FCC Approves Paramount-Skydance Merger Amid Political Controversy
The Federal Communications Commission (FCC) has approved the $8 billion merger between Paramount Global and Skydance Media, ending a yearlong legal and regulatory drama. FCC Chairman Brendan Carr expressed support for the merger, citing the need to restore trust in news media by ensuring diverse viewpoints and reducing perceived bias. This decision follows Paramount’s settlement with former President Donald Trump, which involved significant financial compensation and changes to CBS News’ editorial policies.
Carr emphasized the importance of the merger, stating that the new company’s programming would embody a diversity of viewpoints from across the political and ideological spectrum. He also noted that Skydance’s commitments to enhancing local news and reporting would benefit the American people. The FCC’s decision also marks a step forward in its efforts to eliminate invidious forms of DEI (Diversity, Equity, and Inclusion) discrimination.
The merger comes just days after Paramount settled President Donald Trump’s lawsuit for multi-million dollars. As part of the settlement, CBS canceled ‘The Late Show with Stephen Colbert,’ sparking widespread controversy. Industry insiders believe the merger aims to eliminate the perceived liberal slant at CBS News, with Skydance committing to appoint an ombudsman to oversee CBS News content.
The newly formed Paramount Skydance Corp. is led by CEO David Ellison, the son of billionaire Oracle co-founder Larry Ellison, and former NBCUniversal CEO Jeff Shell. Shari Redstone, the former controlling shareholder of Paramount, will exit the company. The merger also involves significant financial commitments, with Redstone set to receive a substantial severance package as part of the deal.
Before the merger became official, Paramount and CBS agreed to settle Trump’s ‘election interference’ lawsuit for a sum expected to be north of $30 million. This settlement has drawn criticism from various media figures, including longtime ’60 Minutes’ correspondent Steve Kroft, who called it a ‘shakedown.’ Meanwhile, the cancellation of Stephen Colbert’s late-night show has led to speculation about political motivations behind the decision.
Democrat senators have demanded a full FCC vote on the merger, citing concerns about the Trump settlement and the Colbert cancellation. This case highlights the increasing intersection of corporate media decisions with political and legal considerations, raising questions about the future of news media in the United States.