.

This all comes as Paramount prepares to publish its earnings after the markets close today. It is widely assumed that Paramount will replace its CEO today, before the earnings call.

READ MORE: Paramount Receives A Last $5 Billion Offer From Skydance Media To Close Its Merger

Last week, CNBC reported that a deal to unite Paramount and Skydance is nearing completion, but Spectrum Cable TV may provide a challenge. Paramount has until April 30 to arrange an agreement with Spectrum to keep its stations on the cable television network. According to CNBC Spectrum, this could be a difficult contract to negotiate. This comes after Spectrum was prepared to walk away from Disney last year, just as football season began.

Skydance appears to be paying careful attention to the negotiations, which could have a significant impact on the merger.

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Variety reported earlier this month that Paramount Global had declined a bid to sell to Apollo Global Management for $27 billion. This offer was apparently made over the weekend as a cash deal, but Shari Redstone, Paramount’s majority owner, declined to consider it.

The exact contents of the offer have not been released, but it is said that the Redstone family, who owns the majority of Paramount, prefers the Skydance agreement to other offers.

The New York Times reported last month that Paramount and Skydance Media are working on a pact that would allow Skydance a 30-day window for exclusive negotiations as the two sides try to conclude a deal. Exclusive windows such as these are prevalent in discussions like this. It does not guarantee that a deal will be reached; but, windows like this occur when both parties believe a settlement is quite likely.

READ MORE: Paramount Reportedly Declined A $27 Billion Offer To Be Sold This Week

Shari Redstone, a media executive, currently controls Paramount Global. Redstone also controls National Amusements, which owns 77% of Paramount’s voting stock. According to reports, the Redstone family is also considering selling its 77% stake in Paramount. With that ownership, the Redstone family must approve any transaction, and it has been stated that they are more interested in this proposal than others, such as Appollo Global Management’s plan to buy only the studios.

Any merger appears to require the entire Paramount corporation to include its cable TV networks, which include Nickelodeon, Comedy Central, MTV, and several movie theaters.

According to reports, Paramount and Skydance have been in talks since November 2023.

The announcement comes as the entertainment business faces difficult times, with cable TV viewership decreasing and the majority of streamers struggling to make a profit. Paramount’s streaming service, Paramount+, is one of the companies struggling to stay afloat.