On Thursday, July 24, 2025, the Federal Communications Commission (FCC) gave the green light to Paramount Global's $8 billion merger with Skydance Media, marking a pivotal moment in the entertainment and media landscape. This approval clears the final regulatory hurdle for a deal that has been months in the making, steeped in political controversy and corporate maneuvering.
The merger brings together Skydance, an independent film studio owned by David Ellison—the son of Oracle co-founder Larry Ellison—with one of Hollywood's oldest and most established companies, Paramount. Paramount's vast portfolio includes the CBS broadcast network, Paramount Pictures, Nickelodeon, BET, MTV, Comedy Central, and the Paramount+ streaming service. The newly combined entity is valued at approximately $28 billion, with a consortium led by the Ellison family and RedBird Capital investing $8 billion.
FCC Chairman Brendan Carr, a Trump appointee, hailed the merger as a necessary change for CBS, a network he described as "once storied" but now struggling to maintain public trust. "Americans no longer trust the legacy national news media to report fully, accurately, and fairly. It is time for a change," Carr said in a statement accompanying the approval. The FCC voted 2-1 in favor of the deal, with Commissioner Anna Gomez, the sole Democrat on the commission, dissenting. Gomez criticized the process as "cowardly capitulation" to the Trump administration and warned that the American public would ultimately bear the cost of these actions.
Central to the FCC's approval were commitments from Skydance to overhaul CBS's editorial practices. Skydance pledged to install an ombudsman at CBS News for at least two years to review complaints of bias and ensure fair, unbiased, and fact-based reporting. Additionally, the company promised a "comprehensive review" of CBS to implement any necessary changes and to foster a diversity of viewpoints across the political and ideological spectrum. Notably, Skydance also committed to ending diversity, equity, and inclusion (DEI) initiatives at CBS, aligning with the Trump administration's stance against such programs.
The merger's approval came on the heels of a highly publicized legal settlement between Paramount and former President Donald Trump. Trump had sued CBS over a "60 Minutes" interview with his 2024 presidential election opponent, Kamala Harris, alleging the network deceptively edited the segment to favor Harris and interfere with the election. Initially demanding $10 billion in damages, Trump later increased the claim to $20 billion, citing "mental anguish." However, Paramount maintained the lawsuit was without merit.
On July 1, 2025, Paramount agreed to a $16 million settlement with Trump, with the funds earmarked for his future presidential library and legal fees, notably without any apology or admission of wrongdoing. This settlement sparked widespread criticism, with some viewing it as a veiled bribe to secure regulatory approval for the merger. Senator Elizabeth Warren called it "bribery in plain sight," urging investigations and new rules to restrict donations to presidential libraries. Senators Edward Markey and Ben Ray Luján also condemned the deal, stating it "reeks of the worst form of corruption." FCC Commissioner Gomez echoed these concerns, accusing the FCC of exerting unprecedented control over newsroom decisions and editorial judgment, actions she deemed in violation of the First Amendment.
The controversy extended into CBS's programming decisions. Just days after the settlement, CBS announced the cancellation of "The Late Show" hosted by Stephen Colbert, who had openly criticized the settlement on air. The network cited financial reasons for the cancellation, but many questioned the timing and motives behind the decision. Colbert himself called the settlement "a big fat bribe."
Editorial independence concerns had been mounting at CBS even before the settlement. In April 2025, Bill Owens, then-executive producer of "60 Minutes," resigned, stating it was clear he would no longer be allowed to run the show as he had historically. CBS News CEO Wendy McMahon followed suit in May, stepping down amid disagreements over the company's direction. To steady the ship, CBS appointed Tanya Simon as the new top producer for "60 Minutes," a move seen as an attempt to calm internal anxieties ahead of the impending changes under Skydance's leadership.
David Ellison is set to take the helm as CEO of the restructured Paramount, emphasizing a transition to a "tech hybrid" model. This includes plans to revamp the Paramount+ streaming service and expand direct-to-consumer offerings, aiming to compete in an entertainment landscape marked by shorter attention spans and a proliferation of options.
The merger's completion is anticipated on August 7, 2025, according to statements from the companies. The FCC's approval also included the transfer of broadcast licenses for 28 CBS-owned television stations, solidifying Skydance's control over significant media assets.
While the deal signals a new chapter for Paramount and CBS, it also highlights the complex interplay between media, politics, and corporate interests in today's America. The merger's approval, shadowed by legal settlements and accusations of political influence, raises pressing questions about the future of editorial independence and media trustworthiness.
As Paramount and Skydance prepare to finalize their union, the industry and public alike will be watching closely to see whether the promised changes at CBS will restore faith in one of the nation's most influential news organizations or deepen existing divides.
