On Thursday, the Federal Communications Commission (FCC) officially greenlit the highly scrutinized $8 billion merger between CBS's parent company, Paramount, and Skydance Media. This decision concludes a protracted review process that lasted over 250 days and was characterized by controversy and allegations of political interference. The vote was passed with a narrow margin of 2-1, with Commissioner Anna M. Gomez, who was appointed by the Democrats, opposing the merger.
FCC Chairman Brendan Carr expressed his concerns regarding the current state of American media, stating, “Americans no longer trust the legacy national news media to report fully, accurately, and fairly. It is time for a change.” He welcomed Skydance’s commitment to implement substantial reforms within the once-renowned CBS broadcast network.
In a move aimed at alleviating regulatory concerns, Skydance made several significant concessions that reportedly satisfied Carr. These commitments include a comprehensive review of CBS’s content and the appointment of an ombudsman to address claims of bias within the network. Furthermore, CBS has agreed to suspend its diversity, equity, and inclusion initiatives, aligning with Carr's objectives. “These commitments, if implemented, would enable CBS to operate in the public interest and focus on fair, unbiased, and fact-based coverage,” Carr remarked during a press conference.
During a recent meeting, Skydance’s CEO, David Ellison, reaffirmed his company's dedication to unbiased journalism while emphasizing the importance of diverse viewpoints. He argued that the new ownership group represents a fresh direction that could significantly enhance the company’s standing in the competitive media landscape. It’s worth noting that Ellison's father, Larry Ellison, co-founder of Oracle, has ties to former President Donald Trump.
Commissioner Gomez expressed her dissatisfaction with the merger's approval, claiming that the administration exerted undue pressure on Skydance and Paramount to secure the deal. “After months of cowardly capitulation to this administration, Paramount finally got what it wanted,” she stated, warning that the American public would ultimately bear the consequences of this outcome.
Democratic Senators Edward J. Markey of Massachusetts and Ben Ray Luján of New Mexico echoed Gomez's sentiments, condemning the merger as a blatant example of corruption. They stated, “The stench of this transaction will linger over the Commission for years.”
Earlier this month, Paramount agreed to pay $16 million to settle a lawsuit initiated by then-candidate Trump concerning CBS’s editing of a “60 Minutes” interview featuring Kamala Harris. While Paramount insisted that this settlement was unrelated to the FCC's review, critics viewed it as a strategic move to facilitate merger approval. This settlement was finalized just before the merger's approval, raising additional concerns about the propriety of the overall process.
In a separate but noteworthy development, Paramount announced the cancellation of “The Late Show With Stephen Colbert” shortly after the host criticized the company's payment as a “big fat bribe.” This cancellation has sparked speculation regarding any potential connections to Trump, a topic that FCC Chairman Carr avoided during a Fox News appearance.
Initially announced in July 2024, the merger aims to combine Paramount’s film division, intellectual property, and a variety of television networks—including Comedy Central and Showtime—with Skydance, an independent studio specializing in film, television, and animation. The FCC supports this business strategy, noting that the deal is expected to inject $1.5 billion into Paramount, enhancing its overall operations, particularly in broadcast.
As traditional television networks face increasing challenges due to shifting viewer habits towards social media and streaming platforms, Paramount reported a 6% decline in revenue year-over-year, along with a staggering 19% drop in advertising revenue. Despite these challenges, the company highlighted a growing subscriber base of 79 million for its Paramount+ streaming service.
The successful merger is a significant triumph for Shari Redstone, Paramount’s controlling shareholder, who stands to gain substantially from the transaction. Had the merger fallen through, Redstone would have faced a hefty $400 million breakup fee.
In the immediate aftermath of the merger approval, CBS is likely to undergo considerable cost-cutting measures, as Skydance executives have identified approximately $2 billion in potential savings. However, the future of CBS News remains uncertain, as new leadership will bring changes and some employees worry about a shift in editorial direction.
This instability has already led to the departure of key executives, including “60 Minutes” executive producer Bill Owens and CBS News and Stations CEO Wendy McMahon, both of whom were known to oppose a settlement related to Trump’s lawsuit. A CBS News staff member, who requested anonymity, shared concerns about the transition, stating, “We all know that when the sale happens, that’s not the end; it’s the beginning.”
Veteran correspondent Lesley Stahl expressed hope that Ellison’s leadership would uphold press freedom and maintain the independence of “60 Minutes.” She stated, “I’m expecting that. I’m hoping that. I want that. I’m praying for that. And I have no reason to think that won’t happen.”
