Shares of Paramount Global (NASDAQ:PARA) experienced a substantial surge, marking their most significant rise in two months.

This increase occurred after the revival of a merger agreement with Skydance Media.

The preliminary deal involves Skydance Media acquiring National Amusements and subsequently merging with Paramount, the conglomerate behind major networks such as CBS and MTV.

A source close to the proceedings, who preferred to remain anonymous, revealed this information.

According to the source, the family-owned company National Amusements, which holds control over Paramount, is set to refer the deal to a special committee of Paramount directors for a thorough review.

This move comes after a recent setback last month when initial discussions between Skydance and National Amusements fell through. However, the talks were reignited over the past week, gaining momentum by Tuesday.

The updated terms of the deal reportedly offer a higher valuation for National Amusements and include stronger protective measures against potential litigation post-merger, specifically safeguarding the Redstone family's interests.

In response to these developments, Paramount Global's shares soared by as much as 13%, reaching a high of $12.13.