Sources report that National Amusements has halted negotiations with Skydance on the Paramount deal.

Sources report that National Amusements has halted negotiations with Skydance on the Paramount deal.
Sources report that National Amusements has halted negotiations with Skydance on the Paramount deal.

According to CNBC's David Faber, National Amusements has ended negotiations with Skydance regarding a potential merger with .

The merger between National Amusements, owned by Shari Redstone, and a consortium consisting of David Ellison's Skydance, RedBird Capital, and KKR had been agreed upon. However, the deal was pending Redstone's approval. National Amusements owns 77% of class A Paramount shares.

The proposed merger between Skydance and Paramount, which was agreed upon days earlier, was met with an about face after Paramount's annual shareholder meeting, where the company's leadership presented plans for the future.

Paramount shares closed nearly 8% lower Tuesday following the report.

This is breaking news. Please check back for updates.

by Lillian Rizzo

Business News