The Federal Communications Commission (FCC) has given the green light for the $8 billion merger between Paramount Global and David Ellison’s Skydance Media. This approval paves the way for the transfer of licenses for 28 CBS-owned local TV stations to the Skydance-led ownership group, marking the final regulatory hurdle for the merger. The deal is expected to close in the coming weeks now that all obstacles have been cleared.
The FCC vote was split 2-1, with Commissioner Anna Gomez opposing the deal. Gomez expressed concerns over Paramount’s settlement with President Trump and other concessions made as part of the merger. Despite her dissent, the approval was granted, with Skydance making commitments to the FCC in areas such as diversity, equity, and inclusion programs, as well as investing in local news and community service.
FCC Chairman Brendan Carr, appointed by Trump, has been vocal in pushing for changes in the media landscape, particularly in terms of diversity and bias. Skydance’s commitments to address these issues were seen as a positive step by Carr and the FCC. The approval also comes after Paramount agreed to settle a lawsuit with President Trump over a “60 Minutes” interview with Kamala Harris.
Under the terms of the merger, Skydance will merge with Paramount to become “Paramount Skydance Corp.” The new company will be publicly traded and led by David Ellison as chairman and CEO, with Jeff Shell as president. Shari Redstone, of National Amusements Inc., will receive $1.75 billion in cash upon closing of the deal and will exit the merged company’s board.
As the deal awaited FCC approval, Paramount underwent several rounds of layoffs in an effort to cut costs. The current co-CEOs of Paramount, George Cheeks, Chris McCarthy, and Brian Robbins, are eligible for increased severance payments in the event of a sale or merger. These executives will receive severance packages if they are terminated within two years of the transaction or if they choose to resign due to demotion.
In conclusion, the FCC approval of the Paramount Global and Skydance Media merger sets the stage for a new era in the entertainment industry. The integration of these two powerhouse companies is expected to bring about significant changes in the media landscape, with a focus on diversity, equity, and inclusion. The impact of this merger will be closely watched as the newly formed Paramount Skydance Corp. takes its place in the market.
