Skydance and its financial partners have agreed to provide a $1.5-billion cash infusion to help Paramount pay down debt. The deal, as previously envisioned, also would set aside more than $4 billion to buy shares of Paramount investors who are eager to exit.

As part of the recent back-and-forth, Redstone dropped a proposal to give non-voting class shareholders the ability to vote on the matter. The additional step, which was not required because Redstone controls the voting shares, had long been a deal-breaker for Ellison, RedBird and KKR.

The preliminary agreement also carves out a 45-day period in which other interested bidders can step up to make offers for Paramount, one of the knowledgeable people said.

The proposed handoff signals the end of the Redstone family’s nearly 40-year reign as one of America’s most famous and fractious media dynasties. The late Sumner Redstone’s National Amusements was once valued at nearly $10 billion, but pandemic-related theater closures, last year’s Hollywood labor strikes and a heavy debt burden sent its fortunes spiraling.

The deal now goes to a special committee of Paramount’s board for their approval. The committee received the NAI-Skydance deal terms around 5 p.m. Eastern Tuesday. It was not clear when the board members would vote on the latest proposal.

After months of back-and-forth, Paramount’s independent board members had tentatively approved the Paramount portion of the deal in late May. About a week later, that deal was scuttled by Redstone. At the time, National Amusements said it was encouraged by the triumvirate of division heads installed to run the company as its “Office of the CEO.” The trio last week held a town hall meeting with Paramount employees to share their “going-forward” plan, which includes $500 million in cost-cutting including layoffs.

Paramount boasts some of the most historic brands in entertainment, including the 112-year-old Paramount Pictures movie studio, known for landmark films such as “The Godfather” and “Chinatown.” The company owns the CBS television network and stations including KCAL-TV (Channel 9) and KCBS-TV (Channel 2). Its once-vibrant cable channels such as Nickelodeon, TV Land, BET, MTV and Comedy Central have been losing viewers.

Paramount’s independent board committee had agreed in May to entertain a competing $26-billion offer from Sony Pictures Entertainment and Apollo Global Management. The bid, which would have retired all shareholders and paid off Paramount’s debt, initially was a favorite among many investors.

But that bid lost steam as Sony executives grew increasingly wary of taking over a company that relies on declining traditional TV channels.

Other potential buyers for National Amusements surfaced in recent months, complicating the decision for Redstone, who has overseen the family’s empire since her father began dealing with health issues eight years ago. Sumner Redstone died in 2020. The other suitors had proposed paying the family more than what was contained in the Skydance proposal.

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