President Donald Trump announced he anticipates receiving $20 million in advertising and public service ad commitments from Skydance Media, the company currently in the process of acquiring CBS parent Paramount Global. This development, reported by The Wall Street Journal, comes as the significant media merger navigates complex regulatory approvals and past legal disputes.
The anticipated $20 million commitment from Skydance Media to President Trump adds a new dimension to the ongoing acquisition of Paramount Global. While the specific nature and terms of these advertising and public service commitments were not immediately detailed, the announcement emerges amidst heightened scrutiny of the media landscape.
Skydance Media and Paramount Global reached a definitive agreement on July 7, 2024, to form "New Paramount" in a multi-phase transaction valued at an estimated $28 billion. The deal involves Skydance acquiring National Amusements, Paramount's controlling shareholder, for $2.4 billion in cash, followed by an all-stock merger with Paramount Global. The merger aims to create a next-generation media and technology leader.
The acquisition has faced considerable regulatory hurdles, including ongoing review by the Federal Communications Commission (FCC). FCC Chairman Brendan Carr has previously indicated that a complaint regarding a "60 Minutes" interview, which drew criticism from a conservative group, could influence the merger's approval.
Skydance CEO David Ellison, son of tech billionaire Larry Ellison, a known supporter of President Trump, has publicly addressed concerns about editorial independence. Ellison reportedly told federal officials that CBS would reflect "varied ideological perspectives" and pursue an "unbiased" editorial direction, aiming to focus on "American storytelling."
The $20 million commitment also surfaces following a period of legal contention between President Trump and CBS, including a $20 billion lawsuit over the editing of a "60 Minutes" interview. While that lawsuit has reportedly been settled, observers have suggested that resolving such disputes is crucial for clearing the path for the Skydance-Paramount merger.
The strategic rationale behind the merger emphasizes leveraging the strengths of both companies to enhance their competitive positioning against industry giants like Netflix and Disney. The combined entity would encompass broadcasting with CBS Entertainment, Paramount Pictures, streaming services like Paramount+, and expand into interactive gaming.
The deal's completion remains subject to regulatory approvals and customary closing conditions, with the companies anticipating a close in the first half of 2025. The commitment from Skydance to President Trump introduces a notable element into the final stages of this high-profile media consolidation.