Federal Communications Commission grants approval for the merger between Paramount and Skydance, following Skydance's commitment to anti-Diversity, Equity, and Inclusion promises made by their CBS watchdog.
FCC Approves $8 Billion Paramount-Skydance Merger
The Federal Communications Commission (FCC) has granted approvals for the $8 billion merger of Paramount Global and Skydance Media, marking the removal of the final regulatory hurdle for the deal. The merger, first announced over a year ago, is expected to close in the coming weeks.
The FCC commission voted 2-1 to approve the deal, with Commissioner Anna Gomez opposing it. Gomez expressed concerns over Paramount's payment of $16 million to President Trump to settle his lawsuit against CBS over a "60 Minutes" interview with Kamala Harris, as well as other concessions.
FCC chairman Brendan Carr, however, welcomed Skydance's commitment to make significant changes at CBS. Carr has been unapologetic in pushing Trump's agenda to eradicate diversity, equity, and inclusion (DEI) programs and crack down on alleged "media bias."
In a bid to address these concerns, Skydance made several commitments in the FCC approval process. These commitments include:
- Eliminating existing DEI policies that were in place at Paramount, as Skydance pledged not to have DEI programs after the takeover.
- Creating a CBS News ombudsman position to review and address complaints of bias or other concerns within CBS News. This ombudsman will report findings directly to the new Paramount president, aiming to root out perceived bias at the network.
- Ensuring that the new company’s programming embodies a diversity of viewpoints, specifically including a broad spectrum of political and ideological perspectives. This is intended to improve viewpoint diversity and restore trust in the national news media.
It's important to note that no explicit commitments about local news investment were reported in the available information.
The trio of co-CEOs at Paramount are eligible for stepped-up severance payments in the event of a sale or merger. Paramount added a provision to their employment agreements that allows the co-CEOs to quit and receive severance benefits if they are demoted.
Shari Redstone is set to receive $1.75 billion in cash upon closing of the Skydance deal and will exit the merged company's board. The new company, Paramount Skydance Corp., will be led by chairman and CEO David Ellison, with Jeff Shell as president. Skydance's top lawyer did not immediately respond to a request for comment.
The deal's approval comes amidst allegations by Sen. Elizabeth Warren and others that the settlement was a quid-pro-quo to secure the Trump administration's approval of Paramount-Skydance. However, these allegations have not been substantiated.
Trump had been demanding an absurd $20 billion in damages from Paramount, significantly higher than the $16 million settlement. Paramount Global declined to comment on the FCC's approval.
- In the FCC approval process for the Paramount-Skydance merger, Paramount made a commitment to eliminate existing diversity, equity, and inclusion (DEI) policies as part of Skydance's pledge not to have DEI programs after the takeover.
- The new company, Paramount Skydance Corp., is expected to pursues a diverse range of political and ideological viewpoints in its programming to address concerns of perceived bias and restore trust in the national news media.
