US regulators approve $8.4 billion Paramount-Skydance merger amid political firestorm

New Delhi: The Federal Communications Commission (FCC) has given the green light to Skype Media’s $8.4 billion acquisition of Paramount Global, a deal that places assets like CBS, Paramount Pictures, and Nickelodeon under the control of tech scion David Ellison. 

The approval, decided by a 2-1 partisan vote on July 24, marks the end of a tumultuous 250-day regulatory review clouded by accusations of political interference and concerns over media independence.

The merger, which creates a $28 billion media powerhouse, faced intense scrutiny following Paramount’s $16 million settlement with President Donald Trump over a disputed CBS “60 Minutes” interview. 

Critics, including US Senator Elizabeth Warren, labelled the payment a “bribe in plain sight” to secure regulatory approval, prompting calls for an investigation into potential impropriety. 

FCC Chairman Brendan Carr, a Trump appointee, dismissed any connection between the settlement and the merger’s approval, emphasising Skydance’s commitments to “unbiased journalism” at CBS, including the appointment of an ombudsman to address editorial bias complaints.

Skydance’s pledges also include a controversial decision to eliminate diversity, equity, and inclusion (DEI) programs at Paramount, aligning with Trump’s view that such initiatives are discriminatory. 

The deal ends the Redstone family’s decades-long reign over Paramount, which began with Sumner Redstone’s transformation of a drive-in theatre chain into a media empire. Shari Redstone, who became chair in 2019, navigated the sale through fierce competition from bidders like Sony Pictures and Warner Bros., as well as Paramount’s struggles with a declining market value and a challenging streaming landscape, despite Paramount+’s 79 million subscribers. 

David Ellison, son of Oracle co-founder Larry Ellison, will assume the role of chairman and CEO of the newly dubbed Paramount Skydance Corporation, with former NBCUniversal chief Jeff Shell as president.

Shareholders will receive cash or stock options—$23 per Class A share and $15 per Class B—offering liquidity amid Paramount’s financial woes. The deal, expected to close by October 5, 2025, after multiple deadline extensions, sets a precedent for navigating regulatory and cultural challenges in high-stakes media mergers.