On July 25, 2025, the Federal Communications Commission (FCC) approved the $8 billion merger between Paramount Global and Skydance Media, marking a significant consolidation in the American entertainment and media landscape. The decision came after a 2–1 vote, with FCC Commissioner Anna Gomez dissenting due to concerns over editorial independence. The merger is now set to close by August 7, 2025.
The transaction, first announced in July 2024, is structured in two phases. Skydance investors will first acquire National Amusements, Paramount’s controlling shareholder, for roughly $2.4 billion in cash. This will be followed by an all-stock merger valued at approximately $4.75 billion. The deal values the combined company at around $28 billion and brings together Paramount’s extensive film and television libraries with Skydance’s high-production-value content.
A major legal hurdle was cleared earlier this month when Paramount agreed to a $16 million settlement in a lawsuit brought by former President Donald Trump. The suit centered around a controversial “60 Minutes” interview aired on CBS. As part of the settlement, Paramount made editorial concessions that likely helped expedite regulatory approval.
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The FCC’s green light followed prior approvals from both the Securities and Exchange Commission and the European Commission. These earlier reviews focused on antitrust and financial concerns, clearing the way for the final domestic regulatory review. The FCC’s decision addressed issues specifically related to Paramount’s 28 CBS-owned broadcast licenses.
As part of the merger’s approval, Paramount agreed to several conditions aimed at addressing concerns about media bias and viewpoint diversity. These included commitments to maintaining ideological balance in CBS programming, the appointment of an ombudsman for a minimum of two years to oversee complaints, and the elimination of diversity, equity, and inclusion (DEI) programs. The FCC argued that these measures would enhance public trust and ensure editorial neutrality, though critics, including Commissioner Gomez, warned they could amount to unprecedented government interference in newsroom operations.
Skydance CEO David Ellison will assume the role of chairman and CEO of the merged company, with former NBCUniversal executive Jeff Shell serving as president. George Cheeks, co-CEO of CBS, is expected to be the only current Paramount executive to remain in a leadership role. The new entity will be listed under the ticker “PSKY” on the Nasdaq stock exchange.
Investors responded positively to the FCC’s decision. Paramount shares rose nearly 2% in pre-market trading following the announcement, contributing to a broader gain of approximately 25% to 27% for the year. Management also indicated plans to implement $2 billion in cost reductions. These include scaling back legacy cable networks such as MTV and Comedy Central, and restructuring operations at CBS News, which has recently experienced leadership turnover.
Beyond its financial and operational implications, the merger has stirred significant political and legal debate. The conditions imposed by the FCC are viewed by some as an attempt to reshape the media landscape in line with the ideological preferences of the current administration. Critics argue that such regulatory influence risks infringing on First Amendment protections and could set a precedent for future media consolidations.
As the deal moves toward finalization, media analysts and legal scholars are watching closely to see how the new company will navigate its editorial commitments and public expectations. The outcome could influence future mergers in the industry, particularly regarding the regulatory balancing act between media consolidation and content neutrality.
The Paramount–Skydance merger, now in its final stages, stands as one of the most significant entertainment deals of the decade. It not only redefines corporate alignments in Hollywood but also raises broader questions about the role of government in shaping the editorial stance of major media outlets.
