The entertainment company Paramount Global is set to finalize its monumental $8 billion merger agreement with Skydance Media on August 7, 2024. This crucial date comes just two weeks after the administration of President Donald Trump granted its approval, marking a significant moment in the media landscape of the United States. On Friday, the two companies announced the completion of the final stage of this yearlong deal, which was initially disclosed in July 2024.
This merger represents a seismic shift in the entertainment sector, effectively bringing an end to the long-standing influence of the Redstone family over the Paramount entertainment empire. However, the merger has recently attracted heightened attention due to its political implications. On Thursday, the Federal Communications Commission (FCC) approved the merger after a series of moves by Paramount that were interpreted as concessions to the Trump administration.
The FCC operates as an independent agency of the federal government, but since taking office for his second term in January, President Trump has exerted efforts to influence such agencies by appointing loyal allies. This political backdrop raised questions about the future of the Paramount-Skydance merger, particularly in light of Trump's contentious relationship with CBS Broadcasting Inc, one of Paramount’s flagship properties.
Trump's adversarial stance towards the news media, including CBS’s flagship news programs, has been well-documented. This tension escalated during the final weeks of the 2024 presidential election when Trump faced Democratic contender Kamala Harris. The renowned TV news magazine, 60 Minutes, traditionally interviews major party nominees ahead of elections and had invited both Trump and Harris to participate. While Harris accepted, Trump controversially canceled his scheduled interview.
Following the airing of two different cuts of Harris’s interview, Trump accused CBS of deceptive reporting tactics and subsequently filed a lawsuit against Paramount, CBS's parent company. His court filing claimed that CBS had blurred the lines between responsible reporting and manipulative journalism. In response, 60 Minutes defended its editorial choices, stating, “When we edit any interview, we strive to be clear, accurate and on point.”
Despite expectations that Paramount would win the case, the company opted for a strategic resolution, agreeing to pay Trump $16 million to support his future presidential library. Shortly after this settlement, CBS’s popular show, The Late Show with Stephen Colbert, was unexpectedly canceled, a move that many speculated was an attempt to appease Trump and facilitate the merger. Colbert, known for his critiques of Trump, had consistently drawn high ratings.
Trump expressed satisfaction with the cancellation of Colbert’s show on his social media platform, Truth Social, stating, “I absolutely love that Colbert got fired.” He further confirmed the receipt of the $16 million settlement, indicating expectations for additional benefits from the new ownership.
As the FCC approved the merger, David Ellison, the founder of Skydance and son of Oracle Corporation CEO Larry Ellison, is poised to lead operations. Trump’s appointee at the FCC, Brendan Carr, stated that the merger would lead to significant changes in CBS's news programming. He emphasized the need for a diverse range of viewpoints, asserting that “Americans no longer trust the legacy national news media.”
Despite the merger's approval, scrutiny over Trump continues on Paramount's platforms. Shortly after the FCC's green light, the animated series South Park aired an episode that satirized Trump and the $16 million settlement. In a notable scene, an animated character warns about the consequences of the merger, indicating that the political landscape remains highly charged.
This merger between Paramount Global and Skydance Media is not just a business transaction; it is a pivotal moment that intertwines entertainment, politics, and media influence in the United States, setting the stage for future developments in the industry.
