FCC Approves $8.4B Paramount-Skydance Merger Amid Political Controversy

The U.S. Federal Communications Commission (FCC) has approved the $8.4 billion merger between Paramount Global and Skydance Media, transferring broadcast licenses for 28 CBS-owned stations to the new entity. The deal follows Paramount’s $16 million settlement of a lawsuit filed by President Donald Trump over a 2020 “60 Minutes” interview with former Vice President Kamala Harris.

FCC Chairman Brendan Carr emphasized the approval was independent of the lawsuit, highlighting Skydance’s pledge to ensure “diverse political and ideological viewpoints” and to appoint an ombudsman to review complaints of editorial bias. Skydance, backed by RedBird Capital, plans to inject $1.5 billion into Paramount to strengthen operations, particularly local news.

As part of the transaction, Paramount eliminated its diversity, equity, and inclusion (DEI) programs to align with the Trump administration’s stance against affirmative action, a move Carr praised as eliminating “invidious forms of DEI discrimination.”

The FCC’s 2-1 vote drew sharp criticism from Democratic Commissioner Anna Gomez, who called the decision an erosion of press freedom and an unprecedented intervention in newsroom editorial independence. Senators Edward Markey and Ben Ray Luján also condemned the merger as “corruption” tied to Paramount’s legal settlement with Trump.

Investors reacted positively, with Paramount shares rising about 2% in after-hours trading. Skydance CEO David Ellison, son of Oracle co-founder Larry Ellison, will lead the merged company, with former NBCUniversal chief Jeff Shell as president. The merger marks the end of an era for the Redstone family, whose media empire spanned film, broadcast, and cable before declining amid the streaming revolution.

The deal concludes a 250-day review process, exceeding the FCC’s typical 180-day target for merger reviews.