Paramount walks away from merger deal with Skydance

Paramount has ended talks with media conglomerate Skydance on a merger, according to multiple reports.

News of talks breaking down came Tuesday, just days after the two sides had reportedly agreed to a deal that would have seen media mogul Shari Redstone cede control of her sprawling media empire, which includes CBS, Paramount Pictures and several other top assets.

Paramount has for months been looking for a potential buyer as the company continues to face major questions about its financial health from Wall Street investors and media business observers.

Last week, the company promised to cut some $500 million from its budget in near-term cost savings and ousted its CEO Bob Bakish earlier this year.

Paramount, like all major media companies, is struggling to deal with a decline in linear broadcast viewership and tightening advertising market.

There had been several sticking points during talks between Paramount and Skydance, the New York Times reported, including a request from Redstone to have Skydance provide legal protection in the event of an investor lawsuit.