Skydance and Paramount's Multibillion-Dollar Merger Granted Green Light by the FCC
The Federal Communications Commission (FCC) has given the green light to the $8 billion merger between Skydance and Paramount Global, a decision that has sparked controversy due to Skydance's commitment to eliminate all diversity, equity, and inclusion (DEI) initiatives previously in place at Paramount.
The FCC's approval comes despite concerns raised by Commissioner Anna Gomez, who argued that the move would erode press freedom and threaten it in the country. Gomez dissented in the vote, urging against approving the order due to the payout and other troubling concessions Paramount made to settle a baseless lawsuit.
Republican FCC Chair Brendan Carr, however, applauded Skydance's commitments to end DEI initiatives, invest in localism, and ensure unbiased news. He reiterated attacks alleging political bias at the news divisions of major broadcast networks.
Skydance's changes to Paramount's DEI policies mark a distinct shift from the previous diversity efforts. The company will shut down Paramount’s Office of Global Inclusion, remove all references to DEI in internal messaging and public communications, and not establish any new DEI programs. Instead, Skydance will hire an ombudsman to receive and evaluate complaints of bias, aiming to address perceived media bias through oversight rather than through traditional DEI programming.
Critics argue that ending these programs could reduce intentional efforts to ensure representation of diverse communities and viewpoints in news and entertainment content, potentially narrowing the range of perspectives presented. Supporters of Skydance’s approach claim it will lead to “significant efficiencies” and a broadcasting approach more strictly aligned with equality under the law but without focused diversity mandates.
Skydance has also made commitments to ensure diversity of viewpoints in its programming and fair, unbiased, and fact-based reporting. The FCC approved the transaction and stressed that it will unleash a $1.5 billion investment into Paramount, bolstering all aspects of its operations, including broadcast.
The approval came nearly a year after the merger was finalized in 2024. Notably, Skydance did not address the $16 million settlement Paramount paid to settle a lawsuit brought by President Donald Trump.
In a statement, Skydance reaffirmed its commitment to localism as a core component of the public interest standard. The company will work closely with its affiliated broadcast stations to ensure a productive partnership that strengthens their ability to serve local communities.
The full order can be found online. The elimination of DEI initiatives may reduce structured efforts to incorporate diverse perspectives into Paramount’s news and entertainment programming, potentially affecting the variety of viewpoints made visible to audiences. This shift could have significant implications for the representation of diverse communities and viewpoints in the media landscape.
- The FCC's approval of the $8 billion merger between Skydance and Paramount Global has sparked controversy, with Commissioner Anna Gomez arguing that the move could erode press freedom.
- Gomez dissented in the vote, citing concerns about the payout and other troubling concessions made by Paramount.
- Republican FCC Chair Brendan Carr, however, applauded Skydance's commitment to ending diversity, equity, and inclusion initiatives, investing in localism, and ensuring unbiased news.
- Skydance's changes to Paramount's DEI policies mark a shift from previous diversity efforts, with the company planning to shut down the Office of Global Inclusion and not establish new DEI programs.
- Skydance has made commitments to ensure diversity of viewpoints in its programming and fair, unbiased, and fact-based reporting, aiming to address perceived media bias through oversight.
- The FCC approved the transaction and emphasized that it will unleash a $1.5 billion investment into Paramount, bolstering all aspects of its operations, including broadcast, finance, business, politics, and general-news content on video and IP transmission.
