Federal regulators have granted approval to Skydance Media’s $8 billion acquisition of Paramount Global, finally removing the last major barrier to a merger first announced in July 2024.
The Federal Communications Commission (FCC) voted 2–1 in favour of the deal on July 24, 2025, paving the way for the creation of a rebranded entity known as Paramount Skydance Corporation with a collective valuation of approximately $28 billion.
Skydance leader David Ellison is set to become chairman and CEO, positioning the company to modernize Paramount+ and bolster direct-to-consumer content offerings across film, TV, and broadcast platforms.
The decision followed a contentious year‑long review process involving political pressure and internal corporate upheaval. Paramount settled a high‑profile lawsuit brought by former President Donald Trump over a “60 Minutes” interview with then Vice President Kamala Harris, paying $16 million to Trump’s future presidential library.
Critics accused the settlement of functioning as a quid pro quo to smooth regulatory approval. Shortly thereafter, CBS canceled “The Late Show with Stephen Colbert,” one of Trump’s vocal critics, raising further questions over editorial independence.
FCC Chairman Brendan Carr welcomed the merger, asserting it presented an opportunity to restore credibility to CBS by ensuring more balanced journalism.
He highlighted Skydance’s commitments to promote a diversity of viewpoints across the political spectrum, appoint an independent ombudsman to monitor bias for at least two years and discontinue diversity, equity and inclusion (DEI) programs at CBS and Paramount aligning with a broader administrative agenda. Carr positioned the agreement as “another step forward” for mainstream media reform
In dissent, FCC Commissioner Anna Gomez sharply criticized the move, warning that it represented a surrender to political influence and undermined freedom of the press.
Gomez pointed to what she described as the FCC’s “cowardly capitulation” and expressed concern that the public would pay the price for decisions driven by ideological coercion rather than journalistic integrity.
With the final approval secured, Paramount and Skydance are expected to conclude the merger in the coming weeks, with Shari Redstone departing the company’s board and National Amusements selling its controlling stake to Skydance.
The transaction includes the transfer of licenses for 28 CBS-owned television stations. As part of the closing structure, Skydance investors will pay $2.4 billion in cash for National Amusements, Paramount will distribute another $4.5 billion to shareholders, and inject $1.5 billion in primary capital into the merged company.
Supporters argue the merger gives Paramount the financial uplift it needs to compete effectively in a streaming-dominated media environment, while critics warn it sets a dangerous precedent of political leverage dictating media ownership and editorial policy.
The deal has already triggered a 1.4 percent boost in Paramount’s share price. As Skydance assumes control, industry observers are closely watching how the company will navigate content strategy, press freedom debates, and the future of CBS News under its oversight.
Written By Ian Maleve
