FCC Approves Paramount-Skydance Merger

The Federal Communications Commission has approved the $8.4 billion merger between Paramount Global and Skydance Media, clearing the final regulatory hurdle for the deal. This merger will give Skydance control over CBS, Paramount Pictures, the Paramount+ streaming platform, and several cable channels including MTV, Nickelodeon, and Comedy Central.

Skydance CEO David Ellison, son of billionaire Larry Ellison, expressed excitement over the approval and mentioned plans to finalize the deal early in August. The FCC’s decision, made by a 2-1 vote, was supported by assurances from Ellison and partner RedBird Capital to uphold journalistic impartiality. As part of the agreement, Skydance will appoint an ombudsman to oversee concerns about media bias.

Previously, Paramount had settled a $16 million lawsuit from Donald Trump related to a 60 Minutes interview with Kamala Harris. Trump accused the interview of being manipulated to harm his 2024 campaign, but CBS denied wrongdoing and settled to avoid delaying the merger. Trump later claimed the settlement cost $36 million and included funding for pro-MAGA advertisements.

Paramount’s controlling shareholder, media heiress Shari Redstone, will receive $1.75 billion upon closing and will exit the company’s board. The merger includes plans for Skydance and RedBird Capital to acquire Redstone’s shares in National Amusements, Paramount’s majority owner. Post-merger, Skydance will merge with Paramount as “Paramount Skydance Corp.,” controlled by the Ellison family but remaining publicly traded. David Ellison will serve as chairman and CEO, with former NBCUniversal CEO Jeff Shell as president.

The approval comes shortly after CBS canceled “The Late Show with Stephen Colbert,” citing financial reasons, as the show had been losing significant revenue.