(Bloomberg) -- Film and TV producer David Ellison has sweetened his bid for Paramount Global, offering to increase what he’s willing to pay to investors unaffiliated with the company’s controlling stockholder, according to a person with familiar with the matter.

Ellison’s Skydance Media is reducing the amount it’s willing to pay controlling investor Shari Redstone and directing more money to the company’s nonvoting shareholders, said the person, who asked not to be identified discussing nonpublic terms. 

Paramount, the parent of CBS, MTV and other media businesses, has been evaluating its strategic options after getting approached by Ellison last year. 

Class B shares of Paramount, the nonvoting stock, rose as much as 3.6% to $12.12 in New York. The Wall Street Journal reported on the developments earlier Thursday.

The 41-year-old son of Oracle Corp. co-founder Larry Ellison has proposed buying the Redstone family’s shares in Paramount and then merging his business into the company. In addition to purchasing the Redstones’ interest, Ellison had planned to invest directly in Paramount. His previous offer included $3 billion that could be used for debt reduction, share repurchases and cash for shareholders.

A number of Paramount investors, including Mario Gabelli and Ariel Investments’ John Rogers, have expressed disapproval for a deal that would cash out the Redstone family at a premium and dilute the holdings of other shareholders in a merger.

Apollo Global Management Inc. and Sony Group Corp. proposed their own $26 billion offer for Paramount, which would include buying out all of the shareholders. It was one of several approaches Apollo made for the company, including one for just for the film studio.

The deal is a rare opportunity to acquire one of Hollywood’s famous movie studios. Paramount Pictures, founded in 1912, is the home of The Godfather, Star Trek and the Top Gun film franchises.

But the company, like many of its media peers, is struggling with the transition from traditional TV viewing to streaming. Broadcast and cable channels have lost viewers and advertising revenue. Paramount’s streaming service has continued to lose money.

The ultimate decision to sell is largely up to Redstone, the 70-year-old chair of the board and matriarch of the family that owns most of Paramount’s voting shares. Her father, Sumner, assembled the media empire over nearly 40 years. But the company’s market value has fallen since CBS Corp. and Viacom Inc. merged to create Paramount Global five years ago and its debt has been downgraded to junk bond status.

The company replaced its longtime chief executive officer, Bob Bakish, with a trio of senior executives. The group, which includes the heads of CBS, MTV and Paramount Pictures, has been working on a new plan that will involve cost cuts and a possibly a partnership in the streaming business.

(Updates with share price in fourth paragraph.)

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