Paramount and Skydance, who abruptly ended merger talks just weeks ago, have now reached a preliminary deal to create a new Hollywood powerhouse. The agreement, which still needs approval from Paramount’s board of directors, follows a clash between Shari Redstone, Paramount’s controlling shareholder, and Skydance during the previous negotiations. The two sides had agreed on economic terms before talks fell apart in June. Now, a special committee will assess whether the new terms are acceptable to shareholders, some of whom strongly opposed the previous deal. One key issue will be the level of protection for National Amusements, Paramount’s parent company, in case of shareholder lawsuits. This unexpected turn of events signifies a potential breakthrough in the longstanding merger discussions between Paramount and Skydance, with implications for the future of both companies and the wider Hollywood industry.