House Democrats Investigate Paramount-Skydance Merger Over Alleged Bribery to Trump

House Democrats are investigating whether Paramount and Skydance Media paid an "illegal bribe" to President Trump to secure approval for their $8 billion merger with the Federal Communications Commission. The investigation was sparked by a joint letter from two top House Democrats, who alleged that the companies caved into Trump's "illegitimate demands." The merger was approved by the FCC in December 2021.

House Democrats are investigating whether Paramount and Skydance Media paid an "illegal bribe" to President Trump to secure approval for their $8 billion merger with the Federal Communications Commission (FCC). The investigation was sparked by a joint letter from two top House Democrats, who alleged that the companies caved into Trump's "illegitimate demands." The merger was approved by the FCC in December 2021 [1].

The letter, obtained by CNBC, was sent by Representatives Jamie Raskin (D-MD) and Frank Pallone (D-NJ) to David Ellison, CEO of the newly formed Paramount Skydance Corporation. The lawmakers expressed concern that the merger might have been influenced by Trump's demands, including a $16 million settlement over a CBS interview with then-Vice President Kamala Harris [2].

Raskin and Pallone cited reports indicating that Trump expected an additional $20 million in advertising, PSAs, or similar programming from the new owners of Paramount. They believe this side deal was contingent on the FCC's approval of the merger and does not present any legitimate value to the public, only to President Trump. The lawmakers suggested that this arrangement constitutes an offer of payment and benefits to a government official to achieve a specific outcome, which they described as a bribe [1].

The merger was initially on hold for almost a year before the FCC allowed it to close. The lawmakers have given Paramount two weeks to respond to their questions and provide internal materials, including communications involving Trump, the White House, the FCC, and the Trump Organization [2].

The investigation follows CBS's recent cancellation of "The Late Show with Stephen Colbert," whose host criticized the settlement as a "big fat bribe." Additionally, the lawmakers noted that Skydance agreed to make changes to CBS and its editorial practices that align with the Trump Administration's political agenda as a condition of the merger [2].

The FCC's approval of the merger marked a step forward in its efforts to eliminate diversity, equity, and inclusion (DEI) efforts, according to Chairman Brendan Carr [2]. However, the lawmakers' investigation into the alleged bribe could potentially impact the companies' reputation and financial standing.

Unrelated to the probe, Paramount Skydance Corporation (PSKY) shares are up 14.6% by afternoon on Thursday [1].

References:

[1] https://seekingalpha.com/news/4488029-house-dems-probe-paramount-skydance-merger-over-possible-illegal-bribe-paid-to-trump

[2] https://www.cnbc.com/2025/08/21/raskin-trump-paramount-skydance-probe.html