FCC Approves Paramount-Skydance Merger, Sparking Controversy

The Federal Communications Commission has given the green light for Paramount Global to finalize its merger with Skydance Media. The FCC announced its approval on Thursday, removing the final obstacle for the media and entertainment companies to complete their transaction. Paramount is the parent company of CBS.

FCC Chair Brendan Carr expressed concerns about the public's trust in traditional news media. He welcomed Skydance's commitment to making significant changes at CBS, referencing their plan to appoint a CBS News ombudsman to address complaints of editorial bias for at least two years. Skydance also confirmed they would not implement DEI initiatives.

Carr highlighted Skydance's written commitments to ensure diverse viewpoints in the new company's news and entertainment programming, aiming for fair, unbiased, and fact-based reporting from CBS. He also noted the company's dedication to local news coverage, stating Skydance would collaborate with its affiliated broadcast stations to strengthen their ability to serve local communities.

The FCC's approval was crucial for the merger to proceed, concluding a lengthy corporate saga surrounding Paramount. Paramount owns various media properties, including Paramount+, Paramount Pictures, the CBS television network, CBS News and Stations, Nickelodeon, BET, MTV, and Comedy Central.

Paramount Global agreed to merge with David Ellison's Skydance Media in July 2024, following a period of halted negotiations. The deal emerged after a prolonged sales process that attracted interest from several major corporate players and investors.

Paramount had initially anticipated closing the $8.4 billion merger in the first half of 2025. However, the merger remained under FCC review, led by Chair Brendan Carr.

On July 1, Paramount settled a lawsuit with Mr. Trump regarding the editing of a "60 Minutes" interview. The company agreed to pay $16 million, with the majority going to Mr. Trump's presidential library, and to publish transcripts of future "60 Minutes" interviews with presidential candidates. Mr. Trump has since indicated he expects the new owners of Paramount to offer him advertising and PSAs. Paramount stated it had no knowledge of commitments to Mr. Trump beyond the settlement, and Skydance did not respond to requests for comment.

FCC Commissioner Anna Gomez, the sole Democrat on the panel, dissented from the decision to approve the merger. She cited the payout and other concessions made by Paramount to settle the lawsuit as concerning. Gomez criticized the FCC's involvement in pressuring Paramount to reach a private legal settlement, which she believes further erodes press freedom. Carr has stated that Mr. Trump's lawsuit did not influence the agency's review of the deal.