Paramount and Skydance merger extended with FCC review stalled
Paramount and Skydance merger extended with FCC review stalled
Political considerations have put a halt to the merger for now, but the two sides built a 90-day cushion into their agreement.
The merger between Paramount Global and Skydance Media has not gone as smoothly as the two companies would have liked. A messy purchase process, multiple lawsuits, and other stumbling blocks have disrupted the process at various points, but the firms have at least built in a buffer to ensure they have enough time to finish the deal. A 90-day extension of the merger kicked in on Tuesday, allowing for more time to get the transaction finalized.
Key Details:
- The merger was originally due to be completed by the first half of 2025.
- FCC approval of the deal is moving forward slowly thanks to political considerations.
- The merger was recently allowed to move forward by a judge amidst a legal challenge.
The extension took effect on Monday without requiring action from either party. Under the terms of the merger agreement signed in summer 2024, the extension took hold “if the consummation of the transactions does not occur before April 7, 2025, subject to two automatic extensions of 90 days.” The agreement adds that the extension can only be granted if regulatory reviews have not yet been completed.
The union of Paramount and Skydance was originally set to be finished by the first half of 2025, and the Securities and Exchange Commission has already signed off on the deal, as has the European Commission. However, approval from the Federal Communications Commission (FCC) has not been forthcoming.
FCC chairman Brendan Carr said in early March that the body hadn’t really begun digging into the transaction, and President Trump’s ire directed at CBS News over what he says was an unfairly edited “60 Minutes” interview with former Vice President Kamala Harris is likely slowing the process down.
The merger also faces considerable resistance from Paramount investors. One lawsuit brought by several public employee pension funds in New York City sought to pause the merger while they advanced their case, but the judge ruled last month that the transaction could go forward while they made their arguments as to why it should be dismissed altogether.
Paramount and Skydance had originally hoped to finalize the merger before summer set in. However, now it looks less likely that it will happen, but at the very least, they’ve given themselves more breathing room to cross the finish line.
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