Merger of Paramount and Skydance given green light by FCC after lengthy, contentious discussions among political figures
In a significant move for the media industry, the Federal Communications Commission (FCC) has approved the $8-billion takeover of Paramount Global by Skydance Media. This approval marks the final regulatory hurdle for the acquisition, which consolidates extensive media assets and shapes the future competitive landscape.
The decision comes after months of turmoil and a lawsuit by former President Donald Trump over edits to a "60 Minutes" broadcast. Paramount agreed to pay Trump $16 million to settle the lawsuit, with the funds primarily going towards Trump's presidential library. Despite the settlement, Paramount notably refused to apologize for its reporting or edits, maintaining its journalistic ethics and First Amendment rights.
The approval process was a timely moment for Paramount, as the settlement helped remove a critical legal distraction that might have complicated regulatory review and investor confidence. The removal of this legal uncertainty contributed to regulatory confidence, leading to the FCC's approval.
The merger combines Paramount+ streaming, Paramount Pictures, CBS network and news stations, and various other media brands under Skydance’s umbrella, creating a major entertainment powerhouse. Key figures involved in the negotiation included Shari Redstone, tech billionaire Larry Ellison and his son David (Skydance’s head), and others tied to CBS and Skydance leadership.
David Ellison, Skydance CEO, has met with FCC Chairman Brendan Carr in Washington to discuss the takeover of Paramount. Larry Ellison, Oracle's co-founder, and his family will take over Paramount's CBS television station licenses. Ellison will serve as chairman and CEO, while former NBCUniversal Chief Executive Jeff Shell is slated to be president.
After their debts are paid, the Redstone family will leave with $1.75 billion. Skydance has also promised to install an ombudsman at CBS News for at least two years to promote transparency and increased accountability.
The merger, originally expected to close in the first half of 2025, faced delays amid scrutiny and ongoing corporate maneuvers. However, the approval of the FCC has paved the way for the deal to close, with the Ellisons' takeover of Paramount expected to be complete in the coming days.
Meanwhile, CBS' current leader George Cheeks could join the new regime. The move in Washington comes after Paramount agreed to pay $16 million to settle the president's personal lawsuit, a decision that was met with criticism from some U.S. senators. Sen. Elizabeth Warren (D-Mass.) and others lambasted the settlement talks, saying that paying Trump money to end a "bogus" lawsuit could be akin to paying a bribe.
In a separate development, 'South Park' creators Trey Parker and Matt Stone negotiated two staggering deals with Paramount, bringing the foulmouthed cartoon to Paramount+. These deals underscore Paramount's commitment to expanding its content offerings as part of the Skydance merger.
As the dust settles on this significant deal, the media landscape is poised for a shakeup, with Skydance and Paramount set to become a formidable force in the industry.
- The Federal Communications Commission (FCC) has approved the takeover of Paramount Global by Skydance Media, marking the final regulatory hurdle for the $8-billion deal.
- The approval comes after a lawsuit by former President Donald Trump over edits to a "60 Minutes" broadcast, with Paramount agreeing to pay him $16 million as part of the settlement.
- The timely settlement helped remove a legal distraction that might have complicated the regulatory review and investor confidence for Paramount.
- The merger combines Paramount+ streaming, Paramount Pictures, CBS network and news stations, and various other media brands under Skydance’s umbrella.
- David Ellison, Skydance CEO, met with FCC Chairman Brendan Carr in Washington to discuss the takeover of Paramount.
- Larry Ellison, Oracle's co-founder, and his family will take over Paramount's CBS television station licenses.
- Skydance has promised to install an ombudsman at CBS News for at least two years to promote transparency and increased accountability.
- The deal, originally expected to close in the first half of 2025, faced delays amid scrutiny and ongoing corporate maneuvers.
- CBS' current leader George Cheeks could join the new regime.
- In a separate development, 'South Park' creators Trey Parker and Matt Stone negotiated deals with Paramount, bringing the foulmouthed cartoon to Paramount+.
- As the dust settles on this significant deal, the media landscape is poised for a shakeup, with Skydance and Paramount set to become a formidable force in the industry, potentially impacting areas such as finance, technology, entertainment, politics, general news, crime-and-justice, and sports.
