FCC approves $8 billion Paramount-Skydance merger amid 2-1 vote and political scrutiny

Federal Communications Commission regulators approved Paramount Global’s $8 billion merger with Skydance Media, finalizing a deal that merges a media giant with a tech-savvy production house amid significant political and editorial scrutiny. The FCC’s 2-1 vote clears the path for the combined entity to restructure under Skydance founder David Ellison, who will assume leadership of the rebranded “New Paramount”[1].

The approval process was clouded by months of controversy stemming from Paramount’s $16 million settlement with Donald Trump over a 2024 60 Minutes interview with Kamala Harris. Critics, including U.S. Sen. Elizabeth Warren, denounced the settlement as a “bribery” tactic to secure regulatory approval, arguing it compromised CBS News’ editorial independence [1]. The payout, directed to Trump’s presidential library and legal fees, was defended by Paramount as unrelated to the 60 Minutes story but drew widespread backlash for perceived capitulation to political pressure [1].

The merger’s approval coincided with internal upheaval at CBS News, where key executives resigned or stepped down in the months leading up to the deal. Former 60 Minutes producer Bill Owens and CBS News CEO Wendy McMahon cited disagreements over editorial oversight, while Paramount elevated a longtime insider to a top role at the program [1]. Skydance has pledged to appoint an ombudsman to address fairness concerns and promised a “comprehensive review” of CBS operations to diversify viewpoints across the political spectrum [1].

Ellison, son of Oracle co-founder Larry Ellison, emphasized a strategic shift toward a “tech hybrid” model to revitalize Paramount’s streaming service, Paramount+, and expand direct-to-consumer offerings. The $28 billion combined entity will leverage Skydance’s film production expertise and Paramount’s broadcasting assets, with Ellison’s consortium investing $8 billion to fund the transition [1].

FCC Chairman Brendan Carr, a Trump appointee, framed the merger as an opportunity to restore public trust in news media, stating, “Americans no longer trust the legacy national news media to report fully, accurately, and fairly. It is time for a change” [1]. However, dissenting FCC Commissioner Anna Gomez criticized the approval as a product of “cowardly capitulation” to political influence, warning that the public would bear the consequences of Paramount’s actions [1].

The merger, now on track for a September completion, marks a pivotal moment for the entertainment industry. With Ellison’s tech-driven vision and Paramount’s legacy assets, the new entity aims to compete in a fragmented media landscape. Yet lingering questions about editorial independence, regulatory scrutiny, and political entanglements underscore the complex challenges ahead.

Source: [1] [title1] [https://fortune.com/2025/07/24/regulators-skydance-paramount-merger/]