The proposed $8.4 billion merger between Paramount Global and Skydance Media has received approval from U.S. regulators, paving the way for a deal that stirred debate over press freedom.
Green Light for a Media Giant
The Federal Communications Commission (FCC) officially approved the merger, allowing the transfer of CBS television stations. This crucial step clears the path for tech scion David Ellison to take ownership of major entertainment properties.
These assets include the CBS broadcast television network, the iconic Paramount Pictures film studio, and popular cable channels like Nickelodeon. The deal marks a significant shift in the media landscape.
A Controversial Settlement
The approval comes after Paramount Global made a controversial move this month, paying $16 million to settle a lawsuit filed by former President Donald Trump against the company and CBS News. Critics argued this settlement effectively bought approval for the merger.
Trump had sued over CBS’s editing of a “60 Minutes” interview with Kamala Harris, claiming it was biased. While First Amendment lawyers deemed the lawsuit baseless, Paramount opted to settle, sparking accusations of “cowardly capitulation” from some.
FCC’s Divided Vote and New Directives
The FCC’s approval was not unanimous, passing with a partisan 2-1 vote. Republican-appointed FCC Chairman Brendan Carr stated the agency received assurances from the incoming owners regarding their commitment to unbiased journalism.
Additionally, Carr noted that Skydance pledged to appoint an ombudsman for editorial bias complaints and would not establish certain diversity, equity, and inclusion (DEI) initiatives that Trump has criticized. Carr hailed this as a step towards eliminating “invidious forms of DEI discrimination.”
However, Democrat Anna Gomez, the dissenting FCC commissioner, strongly criticized Paramount’s settlement and accused the FCC of imposing “never-before-seen controls over newsroom decisions.”
New Leadership and a Shifting Era
With the merger cleared, David Ellison, son of Oracle co-founder Larry Ellison, is set to become the chair and chief executive of the new Paramount. Former NBCUniversal chief Jeff Shell will serve as its new president.
This transaction also signifies the end of an era for the family of the late Sumner Redstone, who built a vast media empire. His daughter, Shari Redstone, has steered Paramount through a challenging period as it grappled with the streaming video revolution, which has significantly impacted traditional media companies.
- The $8.4 billion Paramount-Skydance merger has been approved by U.S. regulators.
- Paramount recently paid $16 million to settle a lawsuit from Donald Trump, drawing criticism.
- The FCC approved the deal with a 2-1 partisan vote, including conditions on journalism and DEI initiatives.
- David Ellison will lead the new company, marking a new chapter for the media giant.
The newly combined entity will now navigate a rapidly evolving entertainment landscape, aiming to compete effectively in the digital age.
