Paramount, FCC make some progress in merger talks
Paramount, FCC make some progress in merger talks
The FCC is holding up Paramount’s merger with Skydance, but there could be some movement on the horizon.
Things may be moving in the right direction for Paramount in its merger with Skydance Media. Intransigence from the Federal Communications Commission (FCC) has held up the deal, likely driven by political issues between President Trump and Paramount’s broadcast channel CBS. But according to a new report from The Wall Street Journal, relations between the FCC and Paramount could be showing a slight thaw.
Key Details:
- Bye-bye DEI: Paramount is discussing foregoing diversity initiatives to try to jumpstart talks with the FCC.
- Jurisdiction: The FCC has a say in the Paramount and Skydance merger thanks to Paramount’s ownership of CBS.
- Other issues: The merger also faces multiple lawsuits from Paramount shareholders.
The Journal reports that the FCC has begun informing Paramount of the initial steps it would have to take to secure the agency’s approval of the Skydance merger.
One commitment Paramount can make to get things moving is to pledge to abstain from corporate diversity initiatives. The Trump administration has continued to focus on attempting to purge these initiatives in as many sectors of the economy as it can, and the FCC has repeatedly urged telecom and media companies to follow this philosophy.
Other thorny issues between Paramount and the administration are outstanding. Trump is in the midst of a $20 billion lawsuit against CBS News, which alleges the network unfairly edited an interview with Vice President Kamala Harris during the 2024 presidential election. However, FCC chairman Brendan Carr has said that the Paramount merger and the lawsuit are being treated as separate processes.
The merger between Paramount and Skydance has already received approval from the Securities and Exchange Commission. But because Paramount owns a broadcast channel in CBS, the FCC also has to sign off on the transaction before it can be completed.
The two companies have extended the deadline to get their merger finished because of the FCC delays, but other issues loom even if they get final approval from the Commission. There are multiple lawsuits against the merger from pension funds in several states and other plaintiffs, each of whom feels the merger deal unfairly enriches Paramount’s controlling shareholder, Shari Redstone, at their expense.
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