Paramount and Skydance Set August 7 Merger Closing Date with Government Approval

Paramount Global and Skydance Media have set Aug. 7 to close their merger following the Federal Communications Commission's approval. The merger, which has been long-awaited, was subject to government clearance. The companies' shareholders approved the deal in January. The merger will combine Paramount's film and television production studios with Skydance's existing operations. The deal is expected to expand Paramount's capabilities and provide greater opportunities for its content.

Paramount Global and Skydance Media have set August 7 as the date for their merger to close, following the approval by the Federal Communications Commission (FCC). The long-awaited deal, which has been subject to government clearance, was approved by shareholders in January. The merger will combine Paramount's film and television production studios with Skydance's existing operations, aiming to expand Paramount's capabilities and provide greater opportunities for its content.

The $8 billion merger, valued at $8.4 billion after considering synergies, was announced in July 2024. It involves Skydance and its investment partner, RedBird Capital, acquiring National Amusements, Inc. (NAI), the Redstone family's holding company that controls 77% of Paramount's voting power. The combined company will be worth $28 billion, with David Ellison as chairman and CEO, and former NBCUniversal CEO Jeff Shell as president [1].

The merger aims to address Paramount's recent financial struggles, including a 6% revenue decline and a 19% drop in advertising revenue in Q1 2025. The deal leverages Skydance's technological expertise and financial backing, with a $1.5 billion investment to bolster Paramount's operations. The FCC highlighted potential public benefits, noting that the deal could enhance CBS's television network and revitalize Paramount's streaming platforms, Paramount+ and PlutoTV, through AI-driven recommendation engines and unified cloud infrastructure [2].

The merger process was overshadowed by controversy, including a $16 million settlement Paramount paid to resolve a lawsuit filed by President Donald Trump over a 60 Minutes interview with Vice President Kamala Harris. Critics labeled the settlement a "cowardly capitulation" and suggested it was a "bribe" to secure merger approval [3]. Further controversy arose from Skydance's concessions to the FCC, including a pledge to eliminate diversity, equity, and inclusion (DEI) initiatives at Paramount and appoint an ombudsman to monitor CBS News for editorial bias for at least two years [4].

The merger positions "New Paramount" as a formidable player in a media industry dominated by streaming giants like Netflix, Amazon, and Disney. The combined company will control iconic brands such as CBS, Nickelodeon, MTV, and Comedy Central. However, the deal has raised concerns about editorial independence and the future of media consolidation [2].

References:
[1] https://hk.finance.yahoo.com/news/skydance%E6%9C%83%E6%99%A4%E7%BE%8E%E5%9C%8B%E9%80%9A%E8%A8%8A%E5%A7%94%E5%93%A1%E6%9C%83-%E4%BF%83%E6%89%B9%E5%87%86%E8%88%87%E6%B4%BE%E6%8B%89%E8%92%99-para-us-%E5%90%85%E4%BD%B5-202302328.html
[2] https://www.screendaily.com/news/paramount-global-skydance-merger-expected-to-close-on-august-7/5207336.article
[3] https://www.politico.com/news/2025/07/24/fcc-greenlights-skydance-paramount-cbs-00476030
[4] https://www.bbntimes.com/companies/fcc-approves-skydance-paramount-merger-a-transformative-shift-in-the-u-s-media-landscape