NEW YORK — The Federal Communications Commission approved Paramount's $8 billion merger with Skydance on Thursday, concluding months of uncertainty surrounding the deal. This approval comes amid significant political controversy, particularly involving former President Donald Trump and his legal disputes with CBS, a subsidiary of Paramount.
The FCC voted 2-1 in favor of the merger, which includes Paramount Pictures, CBS, Comedy Central, and Nickelodeon. The approval follows a $16 million settlement that Paramount reached with Trump earlier this month. Critics have condemned this settlement as a potential bribe to secure the merger, raising concerns about editorial independence within the media.
FCC Chairman Brendan Carr praised the merger, stating it could restore public trust in CBS. "Americans no longer trust the legacy national news media to report fully, accurately, and fairly. It is time for a change," Carr said. He emphasized that Skydance has committed to ensuring that CBS News will provide fair and unbiased reporting.
In a filing, Skydance's management assured regulators that they would promote a diversity of viewpoints in their programming. They also plan to hire an ombudsman to address any complaints regarding fairness in news coverage. However, the company has pledged not to implement any diversity, equity, and inclusion policies, which has drawn criticism from various quarters.
The merger has been contentious, particularly due to Trump's previous lawsuits against CBS over the editing of a "60 Minutes" interview with his political opponent, Kamala Harris. Trump initially sought $10 billion in damages, later increasing the amount to $20 billion, claiming mental anguish. Paramount's settlement with Trump has been viewed by some as a capitulation to political pressure.
FCC Commissioner Anna Gomez, the only Democrat on the commission, opposed the merger. She described the settlement as a "cowardly capitulation" and warned that it could set a dangerous precedent for press freedom. "Unfortunately, it is the American public who will ultimately pay the price for its actions," Gomez stated.
The merger is expected to reshape the media landscape, with Skydance founder David Ellison poised to lead the newly combined company. Ellison has indicated plans to transition Paramount into a "tech hybrid" to remain competitive in the evolving entertainment industry. This includes revamping the Paramount+ streaming service and expanding direct-to-consumer offerings.
As the merger moves forward, concerns about editorial independence at CBS have intensified. Reports indicate that changes in oversight have already affected the production of "60 Minutes," leading to resignations among key staff. The recent appointment of Tanya Simon as the new top producer is seen as an effort to stabilize the program amid these changes.
With the FCC's approval, Paramount and Skydance are now on track to finalize the merger, which they hope to complete by September.