FCC Approves $8.4 Billion Merger of Paramount and Skydance
The Federal Communications Commission (FCC) has approved the $8.4 billion merger between Paramount Global and Skydance Media, a decision that clears a path for a deal previously hindered by allegations of bias against CBS News.
With the merger expected to finalize in the coming weeks, Skydance will gain control over CBS, Paramount Pictures, the Paramount+ streaming service, and several cable channels including MTV, Nickelodeon, and Comedy Central.
“We’re going to celebrate now,” a source close to Skydance remarked. “We’re all beat up. Just exhausted, but it was well worth it. The next step is to close the deal early by August 7.”
This FCC approval, led by chair Brendan Carr, who was appointed by former President Trump, follows a $16 million settlement paid by Paramount to resolve a lawsuit from Trump regarding a controversial “60 Minutes” interview with Kamala Harris.
Key to the FCC's 2-1 vote were commitments from Skydance CEO David Ellison and investment partner RedBird Capital to uphold unbiased journalism that reflects diverse perspectives.
In a move aimed at enhancing transparency, Skydance plans to appoint an ombudsman to address complaints related to editorial bias at CBS.
Additionally, Paramount has dismantled its diversity, equity, and inclusion initiatives, aligning with the Trump administration's stance that such policies are discriminatory.
“Americans no longer trust the legacy national news media to report fully, accurately, and fairly,” Carr stated on Thursday. “It is time for a change. That is why I welcome Skydance’s commitment to make significant changes at the once storied CBS broadcast network.”
Following the announcement late Thursday, both Skydance and Paramount refrained from commenting further. Media heiress Shari Redstone, who controls Paramount Global, is set to receive $1.75 billion in cash upon the deal's closure and will exit the merged company’s board.
The FCC's approval also includes the transfer of broadcast licenses for 28 CBS television stations to the new ownership. This comes shortly after CBS canceled “The Late Show with Stephen Colbert,” citing financial reasons; the show had reportedly been losing around $40 million annually.
Trump's lawsuit against Paramount sought $20 billion, claiming that the Harris interview was deceptively edited to influence the 2024 election. Although CBS denied wrongdoing, it opted for a settlement to avoid a protracted legal battle that could delay the merger.
Earlier this week, Trump claimed the settlement was actually for $36 million, with new owners agreeing to allocate $20 million for public service ads supporting pro-MAGA initiatives.
“After months of cowardly capitulation to this administration, Paramount finally got what it wanted,” said Democratic FCC Commissioner Anna Gomez, who voted against the merger.
Under the terms of the deal, Skydance will acquire Redstone’s shares of National Amusements, Paramount’s majority owner. Following this acquisition, Skydance will merge with Paramount to form “Paramount Skydance Corp.” The Ellison family will control this new entity while it remains publicly traded.
David Ellison is set to assume the roles of chairman and chief executive, while Jeff Shell, a former CEO of NBCUniversal, will take on the position of president.
Shari Redstone has been at the helm of Paramount since 2019 when she successfully reunited Viacom and CBS after more than a decade of separation. Her goal was to strengthen the company’s competitive position against major entertainment players.
However, Paramount has faced significant challenges in recent years, losing billions in market valuation as it adapts to an entertainment industry transformed by streaming services.
