July 8 Reuters Skydance Media and Paramount Global agreed to merge, the companies announced late on Sunday, scripting a new chapter for one of Hollywood39;s oldest studios.

The companies agreed to a twostep process in which Skydance and its deal partners will acquire National Amusements, which holds the Redstone family39;s controlling stake in Paramount, for 2.4 billion in cash.

Skydance will subsequently merge with Paramount, offering 4.5 billion in cash or stock to shareholders and providing an additional 1.5 billion for Paramount39;s balance sheet.

Class B, nonvoting shares of the CBS broadcast network owner, which rose more than 3 in trading before the bell, fell 1.8 at the open; Class A voting shares rose 4.8.

David Ellison, the 41yearold tech scion who founded Skydance, will become chairman and chief executive of the new Paramount. Jeff Shell, former chief executive of NBCUniversal, will be its new president.

The goal of the deal is to position the new Paramount as a tech hybrid, to be able to transition to meet the demands and needs of the evolving marketplace. Ellison told financial analysts on Monday.

The deal represents the end of an era for Shari Redstone, whose father and late patriarch, Sumner Redstone, transformed the family39;s chain of drivein movie theaters into a media empire that included Paramount Pictures, the CBS broadcast network and cable television networks Comedy Central, Nickelodeon and MTV.

Given the changes in the industry, we want to…