FCC Approves $8 Billion Merger Between Paramount Global and Skydance Media
The Federal Communications Commission (FCC) has given the green light to the proposed $8 billion merger between Paramount Global and Skydance Media, paving the way for David Ellison to become the youngest studio owner in Hollywood at 42. The FCC voted 2-1 in favor of the measure, with the transfer of 28 local networks from Paramount Global to Skydance being the main obstacle to the merger.
Background of the Merger
The decision comes a year after the companies agreed in principle to merge. Ellison’s Skydance Media has co-financed several major films, including "Top Gun" and "Mission: Impossible," with Paramount. The company was supported in its bid by Redbird Capital, and former NBCUniversal CEO Jeff Shell will serve as president.
What the Merger Means for Paramount Global
The merger marks a significant shift in the ownership of Paramount Global, with controlling shareholder Shari Redstone selling control of a company that has been in her family for decades. Her late father, Sumner Redstone, built the empire, which includes Paramount Pictures, CBS, Nickelodeon, Comedy Central, and MTV.
Politics and Controversy Surrounding the Merger
The merger process has been marred by politics, with the FCC’s Brendan Carr welcoming Skydance Media’s promise to hire an ombudsman to monitor alleged media bias in CBS news programs. The network recently agreed to pay $16 million to settle a lawsuit with former President Donald Trump over an interview with presidential candidate Kamala Harris.
Implications of the Merger
The merger has significant implications for the entertainment industry, with Chris McCarthy, co-CEO of Paramount Global, set to leave the company after the merger. It is unclear what will happen to his co-CEOs, George Cheeks and Brian Robbins, who oversee the studio business. The merger also raises questions about the future of diversity, equity, and inclusion initiatives at the company, with Carr expressing satisfaction with Skydance’s commitment not to introduce such initiatives.
Reaction to the Merger
FCC member and Democrat Anna Gomez strongly disagreed with the decision, stating that she could not support the order in light of the payment and other concessions made by Paramount to settle an unfounded lawsuit. She argued that the administration had finally gotten what it wanted after months of pressure. In contrast, Carr and fellow Republican Olivia Trusty voted in favor of the merger, citing the benefits of the deal for the public interest.
