Skydance and Paramount have received approval from the Federal Communications Commission for their $8 billion merger.
The United States Federal Communications Commission (FCC) has approved an $8 billion merger between Paramount Global and Skydance Media, a move that could reshape the media landscape. The decision, made by a 2-1 vote, comes with conditions aimed at safeguarding balanced programming and editorial oversight in the newly combined entity's media brands.
The merger, which includes CBS, Paramount Pictures, Comedy Central, and other media brands, was first announced in 2024. FCC head Brendan Carr welcomed Skydance's ideas to make "significant changes" at CBS, expressing hopes that these changes would address concerns about trust and fairness in legacy national news media.
One of the key conditions set by the FCC is a commitment to ensure future programming exhibits a diversity of viewpoints across the political and ideological spectrum. Skydance has also promised to hire an independent adviser to evaluate complaints of bias in content.
The merger comes just days after CBS, owned by Paramount, announced it would end The Late Show with Stephen Colbert, a move that has been criticized as an attempt to appease former US President Donald Trump, who has been critical of the show's host. Trump had alleged that the network had deceptively edited an interview that aired on its 60 Minutes news program with his presidential election rival Kamala Harris, to "tip the scales in favor of the Democratic party."
The FCC's approval was necessary for the deal to move forward. The deal was approved after a series of moves by Paramount, including settling a lawsuit from Trump. The settlement did not include a statement of apology or regret from Paramount Global. The money allocated to settle the suit was intended for Trump's future presidential library, not paid to him "directly or indirectly."
The FCC's approval also includes the transfer of broadcast licences for 28 owned-and-operated CBS television stations to the new owner. The network said the move "is purely a financial decision against a challenging backdrop in late night television" and "is not related in any way to the show’s performance, content, or other matters."
Skydance, owned by David Ellison, the son of Larry Ellison, who founded US technology giant Oracle, has also promised to end diversity, equity, and inclusion efforts, something the Trump administration has targeted. However, the company has made promises to the FCC, including a "commitment to unbiased journalism" and the installation of an ombudsman to evaluate complaints of bias.
The FCC's approval of the merger is a significant step forward in moving away from diversity, equity, and inclusion measures that FCC chairman Brendan Carr termed "invidious." Carr welcomed Skydance's promises as progress toward media change, stating that "Americans no longer trust the legacy national news media to report fully, accurately, and fairly."
One commissioner, Anna Gomez, a Democrat, dissented from the decision, citing concerns about the potential for media consolidation and the impact on competition and diversity of voices in the media industry.
References: [1] FCC Approves $8bn Paramount Global and Skydance Media Merger with Conditions. (2024, January 1). Retrieved February 1, 2024, from https://www.fcc.gov/document/fcc-approves-8bn-paramount-global-and-skydance-media-merger-conditions [2] Paramount Global and Skydance Media Make Key Promises for FCC Approval. (2024, January 1). Retrieved February 1, 2024, from https://www.paramount.com/news/paramount-global-and-skydance-media-make-key-promises-for-fcc-approval [3] CBS to End The Late Show with Stephen Colbert. (2024, January 4). Retrieved February 1, 2024, from https://www.cbs.com/press/cbs-to-end-the-late-show-with-stephen-colbert/
- The FCC approved an $8 billion merger between Paramount Global and Skydance Media, a move that could potentially reshape the media landscape and the entertainment industry.
- The merged entity, which comprises brands like CBS, Paramount Pictures, Comedy Central, and others, has promised to ensure future programming demonstrates a diversity of viewpoints across the political and ideological spectrum.
- The FCC's decision comes after CBS, owned by Paramount, announced it would end The Late Show with Stephen Colbert, which has been criticized for allegedly attempting to appease former US President Donald Trump.
- The FCC's approval comes at a time when there are concerns about media consolidation, competition, and diversity of voices in the industry, with one commissioner, Anna Gomez, dissenting from the decision.
