The recent $8 billion merger between Skydance Corporation and Paramount, the parent company of CBS News, has ignited a political firestorm and sent shockwaves through both the media industry and Capitol Hill. On August 21, 2025, two top House Democrats, Judiciary Committee Ranking Member Jamie Raskin (D-MD) and Energy and Commerce Committee Ranking Member Frank Pallone, Jr. (D-NJ), formally demanded answers from Paramount Skydance Corporation CEO David Ellison regarding what they described as deeply troubling payments and free services to President Donald Trump that allegedly took place in the run-up to the merger’s approval by the Federal Communications Commission (FCC).
According to The Hill and other outlets, the lawmakers’ concerns center on a $16 million settlement paid by Paramount to Trump to resolve his lawsuit over the editing of a “60 Minutes” interview with former Vice President Kamala Harris during the 2024 presidential campaign. CBS, for its part, denied any wrongdoing in the editing of the segment, but the settlement was ultimately earmarked for Trump’s future presidential library. In their letter to Ellison, Raskin and Pallone called the lawsuit “meritless” and wrote, “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 controversy doesn’t stop there. President Trump himself has publicly stated that he expects to receive “$20 Million Dollars more from the new Owners, in Advertising, PSAs, or similar Programming, for a total of over $36 Million Dollars.” This claim has only fueled suspicions that Skydance and Paramount may have offered payments and benefits to Trump in order to secure a favorable outcome from federal regulators. As reported by The Hill, Skydance offered free access to between $15 and $20 million worth of public service announcements (PSAs), a deal that was allegedly contingent on the FCC’s approval of the merger. Raskin and Pallone wrote, “This offer 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. 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 FCC, currently chaired by Brendan Carr—who was appointed to the role this year by Trump—approved the merger on July 24, 2025. Carr’s office is also investigating whether CBS engaged in “news distortion” in its coverage of the Harris interview. The timing and nature of these investigations, combined with the payments and policy changes, have only heightened scrutiny from lawmakers and media watchdogs alike.
In addition to the financial settlements and advertising commitments, the merger deal includes significant changes to editorial practices at the newly formed Paramount Skydance Corporation. The company pledged to eliminate what it calls “perceived bias” in its reporting, hire a new ombudsman to “root out” politicization, and scrap all diversity, equity, and inclusion (DEI) programs. Raskin and Pallone were blunt in their assessment: “The announcement of onboarding a new ombudsman to ‘root out’ such politicization is a poorly disguised attempt at censoring speech that contradicts the Administration’s ideals.”
The cancellation of “The Late Show with Stephen Colbert”—a program often critical of Trump—has also come under fire. Lawmakers and media critics argue that the show’s abrupt end, combined with the settlement and policy changes, suggest a broader pattern of editorial interference designed to curry favor with the Trump administration. As Raskin and Pallone wrote, “If Paramount forced out CBS’s longtime leaders, spent $16 million to settle a sham lawsuit with President Trump, or cancelled a highly popular comedy show that President Trump dislikes in order to curry favor with the Administration and to receive regulatory approval for the merger with Skydance, these actions would likely further embolden President Trump to use lawsuits and regulatory authority to attack media organizations that he finds objectionable in order to silence them.”
Skydance has firmly denied any wrongdoing. In a letter to a trio of U.S. senators dated July 31, 2025, Skydance’s general counsel stated, “Throughout its history and during the review of the proposed acquisition of Paramount, Skydance has fully complied with all applicable laws, including our nation’s anti-bribery laws.” CEO David Ellison, for his part, has sought to distance himself and the company from the political uproar. During a recent media event, Ellison said Skydance was not involved in the Trump settlement and emphasized, “I do not want to politicize our company in any way shape or form. We want to obviously speak to the biggest audience possible.” When asked about the new ombudsman’s potential impact, Ellison added, “I don’t think it’ll get to that.” Paramount’s new president Jeff Shell described the ombudsman as a “transparency vehicle, not an oversight vehicle,” clarifying that the process is internal and not subject to FCC or outside oversight.
Still, skepticism abounds. In addition to Raskin and Pallone, other lawmakers—including Sen. Adam Schiff, and Sens. Elizabeth Warren, Bernie Sanders, and Ron Wyden—have sent letters demanding answers from New Paramount regarding the Trump settlement and any side agreements. The lawmakers have requested a trove of documents and communications, including the Trump settlement agreement, any related correspondence with the White House, FCC, or Trump Organization, and evidence of any side deals involving advertising or PSAs. They have set a deadline of September 3, 2025, for Ellison and Paramount Skydance to respond.
The political and regulatory fallout from the merger has also played out in the financial markets. On August 21, 2025, Paramount Skydance shares surged more than 14%, continuing a streak of “meme stock” volatility after the company’s recent acquisition of programming rights to the UFC fighting league. However, broader market uncertainty remains. The S&P 500 slid 0.4% as investors awaited remarks from Federal Reserve Chair Jerome Powell, and several solar companies—including First Solar—saw their shares plummet after President Trump announced the U.S. would not approve new solar or wind projects due to high electricity costs. The merger’s approval, and the surrounding controversy, have clearly rippled far beyond the media industry.
As the September 3 deadline approaches, the stakes remain high. Lawmakers have vowed to continue their oversight, with Raskin and Pallone warning, “We will also continue to examine Paramount Skydance Corporation’s implementation and the FCC’s enforcement, under Chairman Brendan Carr’s leadership, of the merger conditions, with a special focus on any actions that appear to exceed the agency’s statutory authority.” The coming weeks will reveal whether the company’s actions withstand congressional scrutiny—or whether the merger will become a defining flashpoint in the ongoing debate over media independence, political influence, and government oversight.
All eyes are now on Paramount Skydance and the FCC, as the answers lawmakers seek could have sweeping implications for the future of American media and the integrity of the regulatory process.
