Paramount Pictures' rumored merger with Skydance is on hold

After weeks of negotiations, a potential merger deal between Paramount Pictures and production company Skydance has fallen apart, according to The Wall Street Journal. Paramount parent company National Amusements said in a statement on Tuesday that the two companies were unable to "reach mutually acceptable terms" for a deal with Skydance Media.

The Hollywood Reporter reports that one possible issue is Skydance's decision not to provide legal protection to National Amusements head Shari Redstone from a lawsuit filed by shareholders. Now, she "may" seek to sell the company rather than try to merge Paramount with another, according to the Wall Street Journal.

Last year, there were rumors that the company might merge with Warner Discovery, and there were many potential acquirers besides Skydance, including Sony and Baron Allen. Paramount's former CEO Bob Bakish left the company in April this year after eight years, and his departure led to the cancellation of the acquisition.

Paramount is also trying to figure out the future of its streaming service, which has yet to turn a profit. Called Paramount+, the service saw some growth after Super Bowl XVIII, but it was a temporary boost from the Super Bowl and its relationship with CBS. The Star Trek and Halo shows didn’t generate much buzz for the platform.