The merger clears the $8.4 billion sale path for some of the most well-known names in entertainment, including CBS, Paramount and Nickelodeon.
Paramount – Skydance Merger clears FCC with CBS Newsroom Changes
The FCC has approved Paramount’s $8.4 billion sale to Skydance Media as CBS prepares for newsroom reforms, including elimination of the DEI program.
On Thursday, the US Federal Communications Commission approved the merger of Paramount Global and Skydance Media, clearing the $8.4 billion sale path, the most well-known names in entertainment, including CBS Broadcast Television Network, Paramount Pictures and Nickelodeon Cable Channel.
The FCC has agreed to transfer the broadcast licenses of 28 owned and operated CBS television stations to new owners after Paramount paid $16 million to settle Paramount to resolve a lawsuit filed by President Donald Trump in an “60-minute” interview with former Vice President Kamala Harris aired in October.
FCC Chairman Brendan Kerr said the agency’s review of the proposed merger was not related to civil litigation.
The approval comes after Skydance and its investment partner Redbird Capital assured the FCC a commitment to unbiased journalism that represents a diverse range of perspectives. Skydance said it would appoint an ombudsman to assess complaints of editorial bias or other concerns regarding CBS to promote increased transparency and accountability.
Paramount also eliminated its diversity, equity and inclusion initiatives in order to align with the Trump administration’s view that such a positive action policy is discriminatory.
Carr “welcomes Skydance’s commitment to making significant changes to the former well-known CBS broadcasting network. In particular, Skydance is making a written commitment to ensure that the programming of the new company embodies diverse perspectives from the entire political and ideological spectrum.”
Kerr also welcomed what he called victory in “the FCC effort to eliminate the mysterious form of Dei discrimination.”
The FCC voted 2-1 to approve the contract, Democrat FCC Commissioner Anna Gomez opposed. “After months of coronavirus surrender to this administration, Paramount finally got what it wanted. Unfortunately, it’s the Americans who ultimately pay the price for their actions,” she said.
She said, “In an unprecedented move, this once independent FCC uses its vast power to mediate private legal settlements, pressure Paramount to further erode press freedom, and, more surprisingly, in its initial amendments and direct violations of the law, imposes control that does not impose newsroom decisions and editorial judgments.”
Skydance CEO David Ellison, son of Oracle co-founder Larry Ellison, is poised to become Chairman and CEO of New Paramount. Jeff Shell, former CEO of Comcast’s NBCuniversal, will become the new president.
This deal marks the end of the Redstone family’s era. The late Puter Familia, the late Sumner Redstone, transformed the family’s drive-in movie theater chain into a media empire that once spanned broadcasting, cable television, film, radio and publishing.
Shari Redstone served as a chair at Paramount in 2019. In 2019, they reunited two family-controlled media companies, Viacom and CBS, and were separated for over 12 years.
At the time, she wanted the company to set up a better position to compete with the world’s entertainment giants. Paramount threw away billions of dollars in market valuation as it struggled to navigate the entertainment business covered by the streaming video revolution.
