On August 20, 2025, the political and media worlds collided in spectacular fashion as House Democrats launched a sweeping inquiry into the controversial $8 billion merger between Paramount Global and Skydance Media. The investigation, spearheaded by Representatives Jamie Raskin of Maryland and Frank Pallone Jr. of New Jersey, zeroes in on whether the companies caved to what lawmakers call "illegitimate demands" from President Donald Trump in a bid to secure regulatory approval for the blockbuster deal. The probe’s scope is broad, but its focus has sharpened on a series of eyebrow-raising decisions—most notably, the abrupt cancellation of CBS’s top-rated late-night program, The Late Show with Stephen Colbert.
According to reporting from The Hill, CNBC, and other outlets, the House Energy and Commerce Committee and the Judiciary Committee—both of which oversee the Federal Communications Commission (FCC)—are demanding answers from David Ellison, CEO of the newly merged Paramount Skydance Corporation. In a letter sent Wednesday, August 20, the lawmakers called for a trove of documents, internal correspondence, and all communications with President Trump or his representatives. The request is not just a fishing expedition; it’s a direct response to what Democrats describe as a pattern of suspicious behavior leading up to the FCC’s green light for the merger in late July.
“Illegitimate demands from the [Federal Communications Commission] or the Administration do not absolve your company from wrongdoing,” wrote Raskin and Pallone, as reported by CNBC. Their letter, which gives Ellison until September 3 to respond, highlights a $16 million settlement Paramount paid to Trump to end a lawsuit against CBS News. The suit stemmed from a 60 Minutes interview Trump claimed was deceptively edited to benefit then-campaign rival Kamala Harris, a claim Paramount has denied, insisting the editing process was standard. The timing of the settlement—just weeks before the FCC’s approval—has raised red flags among lawmakers, who suggest it may have functioned as a de facto bribe.
The letter pulls no punches: “The settlement raises significant concerns that Donald Trump demanded and Paramount paid an illegal bribe—a $16 million payment to the President in exchange for merger approval from the FCC.” The lawmakers further argue, “For both Paramount and Skydance to acquiesce to President Trump’s meritless claims in order to consummate the merger demonstrates an extreme disregard to anything that might stand in the way of profit.”
But the settlement is only the tip of the iceberg. Lawmakers are also probing Trump’s public assertion that Skydance agreed to provide him with millions of dollars’ worth of free public service announcements (PSAs) and advertising as part of a "side deal." Trump has claimed he expects another $20 million in "Advertising, PSAs, or similar Programming" from the "new Owners." While Skydance sources have denied making such a promise, the House inquiry notes that “there is evidence that you had multiple conversations with the President leading up to the deal being approved by the FCC.” According to Bloomberg, the lawmakers warn that if these benefits were indeed contingent on regulatory approval, they “would run afoul of federal and state anti-bribery statutes.”
The investigation’s political undertones are impossible to ignore, particularly in light of the sudden axing of The Late Show with Stephen Colbert. The show, hosted by a vocal Trump critic, was one of CBS’s most successful programs. Its cancellation, announced just as the merger was moving forward, has become a flashpoint in the Democrats’ inquiry. Raskin and Pallone’s letter connects the dots, suggesting the move was part of a broader strategy to “silence” critical media voices and “placate the President.”
Adding fuel to the fire, the lawmakers cite reporting that Skydance agreed to make changes to CBS and its editorial practices that would align with the Trump Administration’s political agenda. This includes hiring an ombudsman “to police the news organization’s editorial choices”—a move the letter characterizes as “a poorly disguised attempt at censoring speech that contradicts the Administration’s ideals.”
According to CNBC, FCC Chairman Brendan Carr defended the merger’s approval, stating that Skydance had made “written commitments to ensure that the new company’s programming embodies a diversity of viewpoints from across the political and ideological spectrum.” Carr also noted that the merger advanced the FCC’s efforts to eliminate diversity, equity, and inclusion (DEI) initiatives, a position that has become a political lightning rod in its own right.
While CBS and Skydance have maintained that the decision to cancel The Late Show was “purely financial,” skepticism abounds. The timing, coupled with the network’s $16 million payout to Trump and alleged editorial concessions, has only intensified scrutiny. “The reported ‘side deal’ with Trump was necessarily contingent on the FCC approving the deal and does not appear to present any legitimate value to the public, only to President Trump,” the lawmakers wrote. “Therefore, this appears to be an offer of payment and benefits to a government official designed to achieve a specific outcome from the government—in other words, a bribe.”
The investigation is not limited to the House. Earlier this week, Senator Adam Schiff launched a parallel inquiry, raising similar concerns about political interference and the integrity of the FCC’s regulatory process. Schiff’s letter to FCC Chair Brendan Carr called the situation a “dangerous precedent of political interference,” echoing the House Democrats’ alarm.
Paramount Skydance has so far declined to comment on the record, and Skydance executives have denied any involvement in the late-night shakeup or in providing special favors to Trump. Yet, the pressure is mounting. The lawmakers’ demand for internal records, spanning communications with the White House, the FCC, and the Trump Organization, signals that this is more than just political theater—it’s a high-stakes test of the boundaries between media, government, and business in an era of deepening polarization.
As the September 3 deadline for Ellison’s response approaches, all eyes are on how the newly merged media giant will address the allegations. The outcome could have far-reaching implications—not just for Paramount Skydance, but for the future of media independence and the integrity of the regulatory process itself. For now, the investigation stands as a stark reminder of the tangled web that connects politics, big business, and the media, especially when billions of dollars and the White House are in the mix.
