Paramount and Skydance merger finally gets final FCC approval
Paramount and Skydance merger finally gets final FCC approval
The regulating body has signed off on the merger after a pledge by Skydance not to introduce any DEI inintiatives.
One of the most enduring stories in media appears to be about to come to a close. The Paramount Global merger with Skydance Media is now nearly complete, as Thursday, the Federal Communications Commission finally signed off on Skydance’s acquisition of the media company. Now, following a process viewed by many as highly influenced by political matters, Paramount and Skydance can finally consummate a deal agreed to over a year ago.
Key Details:
- Trump’s way?: The Paramount/Skydance deal closed only after the companies appeared to make concessions to the president.
- Billions on the line: The $8 billion deal has received criticism for enriching Paramount’s controlling shareholder unduly.
- Paramount+ changes: Oncoming Paramount executives have pledged big changes to the company’s streamer.
The FCC’s approval of the merger was significantly more challenging to obtain than the SEC’s approval, which was granted in February thestreamable.com/paramount-skydance-merger-sec-approval-lawsuits-trump. Paramount did not get the FCC’s nod to merge with Skydance until it settled a lawsuit with President Donald Trump over a 2024 “60 Minutes” interview with former Vice President Kamala Harris, and recently, the company canceled the late-night show of Stephen Colbert, who has long been highly critical of the president.
The sole Democratic commissioner on the three-person FCC panel dissented to the merger, expressing disapproval about perceived political complications throughout the process.
“The Paramount payout and this reckless approval have emboldened those who believe the government can — and should-abuse its power to extract financial and ideological concessions, demand favored treatment, and secure positive media coverage,” Commissioner Anna Gomez wrote.
FCC chairman Brendan Carr gave his own thoughts on the approval of the deal, as well.
“Americans no longer trust the legacy national news media to report fully, accurately, and fairly,” Carr said. “It is time for a change. That is why I welcome Skydance’s commitment to make significant changes at the once storied CBS broadcast network.”
As part of the deal, Skydance pledged not to introduce any further diversity, equality, and inclusion (DEI) initiatives at the new company. Those optics should give critics of the deal even more ammunition, which has not been in short supply. The merger faces several lawsuits from pension funds around the country, who accuse current Paramount controlling shareholder Shari Redstone of making a tidy profit for herself, while giving insufficient consideration to other investors.
Now that the deal can move forward, however, there could be big changes for Paramount+. New incoming executives Larry Ellison and Jeff Shell have promised to make alterations to the streamer, including shifting windows for its content, as well as redesigning the service’s user interface.
What are your thoughts on the clearing of the biggest hurdle remaining in the Paramount and Skydance merger? Are you excited for the future of Paramount+ and the company’s cable channels? Are you tired of hearing headlines about the story? Let us know in the comments below!
Paramount Plus
Paramount+ is a subscription video streaming service that includes on-demand access to 40,000+ TV show episodes from BET, CBS, Comedy Central, MTV, Nickelodeon, Nick Jr., and more. Get free access with a Walmart+ subscription.
Paramount+ includes “1883,” “Tulsa King,” “Star Trek: Discovery,” “SpongeBob SquarePants,” and “PAW Patrol.” Subscribers can watch the NFL, college football, The Masters, college basketball, UEFA Champions League, UEFA Europa League, Serie A, and NWSL. The service also offers the option to watch your live CBS affiliate. The upgraded ad-free package includes premium movies and shows from Showtime.