The US Federal Communications Commission (FCC) has officially approved the $8.4 billion merger between Paramount Global and Skydance Media. This deal will join well-known names like CBS, Paramount Pictures, and Nickelodeon under new ownership.
The decision, finalised with the FCC’s grant of various licence transfer applications, marks a turning point for one of the oldest broadcast networks in the country, now set to undergo sweeping changes under new ownership.
The FCC agreed to transfer broadcast licences for 28 owned-and-operated CBS television stations to the new owners after Paramount paid $16 million to settle a lawsuit filed by US President Donald Trump over a “60 Minutes” interview with former Vice President Kamala Harris that aired in October.
FCC GIVES GO-AHEAD AFTER PROMISES OF FAIRNESS
The FCC’s approval came after Skydance and RedBird made promises to maintain journalistic integrity and fairness. The companies said they are committed to showing a wide range of views in their media coverage.
In support of that, Skydance will designate an impartial individual to investigate complaints of editorial bias, known as an ombudsman. The purpose of this action is to guarantee openness and foster viewer trust.
FCC Chairman Brendan Carr said, “Skydance’s commitment to make significant changes at the once-storied CBS broadcast network is welcomed. The new company has made written commitments to ensure its programming includes viewpoints from across the political and ideological spectrum.”
CHANGES IN PARAMOUNT’S POLICIES
Paramount terminated its diversity, equity, and inclusion (DEI) initiatives as part of the agreement. This modification supports the Trump administration’s stance that these kinds of policies are unjust. This action, according to Carr, is a step in the right direction towards ending “invidious forms of DEI discrimination.”
The decision to approve the merger was made in a 2-1 vote. Democratic Commissioner Anna Gomez was the only one to oppose it. She strongly criticized the deal, calling it harmful to press freedom and public interest.
“After months of cowardly capitulation to this Administration, Paramount finally got what it wanted,” Gomez said. “Unfortunately, it is the American public who will ultimately pay the price for its actions.”
She added, “Even more alarming, it is now imposing never-before-seen controls over newsroom decisions and editorial judgment, in direct violation of the First Amendment and the law.”
David Ellison, CEO of Skydance and son of Oracle co-founder Larry Ellison, is expected to become the chairman and CEO of the new Paramount. Jeff Shell, who used to lead NBCUniversal, will serve as the new president.
This deal also signals the end of the Redstone family’s long involvement with Paramount. Sumner Redstone had turned a chain of drive-in theaters into a powerful media company that once included TV, film, radio, and publishing.
His daughter, Shari Redstone, became Paramount’s chair in 2019 after reuniting CBS and Viacom, hoping to make the company stronger against rising competition from global entertainment giants. In recent years, Paramount has lost billions in market value as it struggled to keep up with the fast-changing world of streaming.
– Ends
With inputs from Agencies