FCC Greenlights Skydance’s Paramount Takeover: A New Era for CBS, Studios, and Streaming

$8 Billion Deal Approved as Regulators Prioritize Financial Stability and Vow to Address Concerns Over News Media Trust

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Washington D.C., USA: In a move that’s set to significantly reshape the media landscape, the Federal Communications Commission (FCC) has officially given its blessing to David Ellison’s Skydance Media to acquire Paramount Global. This approval, led by FCC Commissioner Brendan Carr, came through on Thursday, clearing the final hurdle for the massive $8 billion deal by approving the transfer of Paramount’s crucial broadcast licenses.

With this FCC stamp of approval, Skydance is now free to complete its acquisition of Paramount swiftly. This means David Ellison will soon be at the helm of a media giant that owns powerhouse entities like CBS, the iconic Paramount film studio, the streaming service Paramount+, and popular cable channels such as MTV, Comedy Central, and Nickelodeon.

Commissioner Carr didn’t mince words in his statement, directly addressing public sentiment: “Americans no longer trust the legacy national news media to report fully, accurately, and fairly. It is time for a change. That is why I welcome Skydance’s commitment to make significant changes at the once storied CBS broadcast network.”

At the heart of the FCC’s decision was the potential public benefit, particularly Skydance’s ability to tackle Paramount’s significant financial woes head-on. The official order stated, “We find that the record indicates that the Transaction will produce some public interest benefits, including enhancing the service of the CBS television network and its owned-and-operated local television broadcast stations and revitalizing Paramount to navigate challenging economic and marketplace conditions.”

Paramount Global has been facing considerable challenges, largely due to ongoing economic headwinds and a drastic shift in how people consume media. Skydance pointed out that Paramount’s operating costs have been increasing unsustainably, while its traditional revenue streams are shrinking. These challenges left Paramount saddled with a whopping $14.6 billion in long-term debt by the end of 2023. If this merger gets the final green light, Skydance has promised to inject $1.5 billion in new capital into the company. This substantial boost aims to bolster operations and provide a clear path for investing in news, keeping popular live sports, and producing beloved movies and TV shows.

Ultimately, the FCC sided with Skydance’s argument: this acquisition offers Paramount a pathway to emerge as a “stronger and more vibrant competitor in the modern media landscape.” A key factor in this finding was the promising future envisioned for Paramount+ and PlutoTV under new leadership. The order specifically noted, “Revitalizing the technology underlying these streaming services will help to secure their continued success, and, in turn, help stabilize and support the viability of the company’s broadcast services.”

A core idea behind this merger is Ellison’s plan to significantly expand Paramount’s technological capabilities. This includes improving recommendation engines using artificial intelligence to keep subscribers engaged longer on the platform, upgrading advertising technology to offer marketers better reach and information, and unifying cloud providers to drastically cut costs.

Another significant factor in the approval was Skydance’s commitment to eliminating all Diversity, Equity, and Inclusion (DEI) initiatives within the company. Furthermore, Skydance has vowed to hire an ombudsman at CBS News specifically to monitor for media bias, a point that has drawn both support and criticism.

The transfer was approved by a 2-1 vote. In a dissenting opinion, Anna M. Gomez, a Democratic commissioner on the FCC, sharply criticized the agency’s decision. She argued that the FCC “used its vast power to pressure Paramount to broker a private legal settlement and further erode press freedom.” She went on to add, with even greater alarm, that the FCC was “imposing never-before-seen controls over newsroom decisions and editorial judgment, in direct violation of the First Amendment and the law.”

This Skydance deal has been a year in the making, with Skydance and its partner, RedBird Capital, successfully outbidding other potential suitors last year for the media asset. Paramount Global was previously controlled by Shari Redstone and her family’s National Amusements holding company. Once the deal is finalized, David Ellison will step in as CEO of the combined company, with former NBCUniversal CEO Jeff Shell taking on the role of its president.

This FCC approval also comes just a few weeks after Paramount settled a high-profile lawsuit brought against it by President Donald Trump. The lawsuit stemmed from an interview the CBS News show “60 Minutes” conducted with former Vice President Kamala Harris last year. While the lawsuit was settled for $16 million, Trump later told reporters it also included free advertising related to issues important to him – a claim Paramount vehemently denied, stating there was no agreement for commercials.

The settlement itself had already caused significant resentment, anger, and disgust inside CBS News, where staff were frustrated that a deal was cut over a lawsuit they largely viewed as baseless. Despite the internal uproar, Paramount notably refused to apologize for the interview or the edits in question.