FCC Approves Paramount-Skydance Deal
The Federal Communications Commission (FCC) has given the green light for the $8 billion merger between Paramount Global and David Ellison’s Skydance Media. This approval marks the final regulatory hurdle for the deal, paving the way for it to close in the coming weeks.
The FCC approved the transfer of licenses for 28 CBS-owned local TV stations to the Skydance-led ownership group. The decision was made with a 2-1 vote, with Commissioner Anna Gomez opposing it. Gomez expressed concerns about Paramount’s settlement with President Trump and other concessions, stating that the American public may ultimately bear the consequences of these actions.
In order to secure the FCC’s approval, Skydance made commitments to promote diversity, equity, and inclusion programs at both Skydance and Paramount. Additionally, an ombudsman will be appointed to address complaints of bias or other concerns involving CBS to ensure viewpoint diversity.
The approval comes after Paramount agreed to pay $16 million to settle a lawsuit with President Trump over a “60 Minutes” interview with Kamala Harris. Despite claims that the settlement was separate from the merger approval process, there have been allegations of a quid-pro-quo arrangement to secure the Trump administration’s support for the merger.
Under the terms of the merger, Larry Ellison, Skydance, and RedBird Capital will acquire National Amusements Inc., which owns a majority stake in Paramount Global. The new entity, Paramount Skydance Corp., will be headed by David Ellison as chairman and CEO, with Jeff Shell serving as president.
As the deal awaited FCC approval, Paramount underwent several rounds of layoffs to cut costs. The company’s current co-CEOs are eligible for enhanced severance payments in the event of a sale or merger, providing them with financial security in case of termination.
Overall, the FCC’s approval of the Paramount Global and Skydance Media merger sets the stage for a new chapter in the entertainment industry, with a focus on diversity, equity, and inclusion. The integration of the two companies is expected to bring about significant changes and opportunities for growth in the media landscape.
