FCC Approves $8 Billion Skydance-Paramount Merger
The United States Federal Communications Commission (FCC) has approved the $8 billion merger between Skydance Media and Paramount Global, clearing the way for one of the most consequential shake-ups in the U.S. media industry in recent years.
The green light, announced on Thursday by FCC Commissioner Brendan Carr, includes the transfer of broadcast licenses for 28 CBS-owned stations to the new Skydance-led entity. While no official completion date was provided by Paramount, the merger is now expected to close in the near future.
First announced in 2024, the merger brings together Skydance, the independent studio founded by David Ellison, and Paramount Global, the century-old media giant behind Paramount Pictures, CBS, Nickelodeon, MTV, BET, Comedy Central, and streaming platform Paramount+.
Carr, a Trump-appointed commissioner, endorsed the deal, citing Skydance’s pledge to overhaul CBS operations and address concerns about political bias in news reporting. “It is time for a change,” Carr said, adding that the new leadership had committed to “unbiased journalism” and would install an ombudsman to handle public complaints of bias.
Skydance has also agreed to discontinue existing diversity, equity, and inclusion (DEI) programmes across the CBS network – a move that aligns with recent policy positions of the Trump administration.
However, the merger did not pass without opposition. Democratic FCC Commissioner Anna Gomez dissented, criticising what she called “cowardly capitulation” to political pressures. “Paramount finally got what it wanted,” she wrote, “but the American public will ultimately pay the price.”
The political undertone of the merger intensified after Paramount reached a $16 million settlement with U.S. President Donald Trump. The lawsuit stemmed from a 60 Minutes interview with Vice President Kamala Harris aired by CBS, which Trump alleged was misleadingly edited to damage his re-election prospects. The agreement – brokered via mediation – allowed the funds to be directed toward Trump’s planned presidential library, avoiding any direct or indirect personal payout.
Insiders from both The Wall Street Journal and The New York Times report that resolving the lawsuit was seen as crucial to avoiding complications with FCC approval, given Trump’s influence over the commission’s review process.
Just days before the FCC announcement, CBS revealed it would be ending The Late Show with Stephen Colbert, one of its most prominent programmes and a frequent source of political satire targeting Trump. The network cited financial pressures in the late-night TV space and denied any connection between the show’s cancellation and the merger or ongoing political tensions.
The merger marks a new chapter for Paramount, a company whose roots date back to 1914 but which has faced mounting financial and audience challenges in the streaming age. For Skydance, it’s an opportunity to lead one of the industry’s most storied brands into a new era – albeit one that arrives with scrutiny, promises of transformation, and no shortage of controversy.
