Paramount, Skydance in talks about possible merger: Report

Media companies Paramount and Skydance are in talks about a possible merger, according to a new report.

The two companies have been holding discussion about a potential deal in recent weeks, The New York Times reported Tuesday, noting entertainment mogul David Ellison, founder of Skydance, has met with Paramount’s board committee to discuss his vision for a deal.

Paramount has been exploring a potential sale since last year, holding talks with some of the world's largest media conglomerates, such as Warner Bros. Discovery, over a potential merger.

Talks between Warner Bros. and Paramount broke down earlier this year.

Paramount owns major media brands including CBS, Nickelodeon and MTV.

The company's stock has fallen by double-digits since the beginning of the year, with the S&P Global downgrading its rating to junk status late last month.

During a report to investors on fourth-quarter earnings last year, the company said advertising revenue on linear television was down 15 percent but pledged to be profitable on streaming by the end of 2025.

Skydance is a leading entertainment company that produces films, television shows and video games.