The proposed $8 billion merger between Paramount Global and Skydance Media has received approval from the U.S. Federal Communications Commission (FCC).
The agreement, uniting the independent film studio with one of Hollywood’s oldest and most prominent media companies, was initially announced in 2024.
The FCC’s approval comes shortly after Paramount Global reached a $16 million settlement in a legal dispute with former U.S. President Donald Trump. The dispute stemmed from an interview broadcast on CBS, a Paramount subsidiary, featuring then-Vice President Kamala Harris.
The settlement did not include any admission of wrongdoing or apology from Paramount.
FCC Chairman Brendan Carr, an appointee of the former president, announced the merger’s approval on Thursday, expressing his support for Skydance’s plans to implement “significant changes” at CBS.
Both companies stated on Friday that they anticipate the merger to be finalized on August 7.
The FCC has agreed to transfer broadcast licenses for 28 CBS-owned television stations to the new ownership.
“Americans have increasingly lost trust in legacy national news media to deliver comprehensive, accurate, and fair reporting,” Mr. Carr stated. “It is time for a change.”
Mr. Carr noted that Skydance has made commitments to the agency, including a “dedication to unbiased journalism.” As part of this commitment, the merged company will appoint an ombudsman to address bias complaints.
Skydance has also pledged to discontinue diversity, equity, and inclusion initiatives, aligning with policies previously targeted by the Trump administration.
The FCC approved the deal by a 2-1 vote, with Commissioner Anna Gomez, a Democrat, dissenting.
“After months of cowardly capitulation to this administration, Paramount finally got what it wanted. Unfortunately, it is the American public who will ultimately pay the price for its actions,” she wrote.
Paramount Global’s roots trace back to the founding of Paramount Pictures Corporation in 1914. The studio is responsible for producing numerous iconic films, including The Godfather, the Star Trek franchise, and the Mission: Impossible series.
Paramount’s portfolio includes the Paramount+ streaming service, as well as Paramount Pictures, CBS, Nickelodeon, BET, MTV, Comedy Central, and other media properties.
However, the entertainment conglomerate has faced challenges in recent years.
Skydance is owned by David Ellison, son of Oracle founder Larry Ellison.
The FCC’s approval was a necessary step for the merger to proceed.
The agreement, encompassing CBS, Paramount Pictures, and Comedy Central, was greenlit following a series of actions by Paramount, including the settlement of the lawsuit filed by Mr. Trump.
According to reports in both The Wall Street Journal and The New York Times, the settlement regarding the 60 Minutes interview was reached with the assistance of a mediator, in part to avoid any potential impact on the planned merger. The FCC was reviewing the merger, giving the former president the authority to potentially impede the deal.
Mr. Trump had alleged that the network deceptively edited an interview with then-Vice President Kamala Harris that aired on its 60 Minutes program, aiming to “tip the scales in favor of the Democratic party.”
Paramount stated that the settlement funds would be allocated to Mr. Trump’s future presidential library, rather than being paid to him “directly or indirectly.”
The approval also comes shortly after CBS, owned by Paramount, announced the cancellation of The Late Show with Stephen Colbert, a program known for its criticism of Mr. Trump.
The network cited “purely a financial decision against a challenging backdrop in late night [television]” as the reason for the show’s cancellation, emphasizing that it “is not related in any way to the show’s performance, content or other matters.”
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