Skydance Media has reached a preliminary agreement to buy Shari Redstone's family company National Amusements and merge with Paramount Global, the Wall Street Journal reported Tuesday.
Shares of Paramount were up 9% in after-hours trading.
Redstone's National Amusements plans to refer the new deal to a Paramount special committee for review, the report said, citing people familiar with the matter.
Skydance will pay $1.75 billion for National Amusements as part of the deal, the report said.
Paramount declined to comment, while National Amusements and Skydance did not immediately respond to Reuters request for comment.