The FCC has approved an $8 billion Skydance–Paramount merger, shaking up Hollywood and U.S. media politics.
The U.S. Federal Communications Commission has officially greenlit the $8 billion merger between Paramount Global and Skydance Media, paving the way for one of the most politically charged entertainment mergers in recent memory. The decision comes on the heels of Paramount settling a $16 million lawsuit with President Donald Trump and announcing the cancellation of The Late Show with Stephen Colbert—raising questions over political influence, newsroom independence, and editorial direction at CBS.
According to the BBC, the FCC voted 2–1 in favor of the deal, with Commissioner Brendan Carr—appointed by Trump—praising Skydance’s plans for CBS and advocating its promises to implement “unbiased journalism.” Carr emphasized the agency’s intent to rebuild public trust in the national media, citing Americans' growing dissatisfaction with legacy outlets.
Regulators and the Trump Settlement: A Deal in the Shadows?
As the FCC reviewed the merger, Paramount quietly reached a $16 million settlement with Donald Trump over a 60 Minutes interview with then–Vice President Kamala Harris that Trump claimed was deceptively edited to favor Democrats. According to Reuters, the funds were earmarked for Trump’s future presidential library—not paid to him personally. The timing of the agreement raised concerns that Paramount was appeasing the Trump-aligned FCC to secure regulatory clearance.
In her dissenting opinion, Democratic FCC Commissioner Anna Gomez condemned the approval, stating, “It is the American public who will ultimately pay the price,” and alleging the merger was driven by political pressure.
What the Merger Means for CBS and Legacy Media
The new company, temporarily dubbed Paramount Skydance Corporation, will absorb CBS, Paramount Pictures, Comedy Central, Nickelodeon, MTV, BET, and Paramount+. As part of the agreement, 28 owned-and-operated CBS affiliates will have their broadcast licenses transferred to Skydance.
According to The Wall Street Journal, Skydance agreed to eliminate DEI (diversity, equity, and inclusion) programs at CBS—a move aligned with conservative political pressure. The company also committed to appointing an ombudsman to address complaints of newsroom bias, a condition that will remain in place for two years.
Ownership will shift dramatically, with David Ellison (Skydance CEO and son of Oracle founder Larry Ellison) serving as chairman and CEO. Jeff Shell, the former NBCUniversal CEO who was ousted in 2023 after a scandal, will become president of the newly combined entity.
Donald Trump and David Ellison, Skydance CEO, at the center of the controversial $8 billion Paramount merger saga.
The Cancellation of The Late Show: A Political Statement in Disguise?
The decision by CBS to cancel The Late Show with Stephen Colbert—announced just days after the Trump lawsuit was settled—has ignited fresh accusations of editorial capitulation. According to The Guardian, Democratic lawmakers including Senator Elizabeth Warren and Representative Alexandria Ocasio-Cortez have demanded internal investigations, questioning whether the merger influenced programming decisions.
CBS claimed the decision was driven purely by finances, citing falling ad revenues and increased production costs. However, the show’s ratings remained competitive, and Colbert had just publicly referred to Paramount’s Trump settlement as a “big fat bribe.”
Leadership Shake-Up and Strategic Repositioning
The deal marks a radical shift for Paramount, whose roots stretch back to 1914. In the wake of financial struggles, executive departures are already underway. Streaming boss Chris McCarthy and studio head Brian Robbins are expected to exit, while CBS president George Cheeks will retain his role temporarily. According to Vulture, the merged entity is expected to lean heavily into franchise development, streamlining its content strategy around profitable tentpoles like Mission: Impossible and Top Gun.
The merger is anticipated to close by October 5, 2025.
Frequently Asked Questions (People Also Ask)
Is the Paramount–Skydance merger officially complete?
No, while the FCC has approved the deal, the transaction is still awaiting final steps. The expected closing date is in the second half of 2025.
Did Stephen Colbert get cancelled because of Trump?
CBS says the cancellation of The Late Show was a financial decision. However, critics point to the timing—days after Colbert slammed the Trump settlement—as politically suspicious.
What does Skydance gain from the merger?
Skydance will gain full control of CBS, Paramount Pictures, and several global brands like Nickelodeon and MTV, along with their streaming service, Paramount+.
Why was the DEI program at CBS ended?
As a condition of FCC approval, Skydance agreed to end DEI programs. The move reflects broader political pressures from Trump-aligned regulators.
Final Thoughts: A New Era for American Media
This merger is more than a business transaction. It represents a tectonic shift in how media power, politics, and editorial integrity intersect. With a Trump ally now influencing CBS's structure and programming direction, and with one of late night’s most outspoken hosts abruptly axed, the implications go far beyond box office returns.
Stay tuned—what happens at the new Paramount-Skydance could set the tone for the next decade of American broadcast journalism.
