Wyatte Grantham-Philips, Associated Press
NEW YORK (AP) – Federal regulators on Thursday approved Paramount’s $8 billion merger and SkyDance, clearing a way to close the deal that combines Hollywood glamour and political intrigue.
The seal of approval from the Federal Communications Commission comes after months of confusion centered around President Donald Trump’s legal battle with “60 minutes,” a crown jewel of Paramount-owned broadcast network CBS. Paramount agreed to pay a $16 million settlement with the president earlier this month, as the ghost of the Trump administration could hamper the contract for a fierce battle with Skydance.
Critics of the reconciliation have denounced it as a bribli veiled to appease Trump amid increasing vigilance over editorial independence. More anger also emerged after CBS said it was cancelling Stephen Colbert’s “Late Show” just days after the comedian vehemently criticised the parent company’s settlement. Paramount cited financial reasons, but celebrities both inside and outside the company have questioned those motivations.
In a statement accompanying the approval of the contract, FCC Chairman Brendan Kerr welcomed the merger as an opportunity to bring more balance to CBS “present at once.”
“Americans no longer trust legacy national news media to report completely, accurately, and fairly. It’s time for change,” Kerr said.
While seeking approval, Skydance Management assured regulators that they would closely monitor bias on CBS News and hire an ombudsman to confirm any fairness complaints. In an application Tuesday, the company’s general adviser argued that the new Paramount would embody “a diverse perspective across the political and ideological spectrum,” and said it plans to take a “comprehensive review” of CBS to make “necessary changes.”
Paramount and Skydance have said they want to seal the deal by September this year, and now they look to be on the path to making it happen.
Over the past year, the merger appeared to be possible collapse as both parties have hugged on a regular basis across conditions. However, the two companies ultimately attacked an agreement that valued the total company at $28 billion. In a consortium led by Skydance families, David Ellison and Redbird Capital agreed to invest $8 billion.
Ellison signaled a shake-up along with changing security guards, highlighting the need to move towards a “high-tech hybrid” to stay competitive in today’s entertainment situation. This includes plans to “rebuild” Paramount+ streaming services amid a wide range of efforts to expand direct consumer products in the world with more entertainment options and a shorter range of attention.
Possibly poised to become CEO of the rebuilt Paramount, Ellison is the son of technology titan and Oracle co-founder Larry Ellison. In addition to owning an estimated $288 billion in property, Larry Ellison is said to be Trump’s friend.
Paramount has sweated the regulatory approval of the merger, but one of television’s most well-known and longest-running programs turned into political hot potatoes when it sued CBS over the treatment of Kamala Harris, a “60-minute” interview with Democratic opponents in last year’s presidential election. Presidential candidate. Trump denounced “60 minutes” for compiling interviews in a deceptive way designed to help Harris win the election. Initially after demanding $10 billion in damages, Trump raised Ante to $20 billion, claiming he was suffering from “mental distress.”
The incident became a closely-examined test of whether businesses would stand up to Trump in support of journalists. Editing for Brevity is common in television journalism, and CBS argued that Trump’s claims had no merit. However, reports from company executives whose potential settlements with Trump were later stacked up were piled up, especially after Kerr, who was appointed by Trump to lead the FCC, began his investigation earlier this year.
By the beginning of July, Paramount had agreed to pay Trump $16 million. The company said the money would be sent to Trump’s future presidential library to pay his legal fees, but claimed that he had not expressed any apology or regrets for the story.
The settlement sparked protest among critics who plundered Paramount by retreating from the legal battle to increase the likelihood of shutting down Skydance deals. US Sen. Elizabeth Warren (D-Mass) said the deal could be “prominently bribery,” calling for investigations and new rules to limit donations to the Presidential Library.
Concerns about editorial independence at CBS also piled up a few months before the deal was announced. Paramount has directed the “60 Minutes” story in a new way, overseeing a network’s journalist expressing his grievances about changes to the award-winning program, which has been a weekly staple for nearly 57 years.
In April, “60 Minutes” Bill Owens’ then-executive producer resigned. Another Domino also resigned in May, CBS News CEO Wendy McMahon, citing disagreements with the company amid Paramount’s speculation that is close to a settlement with Trump. CBS then appointed Tanya Simon as the top producer of “60 Minutes.” Skydance’s Ellison is a movement that can be seen as a way to calm the nerves leading to the expected changes, raising respected insiders.
Liedtke reported from San Francisco.
Original issue: July 24th, 2025, 6:59pm EDT
