Merger of Paramount and Skydance, valued at $8 billion, receives US approval
The merger between Paramount Global and Skydance Media was officially approved by the Federal Communications Commission (FCC) on July 24, 2025, with the transaction expected to close on August 7, 2025. This $8 billion acquisition includes key assets like CBS, Paramount Pictures, and Nickelodeon. The new entity, called "Paramount Skydance Corporation", is valued at around $28 billion.
The approval process and the merger sparked controversy regarding press freedom and media consolidation. FCC Chairman Brendan Carr welcomed the merger, highlighting Skydance's commitments to diversify viewpoints across political and ideological spectra and to hire an independent adviser to evaluate bias complaints. Carr framed this merger as a necessary step given waning public trust in legacy news media and presented it as progress against so-called "invidious forms" of diversity, equity, and inclusion (DEI) measures.
In contrast, FCC Commissioner Anna Gomez dissented, warning that the merger would "further erode press freedom" and criticized the FCC and Paramount for capitulating to political pressures. Gomez argued the public will ultimately suffer from reduced press independence as a result.
The entertainment industry reaction was mixed but leaned toward concern about media consolidation reducing creative opportunities. Hollywood figures including James Cameron and the Writers Guild of America expressed worries that fewer content producers would decrease choice and diversity. Others like Jane Fonda, John Krasinski, and Mark Wahlberg supported the deal, viewing it as beneficial for the industry under Skydance's leadership.
The merger also raised concerns due to Paramount's settlement with President Donald Trump. Paramount paid $16 million to settle a lawsuit filed by Trump and CBS News. The lawsuit was over CBS' editing of a "60 Minutes" interview with Trump's Democratic opponent, Kamala Harris.
In other news, Grammys-winning jazz musician Chuck Mangione passed away at the age of 84. Senators Edward Markey and Ben Ray Luján have criticized the merger, calling it "the worst form of corruption". "The Late Show" host Stephen Colbert had called Paramount's settlement a "big fat bribe."
With the merger, CBS broadcast television network, Paramount Pictures, and Nickelodeon cable channel will be under the ownership of tech scion David Ellison, Skydance CEO and the son of Oracle co-founder Larry Ellison. Jeff Shell, former chief executive of Comcast's NBC Universal, will be the new president of the merged company. Chris McCarthy, one of Paramount's current trio of CEOs, has decided to depart the company once the merger is completed.
The incoming owners of the merged company are committed to unbiased journalism, according to FCC Chairman Brendan Carr. The commission also received pledges from Skydance to appoint an ombudsman for evaluating complaints of editorial bias or other concerns about CBS. Carr also praised the FCC's efforts to eliminate discriminatory forms of DEI discrimination.
As the dust settles, the impact of this merger on the U.S. media landscape, press freedom, and creative opportunities remains to be seen.
[1] The New York Times [2] The Washington Post [3] Variety
- The valuation of the newly formed Paramount Skydance Corporation, following the approval of the merger between Paramount Global and Skydance Media, is around $28 billion.
- The entertainment industry has shown a mixed interest in the merger, with some figures expressing concern about media consolidation reducing creative opportunities, while others view it as beneficial for the industry under Skydance's leadership.
- FCC Commissioner Anna Gomez, in her dissent, criticized the merger, suggesting it would further erode press freedom and reduce press independence.
- The acquisition, which includes key assets like CBS, Paramount Pictures, and Nickelodeon, has raised general-news concerns due to Paramount's settlement with President Donald Trump.
