Skydance closes $8 billion Paramount merger, begins new chapter in hollywood

New Delhi: Skydance and Paramount officially finalised their $8 billion merger on Thursday, bringing together a legacy Hollywood studio and a rising media player under the leadership of Skydance founder David Ellison. The new entity, now called Paramount, a Skydance Corporation, will trade under the ticker “PSKY” on Wall Street, according to the Associated Press.

The merger ends a prolonged and contentious negotiation process that lasted over a year and involved regulatory scrutiny, political entanglements, and editorial controversies. Skydance, led by Ellison, now controls Paramount’s extensive entertainment assets, including CBS, MTV, and streaming service Paramount+.

Ellison, who takes over as chairman and CEO, said the combined company intends to modernise entertainment production and delivery while continuing to support high-quality storytelling.

The merger received approval from the Federal Communications Commission (FCC) two weeks ago, after mounting speculation over its viability. Political tensions surfaced during the approval process, particularly in relation to a legal settlement between Paramount and US President Donald Trump.

In early July, Paramount agreed to pay $16 million to the president following a complaint related to a “60 Minutes” interview with then-Vice President Kamala Harris, aired on CBS last year, as per the report.

The timing and nature of the settlement sparked criticism, with commentators raising concerns over editorial independence. The subsequent cancellation of The Late Show with Stephen Colbert added to the backlash, as Colbert had recently criticised the settlement on air. While the company cited financial reasons for ending the programme, the decision prompted questions both inside and outside Paramount.

As part of its regulatory filings, Skydance told the FCC it would monitor perceived bias at CBS News and appoint an ombudsman to review editorial complaints. The company also said it would undertake a comprehensive review of CBS to determine whether changes were required. It pledged to support a diversity of viewpoints across its media properties.

In a letter submitted to the FCC shortly before the deal was cleared, Skydance confirmed it had eliminated Paramount’s previous diversity, equity and inclusion (DEI) initiatives. The company stated that it had no plans to introduce similar programmes, citing recent judicial and regulatory developments in the US.

The future of CBS News remains under particular scrutiny following the settlement with Trump. Analysts also expect the merger to affect other Paramount properties, including its late-night programming. The merger was approved by a 2-1 FCC vote on July 24.