Paramount Global Stock Jumps to New 52-Week High After FCC Approves Merger with Skydance Media.

Paramount Global (PARA) shares jumped to a new 52-week high after the FCC approved the $8 billion merger with Skydance Media. The agency took 250 days to review the merger, citing concerns about news and journalism from legacy news channels. The FCC's approval was contingent upon conditions, including the creation of an ombudsman position at CBS News and the elimination of diversity, equity, and inclusion initiatives. The merger is expected to close in the coming weeks, with Skydance CEO David Ellison set to head the combined entity.

The Federal Communications Commission (FCC) has approved Skydance Media's $8.4 billion acquisition of Paramount Global and its subsidiaries, a move that will see David Ellison take control of the storied entertainment company. The approval, which comes after a 250-day review period, includes conditions such as the creation of an ombudsman position at CBS News and the elimination of diversity, equity, and inclusion initiatives. The merger is expected to close in the coming weeks, with Skydance CEO David Ellison set to head the combined entity [1].

The FCC's decision follows a months-long review process and comes amidst political controversy. The commission's 2-1 vote, along party lines, allows the transfer of CBS's television stations to Skydance, which will acquire assets including the CBS broadcast network, Paramount Pictures, and Nickelodeon. The approval follows a months-long review and comes just weeks after Paramount paid $16 million to settle a lawsuit filed by President Donald Trump, a move that drew accusations the company had effectively bought political favor to secure its merger [2].

The approval clears the way for Ellison, son of Oracle co-founder Larry Ellison, to become chair and chief executive of the new Paramount. Jeff Shell, the former chief executive of NBCUniversal, will serve as president. Chris McCarthy, one of Paramount’s current co-CEOs, is expected to depart once the transaction closes [3].

The deal marks the end of an era for the Redstone family, which built Paramount into a media empire spanning television, film, and publishing under the late Sumner Redstone. His daughter, Shari Redstone, who became chair in 2019, sought to position the company to compete in a rapidly evolving media landscape dominated by streaming giants. Instead, Paramount has shed billions in market value in recent years amid industry upheaval [2].

The approval of the merger has had an immediate impact on Paramount's stock. The shares jumped to a new 52-week high following the announcement, reflecting investor confidence in the deal and the potential for strategic growth under new leadership [4].

References:
[1] https://www.fcc.gov/document/fcc-approves-skydances-acquisition-paramount-cbs
[2] https://www.storyboard18.com/television/us-regulators-clear-8-4-billion-paramount-skydance-merger-amid-political-scrutiny-76800.htm
[3] https://variety.com/2025/tv/news/skydance-promises-fcc-eliminate-dei-paramount-cbs-news-ombudsman-1236467977/
[4] https://economictimes.indiatimes.com/news/international/global-trends/us-fcc-clears-way-for-8-billion-paramount-skydance-merger/articleshow/122892166.cms