Federal regulators have given their approval for Paramount’s $8 billion merger with Skydance, clearing the path for the deal that blends Hollywood glamour with political drama. The Federal Communications Commission (FCC) gave its green light after months of tension surrounding President Donald Trump’s legal battle with “60 Minutes,” a flagship program on CBS, which is owned by Paramount.
Concerns that the Trump administration might block the deal prompted Paramount to settle with Trump earlier this month, agreeing to pay $16 million. Critics condemned this settlement as a disguised bribe aimed at appeasing the president and raised worries about the independence of editorial content at CBS. Controversy grew when CBS announced the cancellation of Stephen Colbert’s “Late Show” shortly after Colbert criticized the settlement during his broadcast. While the company cited financial reasons for the cancellation, many inside and outside the organization questioned the true motives.
In a statement upon approving the merger, FCC Chairman Brendan Carr praised the union as an opportunity to restore balance to CBS, which he described as a once-revered institution. Carr highlighted a growing distrust among Americans toward traditional national news media, calling for change.
To secure approval, Skydance assured regulators it would monitor CBS News closely for bias and appoint an ombudsman to review fairness complaints. The company’s general counsel also pledged a thorough review of CBS with plans to implement any necessary changes, emphasizing a commitment to diversity of political and ideological viewpoints.
The FCC approved the merger by a 2-1 vote, with Commissioner Anna Gomez dissenting. Gomez criticized the process, expressing disappointment in how Paramount had capitulated to the Trump administration and warned that the American public would bear the consequences.
Paramount and Skydance aim to finalize the deal by September, with the combined company valued at $28 billion. The investment includes $8 billion from a group led by Skydance founder David Ellison’s family and RedBird Capital.
Ellison emphasized the need to evolve into a “tech hybrid” company to stay competitive, including plans to revamp the Paramount+ streaming service and expand direct-to-consumer offerings, reflecting changes in audience behavior and entertainment consumption.
Ellison, who is set to become CEO of the new Paramount, is the son of Larry Ellison, co-founder of Oracle and a close associate of Trump.
During the merger approval process, Trump’s lawsuit against CBS over a “60 Minutes” interview with his Democratic rival Kamala Harris became a focal point. Trump alleged deceptive editing intended to help Harris, initially demanding $10 billion in damages before increasing the claim to $20 billion, citing mental anguish.
CBS defended its journalism practices, stating the editing was standard for TV news and denying Trump’s allegations. However, rumors of behind-the-scenes negotiations for a settlement surfaced, especially after FCC Chair Carr, appointed by Trump, launched an investigation earlier in the year.
By July, Paramount agreed to the $16 million settlement, which was directed toward Trump’s future presidential library and legal costs. Paramount maintained it did not apologize or express regret for the interview.
The settlement sparked outrage among critics who accused Paramount of undermining journalistic integrity to secure the merger. Senator Elizabeth Warren called for an investigation, warning the deal could be viewed as a blatant bribe and advocating for stricter rules on donations to presidential libraries.
Concerns about editorial independence at CBS had been mounting even before the merger announcement. Paramount’s increasing oversight of “60 Minutes” and internal frustrations among journalists contributed to an atmosphere of unease.
In April, Bill Owens, then-executive producer of “60 Minutes,” resigned, citing a loss of editorial control. In May, CBS News CEO Wendy McMahon stepped down amid speculation surrounding the Trump settlement. Tanya Simon was later promoted to lead “60 Minutes,” a move aimed at stabilizing the program ahead of expected changes under Ellison’s leadership.
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