FCC approves controversial $8.4 billion Paramount-Skydance merger

The US Federal Communications Commission (FCC) on July 24 approved the $8.4 billion merger between Paramount Global and Skydance Media, ending a prolonged review marked by political friction and allegations of press suppression. The 2-1 vote clears the way for David Ellison, son of Oracle co-founder Larry Ellison, to take control of legacy media brands including CBS, Paramount Pictures, and Nickelodeon. The deal, announced in mid-2024, was positioned as a strategic response to Paramount’s financial challenges in the evolving media landscape. Paramount+ has grown to 79 million subscribers, but the company has struggled with steep revenue declines, particularly in advertising. Skydance has committed to invest $1.5 billion into Paramount and aims to slash $2 billion in costs as part of the consolidation.

Settlement with Trump fuels allegations of political pressure

Paramount’s $16 million settlement with Donald Trump over CBS’s editing of a 2020 “60 Minutes” interview with then–Vice President Kamala Harris has drawn sharp criticism. The timing—just weeks before the merger approval—led some lawmakers and industry observers to call it a “bribe” to secure regulatory support.

FCC Chairman Brendan Carr, a Trump appointee, insisted the settlement was unrelated to the commission’s decision. However, Democratic commissioner Anna Gomez dissented, calling Paramount’s actions a “cowardly capitulation” that undermined journalistic independence. Democratic Senators Elizabeth Warren and Edward Markey also voiced concerns, with Warren questioning the recent cancellation of The Late Show with Stephen Colbert, who had publicly criticised the settlement.

CBS faces editorial uncertainty under new leadership

As part of its commitments, Skydance has agreed to avoid diversity, equity, and inclusion (DEI) programs and to appoint an ombudsman to monitor claims of editorial bias at CBS. Carr hailed the move as restoring public trust, saying Skydance’s ownership could “usher in fair, unbiased, and fact-based coverage.”

Still, CBS News employees and press advocates fear increasing editorial interference. The departure of executives who opposed the Trump settlement and the swift cancellation of Colbert’s show have heightened anxiety within the newsroom.

Shari Redstone, Paramount’s current chair, will exit the board following the merger. Her departure marks the end of an era for the Redstone family, whose media empire began with drive-in theatres and peaked with control over some of the most iconic US broadcast and film properties.

(With inputs from agencies)