Shari Redstone will not stay on the board of Paramount Global after the company completes its planned merger with Skydance Media next year, a report said.
Both Redstone and her son, Tyler Korff, have the option to join the board of the new company but have no plans to do so, Bloomberg News reported, citing people familiar with the matter.
In July, Skydance, along with its deal partners, initiated a two-step acquisition process to gain control of the entertainment and media company. This began with the acquisition of National Amusements, which holds the Redstone family's controlling stake in Paramount, for $2.4 billion in cash.
The company will then merge with Paramount, offering shareholders $4.5 billion in cash or stock and providing an additional $1.5 billion for Paramount's balance sheet.
Redstone will receive $180 million as her severance pay, plus other benefits. The amount is over and above the millions of dollars that she is bound to receive from the sale of her National Amusements shares to Skydance.
Redstone owns 20% of National Amusements and holds the position through two trusts in her name. With the sale, the Paramount chair is expected to receive a whopping $350 million.
Skydance's acquisition of Paramount requires group CEO David Ellison to pay off obligations, which include a severance package for Redstone worth $70 million and a $110 million unfunded pension liability.
Ellison will serve as chairman and CEO of the new Paramount, while Jeff Shell, the former chief executive of NBCUniversal, will take on the role of president.
Recently, Skydance submitted an updated filing with the Federal Communications Commission (FCC) indicating that Ellison will hold 100% percent of the Ellison family's voting interests in the newly merged Skydance-Paramount.
Earlier filings with the FCC indicated that billionaire Larry Ellison, co-founder of Oracle and David Ellison's father, would be the majority shareholder of NAI and would control the newly merged Paramount-Skydance.
In preparation for the merger in 2025, the board of Paramount Global recently stated that the company's three co-CEOs will continue to receive their annual bonus payments, even if they are no longer in their leadership positions.
An SEC filing revealed that the three co-CEOs -- Chris McCarthy, George Cheeks, and Brian Robbins -- will be able to resign and receive severance payments if their new responsibilities are "substantially inconsistent" with their roles or if there is a material reduction in the positions or duties.
