business • Sept. 5, 2025

FCC Greenlights Skydance–Paramount $8 Billion Merger Amid Controversy

The Federal Communications Commission has approved Skydance Media’s $8–8.4 billion acquisition of Paramount Global, clearing regulatory hurdles after political and legal concessions tied to media bias, DEI rollback, and a high-profile lawsuit settlement.

In a landmark regulatory decision, the U.S. Federal Communications Commission approved Skydance Media’s acquisition of Paramount Global, valued at approximately $8 to $8.4 billion. The merger—ratified in a 2‑1 partisan vote—transfers control of iconic entertainment assets including CBS broadcast television stations, Paramount Pictures, Paramount+, MTV, Nickelodeon, and Comedy Central to the newly formed Paramount Skydance Corp.

The approval followed months of scrutiny and political tension, reaching a crescendo after Paramount paid $16 million to settle a lawsuit filed by former President Donald Trump over a controversial '60 Minutes' interview with then–Vice President Kamala Harris. FCC Chair Brendan Carr, a Trump appointee, maintained that despite the company’s settlement, the merger decision was based strictly on Skydance’s editorial commitments and not the lawsuit timing Rather than a routine merger, the outcome has been described as politically entwined, prompting critics to label it an erosion of press freedom under administrative pressure. Democratic Commissioner Anna Gomez dissented vocally, accusing the commission of 'cowardly capitulation' and unprecedented interference in newsroom independence, while Senators Elizabeth Warren and others raised alarms about corruption and free-speech implications To secure regulatory support, Skydance CEO David Ellison—son of Oracle’s Larry Ellison—and investment partner RedBird Capital made binding commitments: appointing an independent ombudsman for at least two years to evaluate editorial bias complaints at CBS, ensuring coverage spans the full ideological spectrum, and permanently eliminating all diversity, equity, and inclusion (DEI) initiatives within the new entity—moves championed by FCC leadership as necessary reforms to rebuild public trust in legacy media Under the deal, CBS co‑CEO Chris McCarthy is expected to depart after the merger closes, while former NBCUniversal chief Jeff Shell will become president of the combined company; David Ellison will serve as CEO and chair, marking the end of Shari Redstone’s decades‑long control over Paramount, with Redstone set to exit the board and receive approximately $1.75 billion in cash The merger has sparked waves of criticism from media watchdogs, press‑freedom advocates, Democratic lawmakers, and academic commentators who argue that using contract settlements and editorial demands to influence corporate consolidation creates a dangerous precedent.

Senators Markey and Luján condemned the timing of the deal and settlement, asserting that the sequence 'reeks of the worst form of corruption,' while others warn the collapse of DEI policies may curtail newsroom diversity and accountability The approval process concluded after more than 250 days—far exceeding the FCC’s 180‑day review timeline—and marks a symbolic shift in regulatory posture, with the agency under Carr embracing ideological conditions on content previously unseen in corporate merger approvals Financially, Paramount’s stock rose approximately 1–2 percent immediately following the announcement, reflecting investor optimism about corporate clarity and consolidation momentum in an entertainment industry grappling with streaming disruption, debt, and declining cable revenues While the merger formally closes in coming weeks, it ignites critical industry questions: Can regulatory agencies mandate newsroom reforms as merger conditions? Does forcing a rollback of DEI policies violate journalistic norms or legal protections? Will media consolidation under politically aligned leadership reshape editorial independence? As corporate governance theories intersect with ideological agendas, the Skydance‑Paramount merger stands as a pivotal case at the crossroads of law, politics, and media power in the Trump era..