By David Bauder
With FCC approval this week, the merger between Paramount Global and Skydance Media is expected to be completed at a value of $8 billion in the coming weeks. The question of the new company is whether psychic costs are much higher.
It took a few months, especially at Paramount-owned CBS. There, the settlement of the “60 minutes” lawsuit and the end of Stephen Colbert’s late-night show suggested that critics were indicative of corporate leaders succumbing to President Donald Trump.
Following Thursday’s approval of the Federal Communications Commission, one of the current Paramount Leader’s victory, Christ McCarthy, said he would leave the company. McCarthy is responsible for the decline of cable properties such as MTV, Comedy Central and Nickelodeon, and is expected to bear the brunt of an estimated $2 billion cost savings identified by Skydance leaders.
Skydance head David Ellison is expected to lead the new company, identifying former NBC Universal Executive Jeff Shell as the new president.
CBS News’ trajectory is examined
After the August 7 deadline for the merger, the new leaders will be most closely monitored how they handle CBS News, especially considering the $16 million paid in settlements of Trump’s complaints that last fall’s “60 Minutes” interview, which was compiled and settled the look of his opponent, Kamala Harris. Two News Executives – News CEO Wendy McMahon and “60 Minutes” executive producer Bill Owens have stepped down in opposition to the deal.
The appointment of respected insider Tanya Simon to replace Owens this week was seen as a positive sign by “60 minutes” people.
A few days before the FCC vote, Paramount agreed to hire an ombudsman on CBS News on its mission to investigate complaints of political bias. “In every respect, Skydance ensures that CBS’s report is fair, fair and factual,” Skydance said in a letter to FCC Chairman Brendan Kerr.
The role of the ombudsman or public editor looking into the work of news outlets is often positive. If given independence, said Kelly McBride, an ethics expert who has been in that role for five years at NPR. “I really want you to be loyal to your judgment and the organization’s journalistic mission,” she said.
However, it can be problematic that there is only one mission to look into bias. To be fair, she said that the work of journalists should be studied closely before making the decision, rather than being judged based on a single report or passage.
In an interview with CNBC on Friday, Kerr said the role “should do a great job in restoring America’s trust in the media.” FCC Commissioner Anna Gomez, who voted to reject the contract on Thursday, interpreted the arrangement as a way for the government to control journalists.
“They want to report to the news media about them in the positive views and light they want,” Gomez told MSNBC. “So they don’t want to work in the media, meaning they want to explain to the government without fear or favor.”
How Mergers Ripples across Paramount Properties
According to published reports, Ellison explored the purchase of Free Press, a thriving news site founded by Bali Weiss, perhaps best known for his previous NPR editor’s research into liberal bias in public broadcasting. An Ellison spokesperson did not reply to a message seeking comment Friday.
Colbert’s slow motion layoff – he works until the end of his contract next May – was described as a financial decision by CBS given the collapsed economics of late-night television. Colbert’s Trump’s ruthless lambhoon and his criticism of “60 minutes” reconciliation brought doubts of those motives.
“Was this really financial?” Comic John Stewart wondered. “Or perhaps the path to the least resistance to a $8 billion merger was killing a show you know you’ve been ranked vulnerable and revenge president?”
Stewart’s profan criticism of his own top priority show may offer a unique test for Skydance. “The Daily Show” is one of the few original programs left at Comedy Central, and his contract ends later this year.
Oddly, buttress CBS’s claims of Comedy Central’s “South Park” claim that Colbert’s decision is financial rather than political. Creators Trey Parker and Matt Stone delivered an episode this week about a demon and a naked card in bed. Paramount has just signed Parker and Stone for a new $1.5 billion deal that Skydance executives have certainly cleared. Allows the entire “South Park” library to be streamed on Paramount+. A platform where Colbert shows barely work.
figuring out what to do with others in Paramount’s cable network, or across the network, would be an early decision for Ellison, son of his large-money son and co-founder of Oracle, Larry Ellison.
“By letting go of these assets there is a clear opportunity to improve Paramount’s growth profile,” TD Securities analyst Doug Krutz told investors on Friday. “On the other hand, it appears that Ellisons didn’t buy Paramount to split the parts.”
The merger has brought Paramount Movie Studio to one of its most legitimate partners. David Ellison has been one of the industry’s top investors and producers since founding SkyDance in 2006.
Ellison also has a challenge. The longstanding uncertainty about the future and modest investment in the film pipeline has reduced Paramount’s market share among major studios. Paramount+ Streaming Service was Money Rose.
To bring Paramount back, Ellison will revamp its streaming operations, leverage the franchise and try to strengthen the family’s content.
Associated film writer Jake Coyle contributed to this report.
David Bauder writes about the intersection of media and entertainment on the AP. Follow him at http://x.com/dbauder and https://bsky.app/profile/dbauder.bsky.social.
Original issue: July 25th, 2025, 7:27pm EDT
