Four members of Paramount Global’s board are anticipated to step down soon as the entertainment conglomerate, overseen by Shari Redstone, engages in discussions regarding a potential merger with Skydance Media.

The individuals expected to resign include former Spotify executive Dawn Ostroff, former Sony Entertainment president Nicole Seligman, Redstone attorney Rob Klieger, and investment banker Frederick Terrell.

According to sources familiar with the matter cited by the report, their departure from the board is expected to occur within the next few weeks.

Paramount declined to comment on the matter, while Klieger did not immediately respond to Reuters’ request for comment. Efforts to reach the other three directors were unsuccessful.

Following this news, shares of Paramount Global experienced a decline of nearly 4%.

Merger talks

Earlier this month, a Reuters source revealed that Paramount’s board had reached an agreement to engage in exclusive merger discussions with Skydance Media, led by CEO David Ellison, the son of Oracle co-founder Larry Ellison. A potential merger between Paramount and Skydance Media would unite Paramount with Ellison’s independent media company, known for producing blockbuster films such as “Top Gun: Maverick” and “Mission: Impossible – Dead Reckoning Part One.”

Seligman, Terrell, and Ostroff are part of a special committee of independent directors tasked with securing the most favorable deal for Paramount, whether it involves Skydance or another potential suitor, as reported by the Journal.

The report further mentioned that at least one of the departing directors had expressed reservations regarding the potential merger with Skydance.

The proposed deal structure has faced criticism from certain investors, who have raised concerns in letters to the board regarding the potential dilution of Paramount’s non-voting shareholders, according to the Journal.