National Amusements stops discussions with Skydance on Paramount deal, sources say

National Amusements has stopped talks with Skydance on a proposed merger with Paramount Global, CNBC’s David Faber reported Tuesday.

National Amusements, which is owned by Shari Redstone, the controlling shareholder of Paramount, had previously agreed to terms of a merger with a consortium that includes David Ellison’s Skydance, and private equity firms RedBird Capital and KKR. The deal had been awaiting signoff from Redstone, CNBC previously reported. National Amusements, which Redstone controls, owns 77% of class A Paramount shares.

The about face on the proposed deal not only comes days after Skydance and Paramount agreed to merger terms, but also after Paramount’s annual shareholder meeting, where the company’s leadership outlined plans for the future.

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

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