Skydance deal approved as tumultuous times at Paramount continue
The US Federal Communications Commission (FCC) has approved the $8.4bn merger between Paramount Global and Skydance Media, just weeks after Paramount settled a lawsuit from Donald Trump against CBS.
This could mark the beginning of the end to a challenging period since merger talks began in December 2023.
Approval means David Ellison’s Skydance will now be combined with Paramount, owner of CBS, Paramount Pictures and a number of cable channels including MTV. The Financial Times reported that the deal is expected to close within weeks.
However, the timing of the settlement and now FCC merger approval has attracted controversy, with the fate of The Late Show with Stephen Colbert and the new series of South Park indicating disagreement over Paramount’s decision-making.
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Analysis: Controversial timing
Paramount’s settlement marks the latest concession by a US media company to the president, who has targeted outlets depicting what he believes to be “fake news”.
Trump had alleged that an episode of CBS’s 60 Minutes news programme was deliberately misleading as it was edited more favourably to then vice-president Kamala Harris.
The furore had resulted in a number of resignations, the most high-profile of which was CBS News president and CEO Wendy McMahon.
At the start of July, Paramount agreed to pay $16m to settle the lawsuit, despite lawyers initially calling the case “meritless” and accusing Trump of attempting to evade first amendment principles of free speech.
Before the month is out, the FCC has approved the merger, which had been under review by FCC chair Brendan Carr for several months.
Carr has openly aligned himself with Trump’s mission to challenge mainstream media, stating in an interview with Fox News on Thursday: “We need a course correction.”
He added that the merger was approved after Skydance committed to ensuring programming would reflect a range of political and ideological views.
It is also believed that, as one of its concessions to gain approval, Skydance had agreed to end DEI policies — an issue that the Trump administration has frequently targeted.
However, Carr has denied suggestions that the lawsuit influenced his decision over the approval.
Insider reactions
There have been clear protestations. Colbert, a strong critic of the Trump administration, called Paramount’s settlement “a big fat bribe” soon after it was confirmed.
Days later, his show was cancelled, with Paramount citing financial reasons for the decision.
Paramount itself has noted that the settlement does not include a statement of apology or regret, and the funds will be allocated to Trump’s future presidential library, not paid to him “directly or indirectly”.
Contempt from South Park‘s creators, Matt Stone and Trey Parker, was also clear, with the 27th series’ premiere taking aim at the president and Paramount, parent of Comedy Central, which broadcasts the animated show.
The episode covered topics including the lawsuit, the cancellation of The Late Show…, wokeness and Trump’s attacks on Canada.
Whether anything will happen to the show remains to be seen. Just a day before the FCC approval, Paramount announced that it had signed a five-year licensing deal with South Park for Comedy Central and Paramount+ globally.
Meanwhile, there is expected to be movement at the top. Chris McCarthy, one of three co-CEOs of Paramount who is also president of Showtime and MTV Entertainment, is expected to depart from the company once the acquisition completes.
McCarthy has served as part of the “office of the CEO” alongside George Cheeks, president of CBS, and Brian Robbins, president of Paramount Pictures and Nickelodeon, since April 2024.
Robbins is also expected to exit the company, while Cheeks will remain following the merger.
Where it began
Paramount and Skydance agreed to merge in April 2024.
The negotiations were not without their ups and downs, with Shari Redstone, long-standing owner of Paramount, reportedly reviewing other bids last summer before the potential merger with Ellison.
Ellison’s vision is to form a “next-generation media and technology leader” that focuses on enhancing Paramount’s premier content platform, technology and infrastructure, while retaining its linear networks and direct-to-consumer streaming channels.
In the UK, Paramount operates 5, which was officially rebranded from Channel 5 earlier this year.
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