FCC OKs Paramount-Skydance $8B Merger Despite Trump Controversy/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ The FCC has approved an $8 billion merger between Paramount Global and Skydance Media, ending months of political controversy. The approval follows a controversial $16 million settlement between Paramount and Donald Trump over a “60 Minutes” interview. Critics say the deal threatens press freedom and reflects increasing political influence over corporate media.
Paramount-Skydance Merger + Quick Looks
- FCC approves $8 billion merger between Paramount and Skydance
- Trump’s lawsuit over a “60 Minutes” interview spurred settlement
- Paramount paid Trump $16M amid deal negotiations
- FCC Commissioner Anna Gomez dissented, citing political pressure
- Critics label the payment as a “veiled bribe”
- CBS canceled Colbert’s show days after critical remarks
- Skydance promises ideological “balance” at CBS News
- New leadership includes David Ellison as Paramount CEO
- Paramount+ streaming overhaul planned to stay competitive
- Editorial independence at CBS remains in question
FCC Approves Paramount-Skydance $8B Merger Despite Trump Controversy
Deep Look
After months of legal turmoil and political scrutiny, the Federal Communications Commission has officially approved the $8 billion merger between Paramount Global and Skydance Media — a decision that not only redefines the media landscape but raises serious concerns about political interference and editorial independence.
The merger, approved on Thursday by a narrow 2–1 FCC vote, ends a tumultuous chapter for Paramount, one defined by lawsuits, high-stakes settlements, and accusations of capitulating to political power. Paramount’s $16 million settlement with President Donald Trump — over a “60 Minutes” interview he deemed misleading — played a central role in the political narrative that engulfed the deal.
Trump originally filed a $10 billion lawsuit against CBS over the edited interview with his 2024 opponent Kamala Harris, claiming defamation and mental anguish. The damages claim ballooned to $20 billion before Paramount agreed to settle, directing the funds to Trump’s legal defense and future presidential library. Paramount has maintained that it did not apologize or admit wrongdoing.
The settlement, however, was seen by critics as a transparent attempt to appease the Trump administration and ensure FCC approval under Trump-appointed Chairman Brendan Carr. The fallout was swift: CBS canceled Stephen Colbert’s “Late Show” days after he criticized the settlement on air, attributing the cancellation to financial pressures — a rationale questioned by industry insiders.
In a statement accompanying the FCC’s approval, Carr hailed the merger as a chance to realign CBS’s editorial posture, saying, “Americans no longer trust the legacy national news media to report fully, accurately, and fairly. It is time for a change.” His comments sparked further concern among advocates for press freedom.
Paramount’s settlement drew harsh rebukes from journalists and lawmakers alike.
Senator Elizabeth Warren called the move “bribery in plain sight” and urged an investigation. The backlash intensified as CBS News executives resigned one after another, citing creative and ethical differences. Bill Owens, the longtime executive producer of “60 Minutes,” stepped down in April, stating he could no longer run the show as he had in the past. CBS News CEO Wendy McMahon followed in May, resigning amid rumors of the looming Trump settlement.
The deal had nearly fallen apart several times, as Paramount and Skydance clashed over financial terms. In the end, Skydance and backers — led by David Ellison’s family and RedBird Capital — agreed to an $8 billion investment, valuing the combined company at roughly $28 billion. David Ellison, son of Oracle co-founder Larry Ellison, will take over as CEO of the newly merged entity.
Larry Ellison, a major tech mogul and Trump confidant, is estimated to be worth nearly $290 billion. His family’s ties to Trump have only deepened concerns about political influence over the company’s direction. Skydance has promised to address perceived bias at CBS News, pledging a comprehensive review and the appointment of an ombudsman to handle viewer complaints.
In parallel, the company is preparing to overhaul the Paramount+ streaming platform and embrace a “tech hybrid” model — blending traditional entertainment with direct-to-consumer innovation. The move is seen as necessary to survive in an industry where consumer habits shift rapidly and digital competition intensifies.
Yet even with a forward-looking business plan, the political and ethical baggage surrounding the deal has cast a long shadow. Paramount’s editorial future, particularly at CBS, remains under scrutiny as Ellison and Skydance prepare to take control.
FCC Commissioner Anna Gomez, the lone dissenting vote, lamented what she described as “cowardly capitulation” to the Trump administration. “It is the American public who will ultimately pay the price,” she said in a written statement.
Journalists at CBS worry that the culture of investigative reporting — particularly exemplified by the long-running “60 Minutes” — could suffer under new leadership more focused on ideological neutrality than journalistic rigor.
Despite the criticism, the deal is now poised to close by September, ushering in a new era at one of America’s most iconic entertainment institutions. Whether it will be remembered as a strategic transformation or a cautionary tale of corporate compromise remains to be seen.
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