Federal Communications Commission gives $8 billion Skydance-Paramount takeover the green light
Paramount Global and Skydance Media Merger Approved by FCC
The United States Federal Communications Commission (FCC) has given the green light for the $8 billion merger between Paramount Global and Skydance Media. The deal, which was first announced in 2024, is expected to close on August 7, 2025.
The merger comes amidst rising competition in the entertainment industry and Paramount's financial struggles, including rising debt. The new entity, named "Paramount Skydance Corporation," is expected to have a combined valuation of around $28 billion.
FCC head Brendan Carr announced the approval on Thursday, stating that he welcomed Skydance's ideas to make "significant changes" at CBS. The settlement over a controversial interview broadcast on 60 Minutes with former U.S. President Donald Trump did not affect the planned merger, which the FCC was reviewing.
The interview in question saw Trump alleging that the network had deceptively edited the interview to "tip the scales in favor of the Democratic party." Trump and Paramount Global agreed to a settlement to pay $16 million to settle the legal dispute, with the money allocated to Trump's future presidential library, not paid to him "directly or indirectly."
The merger represents a strategic consolidation in the entertainment media landscape, combining iconic brands like CBS, MTV Networks, and Paramount Pictures under new leadership led by the Ellison family. Skydance has made a commitment to unbiased journalism, promising to install an ombudsman to evaluate complaints of bias.
The merger is expected to reshape the industry structure, streamline costs, and bolster streaming growth under new leadership. Paramount+, the streaming service owned by Paramount Global, already has nearly 79 million subscribers, boosted by NFL programming and other original content. The company aims for profitability in U.S. streaming sooner than many peers.
The industry response has been mixed, with some creatives fearing content reduction, while others see the merger as beneficial for industry diversity and opportunity. Notably, the network announced it would end The Late Show with Stephen Colbert, who has been critical of Trump.
The merger could face further hurdles, as one commissioner, Anna Gomez, a Democrat, dissented from the FCC's 2-1 approval vote. The approval comes at a time when Americans no longer trust the legacy national news media to report fully, accurately, and fairly, according to Carr.
Paramount Global traces its origins back to the founding of Paramount Pictures Corporation in 1914. Skydance is owned by David Ellison, the son of Larry Ellison, who founded US technology giant Oracle. The network said the move to end The Late Show is purely a financial decision against a challenging backdrop in late-night television and is not related to the show's performance, content, or other matters.
The merger is significant given the increasing regulatory scrutiny of media mergers and the FCC's green light clears a major hurdle towards the merger’s completion. The deal is expected to close soon, but Paramount did not provide an expected completion date when asked by the BBC.
- The merger between Paramount Global and Skydance Media, a move that represents a strategic consolidation in the entertainment media landscape, is expected to reshape the industry structure and bolster streaming growth.
- The new entity, named "Paramount Skydance Corporation," is expected to have a combined valuation of around $28 billion, with Paramount+, the streaming service owned by Paramount Global, already having nearly 79 million subscribers.
- While the merger is significant, it faces the potential for further hurdles, as one commissioner, Anna Gomez, a Democrat, dissented from the FCC's 2-1 approval vote, indicating possible opposition.
- In an effort to ensure unbiased journalism, Skydance has made a commitment to install an ombudsman to evaluate complaints of bias, addressing concerns from some creatives who fear content reduction.
