FCC Approves Paramount’s $8 Billion Merger With Skydance

The merger will marry the smaller Skydance, a movie-and-television-production company, with the Paramount Pictures movie studio and the CBS broadcast network, as well as well-known cable channels including MTV, Nickelodeon and Comedy Central.

The deal is driven by the entertainment industry’s belief that it needs to consolidate to better compete with tech giants such as Apple, Amazon and Netflix that operate their own studios and increasingly popular streaming services. 

As part of the government’s approval, Skydance Chief Executive David Ellisonpledged to FCC Chairman Brendan Carr that Paramount Global’s CBS News would commit to unbiased journalism and that the network’s “editorial decision-making reflects the varied ideological perspectives of American viewers,” according to a letter the company filed at the agency detailing the meeting.

In addition, the company said it would create an ombudsman position at CBS News who will have the job of reviewing “any complaints of bias or other concerns.”

Skydance also reassured Carr that all diversity, equity and inclusion initiatives at Paramount Global had been shelved and that the combined company wouldn’t establish any such programs.

“Americans no longer trust the legacy national news media to report fully, accurately, and fairly,” Carr said. “It is time for a change. That is why I welcome Skydance’s commitment to make significant changes at the once storied CBS broadcast network.” 

Skydance and Paramount declined to immediately comment. 

Paramount Global early this month agreed to pay $16 million to settle a lawsuit by President Trump alleging “60 Minutes” deceitfully edited an interview with Democratic presidential candidate Kamala Harris to make her sound better. CBS denied any wrongdoing or doctoring her comments.

Trump recently said he anticipates receiving advertising and public-service ad commitments valued at $20 million from Skydance Media as well. Skydance hasn’t commented on Trump’s remarks, which were made on a Truth Social post. 

FCC commissioners voted 2-to-1 to approve. Democratic commissioner Anna Gomezvoted against, saying the agency “used its vast power to pressure Paramount to broker a private legal settlement and further erode press freedom.” 

The agency, she said, was “imposing never-before-seen controls over newsroom decisions and editorial judgment, in direct violation of the First Amendment and the law.”

Last week, CBS said it was canceling Stephen Colbert’s “Late Show” after the host’s contract expires next year. 

CBS said it was ending the show for financial reasons. Some Democratic lawmakers and people in Hollywood, citing Colbert’s criticism of Trump, speculated the cancellation was tied to getting the Skydance deal closed.

Trump posted on Truth Social that he loved that “Colbert got fired.”

After the deal closes, Skydance is expected to move fast to put its management team in place, according to people familiar with the matter. Former NBCUniversal and Fox executive Jeff Shell will become president of the combined company. 

Cindy Holland, a well-regarded former Netflix programming executive, is expected to oversee the company’s streaming business.

George Cheeks, a co-chief executive of Paramount and head of CBS, is expected to stay with the new company. Brian Robbins, also a co-CEO of Paramount Global and head of movie operations, is likely to depart. 

Skydance’s Ellison first approached Paramount controlling shareholder Shari Redstone about a potential deal in late 2023, The Wall Street Journal has reported. The two companies began on-again, off-again merger talks culminating in a deal being reached in July 2024.

The deal was filed at the FCC for approval in September. Because CBS holds nearly 30 broadcast television stations, the agency has to approve any change of control. 

Carr has made ending DEI practices at media and telecom companies a priority. He also expressed concern over the “60 Minutes” Harris interview. He demanded CBS release a full transcript as part of the agency’s review of a complaint against the network for “news distortion” from The Center for American Rights.

Write to Joe Flint at Joe.Flint@wsj.com