FCC approves Paramount’s merger with Skydance
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The news: The United States Federal Communications Commission (FCC) has approved Paramount Global’s merger with the Hollywood production firm Skydance, paving the way for the closure of one of the biggest media deals of the last decade.
The context: FCC chairman Brendan Carr, a Trump administration appointee, approved the transaction in a statement on Friday morning Australian time. He said Skydance had made written commitments to making significant changes at the company amid falling trust in “the legacy national news media”.
Paramount and Skydance announced their merger agreement in July last year. The Skydance consortium, composed of the Ellison family and RedBird Capital Partners, said at the time it would invest about USD8 billion ($12.1 billion) in the deal.
As part of the transaction, the consortium will acquire National Amusements for USD2.4 billion. National Amusements, controlled by Shari Redstone, holds Paramount’s voting rights and entered merger negotiations with Skydance in December 2023.
Ellison is set to lead the newly formed “New Paramount” as chair and chief executive, with former NBCUniversal chief Jeff Shell as president.
Paramount owns CBS, MTV and a portfolio of cable television assets globally, including the Australian free-to-air Network 10.
The company’s co-CEOs, George Cheeks, Chris McCarthy and Brian Robbins, described 2023 as a transformative year as Paramount continues its transition to a streaming-first media company.
The merger has attracted regulatory and political scrutiny since it was announced last year.
Paramount was until earlier this month the target of a lawsuit from US President Donald Trump, who accused the Paramount-owned cable network CBS of deceptively editing an interview with Democratic nominee Kamala Harris ahead of the 2024 US election.
Paramount agreed to pay Trump USD16 million ($24.5 million) to settle the case earlier this month.
What they said: “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,” Carr said in a statement.
“In particular, Skydance has made written commitments to ensure that the new company’s programming embodies a diversity of viewpoints from across the political and ideological spectrum. Skydance will also adopt measures that can root out the bias that has undermined trust in the national news media.
“These commitments, if implemented, would enable CBS to operate in the public interest and focus on fair, unbiased, and fact-based coverage. Doing so would begin the process of earning back Americans’ trust. Today’s decision also marks another step forward in the FCC’s efforts to eliminate invidious forms of DEI discrimination. And Skydance’s commitment to enhancing local news and reporting — coverage valued by the public — will also inure to the benefit of the American people.”
The source: FCC statement
