Merger of Paramount and Skydance officially closed on August 7, with approval secured
Paramount Global and Skydance Media Merger Receives Final Approval
In a significant development for the entertainment industry, the merger between Paramount Global (NASDAQ: PARA) and Skydance Media has received government approval from the Federal Communications Commission (FCC) [1][2][3]. The transaction, valued at around $8 billion, is set to officially close on August 7, 2025, creating a new combined entity known as "Paramount Skydance Corporation," valued at approximately $28 billion [2][4].
The Road to Approval
The approval process was not without its challenges. The merger had experienced delays through the first half of 2025, one of which was due to a lawsuit filed by former President Trump against Paramount's CBS network [4]. However, the lawsuit was settled with CBS paying $16M towards a future Trump Presidential Library [4].
Key Dates and Deadlines
With the FCC approval, the merger news brings more clarity to the election deadlines for Paramount holders. Paramount common stock holders need to indicate their merger election by 5 p.m. ET on July 31 [5]. Shares held by current or former Paramount employees in their Morgan Stanley Stock Plan have an earlier deadline of 4 p.m. ET on July 28 [5]. Shares held via Paramount Global's 401(k) also have the same deadline [6].
The Combined Entity
After closing, Skydance CEO David Ellison will become chairman and CEO of the combined company, with Paramount's Jeff Shell serving as president [2]. The merger brings together Paramount’s broad media portfolio, including Paramount+, CBS, MTV, Nickelodeon, and more, with Skydance’s film and television production capabilities [1][2]. This union could potentially strengthen competitiveness in the crowded entertainment market.
Industry Reaction
The merger has elicited mixed reactions from the industry. Some creatives and producers have voiced concerns about media consolidation reducing diversity and opportunities, as well as fewer studios producing content [2]. However, key industry figures like Mark Wahlberg have called it a "win for the industry," and some creatives support David Ellison’s leadership [2].
Looking Ahead
The combined company’s impact could reshape content production and competition, with ongoing debate around consolidation effects in Hollywood [1][2][3][4]. As we move towards the closing date, the focus shifts to the integration of the two companies and the potential synergies they can create.
[1] CNBC (2025). Paramount Global and Skydance Media merger gets FCC approval. Retrieved from https://www.cnbc.com/2025/07/25/paramount-global-skydance-media-merger-gets-fcc-approval.html
[2] Variety (2025). Paramount Global and Skydance Media Merger: What You Need to Know. Retrieved from https://variety.com/2025/biz/news/paramount-global-skydance-media-merger-1235376289/
[3] Deadline (2025). Paramount Global-Skydance Merger Gets FCC Approval. Retrieved from https://deadline.com/2025/07/paramount-global-skydance-merger-fcc-approval-1235371172/
[4] The Hollywood Reporter (2025). Paramount Global-Skydance Merger: What Happened to the Trump Lawsuit? Retrieved from https://www.hollywoodreporter.com/business/business-news/paramount-global-skydance-merger-trump-lawsuit-1235372119/
[5] Paramount Global (2025). Merger Election Procedures. Retrieved from https://www.paramount.com/investor-relations/merger-election-procedures
[6] Paramount Global (2025). Frequently Asked Questions About the Proposed Merger. Retrieved from https://www.paramount.com/investor-relations/faqs-proposed-merger
The immediate effect of the government's approval of the merger between Paramount Global and Skydance Media is bringing more clarity to the election deadlines for Paramount common stock holders. Creatives and producers in the industry have voiced concerns about the potential consolidation of media companies, as it may reduce diversity and opportunities, but key figures like Mark Wahlberg view the merger as a win for the industry.
