A sale of Paramount Global (PARA  ) could have varied outcomes for Shari Redstone, the controlling shareholder, and other investors in the entertainment giant.

National Amusements, controlled by Redstone and has a significant voting stake in Paramount, is in exclusive negotiations to sell itself to Skydance Media, reported The Wall Street Journal.

In the proposed deal, Redstone's company would initially receive over $2 billion in cash. Subsequently, Paramount Global would acquire Skydance in an all-stock transaction worth approximately $5 billion.

Redstone would receive cash, while investors holding nonvoting shares would receive stock in the merged entity, resulting in diluted ownership.

Tasked with securing the best outcome for all shareholders, Paramount's board's special committee must approve the deal.

The company's willingness to strike a deal has been hindered by challenges in the cable TV industry and profitability concerns in streaming.

Paramount and Skydance entered 30-day exclusive merger talks. Just before this, Apollo Global Management, Inc. (APO  ) submitted a $26 billion bid for Paramount, including assumption of debt. This offer could impact the ongoing negotiations with Skydance.

Skydance has collaborated with Paramount on major projects like "Top Gun: Maverick," "Mission: Impossible-Dead Reckoning Part One" and "Transformers: Rise of the Beasts." Merging the companies would provide greater flexibility in handling these franchises.

Skydance has explored a potential joint venture between Paramount+ and another streaming platform, aiming to significantly reduce expenses, The Wall Street Journal added.