Skydance agrees to merge with Paramount.

• The Redstone family's control over the storied movie studio and CBS broadcast network will end with Paramount Global's merger with Skydance.
• The agreement caps off months of negotiations with various twists and turns.
• Larry Ellison's son, David Ellison, will lead a major Hollywood studio as the founder of Skydance.

The Redstone family will relinquish control of Skydance, ending a months-long negotiation that included numerous twists and turns.

On Sunday, Paramount's special committee approved the merger with Skydance, just days after National Amusements, the controlling shareholder of Paramount, reached a preliminary agreement with Skydance. Previously, a deal had been halted weeks earlier.

The latest version of the deal will result in the buying consortium investing over $8 billion in Paramount and acquiring National Amusements.

The merger between Paramount and Viacom is contingent upon regulatory approval and includes a 45-day "go-shop period," during which the Paramount special committee can explore other potential deals.

The completion of the Skydance merger would signify a significant change in the ownership of Paramount and the entire Hollywood industry.

The Redstone family has long been in control of the movie studio, CBS broadcast network, and cable TV networks like MTV and Nickelodeon, known for producing films such as "The Godfather," "Top Gun," and "Forrest Gump."

David Ellison, the founder of Skydance and son of Larry Ellison, will become a major player in Hollywood as the merger puts him in charge of a movie studio.

As CEO, Ellison will lead the merged company, with former NBCUniversal president Jeff Shell serving as president.

Paramount's shares were trading at roughly $12 per share premarket Monday.

The stock of the legacy media giant has experienced significant fluctuations in the past year due to a weak advertising market and a decline in cable TV subscriptions. Additionally, its streaming platform, Paramount+, has not yet achieved profitability.

Reaching a deal

Nearly $15 billion in debt, Paramount began discussing deals with potential buyers last year amidst industry challenges.

In recent months, Bob Bakish stepped down as CEO of Paramount and was replaced by a trio of company leaders, bringing Skydance and Paramount closer to a deal.

Early June, the parties reached an agreement on a deal's terms, but Redstone halted it a week later.

The "Office of the CEO" at Paramount, consisting of CBS CEO George Cheeks, Paramount Media Networks CEO Chris McCarthy, and Paramount Pictures CEO Brian Robbins, initiated a plan to restructure the company through debt reduction and the pursuit of a streaming joint venture partnership.

In recent weeks, other interested bidders have emerged, including media tycoon Barry Diller.

Disclosure: Comcast's NBCUniversal is the parent company of CNBC.