The US Federal Communications Commission (FCC) has officially approved the $8.4 billion merger between Paramount Global and Skydance Media, clearing the final regulatory hurdle for a deal that had faced months of political and legal wrangling. The merger will hand over control of some of the biggest names in entertainment, CBS, Paramount Pictures, the Paramount+ streaming service, and cable networks like MTV, Nickelodeon, and Comedy Central, to independent studio Skydance, backed by billionaire David Ellison and investment firm RedBird Capital. “We’re going to celebrate now,” a source close to Skydance told The New York Post. “We’re all beat up. Just exhuasted, but it was well worth it. The next step is to close the deal early by Aug 7.” The FCC’s decision, passed by a 2-1 vote, came just weeks after Paramount paid $16 million to settle a lawsuit filed by Donald Trump over a 2020 “60 Minutes” interview with then-vice president Kamala Harris, which the president claimed was deceptively edited to sway the 2024 election. While CBS denied the allegation, it chose to settle to avoid any delays to the merger. Crucial to gaining FCC approval were assurances from Ellison, son of Oracle founder Larry Ellison, and RedBird Capital that the new management would ensure unbiased journalism at CBS. The company has promised to appoint an independent ombudsman to oversee complaints related to editorial fairness and transparency, the New York Post reported. In a move seen as politically charged, Paramount also scrapped its diversity, equity and inclusion (DEI) initiatives to align with the Trump administration’s stance, which argues such policies amount to discrimination. “Americans no longer trust the legacy national news media to report fully, accurately, and fairly,” said FCC Chair Brendan Carr, a Trump appointee. “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.” Dissenting FCC Commissioner Anna Gomez, the sole Democratic vote against the deal, condemned the decision, saying, “After months of cowardly capitulation to this administration, Paramount finally got what it wanted.” As part of the deal, Shari Redstone, the controlling shareholder of Paramount Global, will receive $1.75 billion in cash and step down from the company’s board. Her departure marks the end of the Redstone family’s direct influence over the media empire her father, Sumner Redstone, built. Skydance, known for producing hits like Top Gun: Maverick and Mission: Impossible – The Final Reckoning, will merge with Paramount to form “Paramount Skydance Corp.” The newly formed company will remain publicly traded but under the control of the Ellison family. David Ellison will serve as chairman and CEO, while former NBCUniversal boss Jeff Shell will become president. The FCC also approved the transfer of 28 CBS-owned TV station licences to the new company. This came shortly after CBS abruptly cancelled The Late Show with Stephen Colbert, citing financial reasons. The programme, despite strong ratings, was reportedly losing $40 million a year. Trump, who originally sued Paramount for $20 billion, claimed this week that the real settlement was closer to $36 million. The new owners committed $20 million to run pro-MAGA public service ads. The merger marks a dramatic turning point for Paramount, which has struggled in recent years with declining revenues and the challenges of streaming-era disruption. Redstone had initially reunited CBS and Viacom in 2019 in a bid to strengthen the company’s competitive footing, but the rapidly changing media landscape proved difficult to navigate. With the deal now approved, all eyes will be on Ellison and Skydance as they take the reins of one of America’s most iconic media brands.
