FCC Approves $8 Billion Skydance-Paramount Global Merger, Paving Way for "Dramatic" Changes
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The Federal Communications Commission (FCC) has officially approved the $8 billion merger between Skydance Media and Paramount Global, concluding a year of regulatory scrutiny and political controversy. The landmark deal is expected to close in early August, ushering in a significant restructuring of the legacy media conglomerate.
Entertainment journalist Matt Belloni, a founding partner at Puck, anticipates "pretty dramatic moves" from Skydance once the merger is finalized. Belloni suggests that Skydance may consider selling off Paramount Global's cable networks and implementing up to $2 billion in cost cuts through layoffs and restructuring across CBS and other linear TV assets. The post-merger strategy, which Skydance has been developing for approximately a year, also includes potentially merging Paramount+ and Pluto TV under Cindy Holland's leadership, focusing on lower-cost, scalable content.
The acquisition sees Skydance, led by David Ellison, son of Oracle founder Larry Ellison, taking control of Paramount's extensive portfolio, including CBS, Paramount Pictures, and Nickelodeon. RedBird Capital Partners, led by Gerry Cardinale, is a key investor, contributing $1.8 billion to the deal. The new ownership aims to transform Paramount into a "leaner, more profitable media-tech hybrid" and address its substantial $14 billion debt.
The merger faced political headwinds, notably a $16 million settlement paid by Paramount to Donald Trump over a "60 Minutes" segment. The FCC's approval, decided by a 2:1 vote along partisan lines, drew criticism from a dissenting Democratic commissioner who raised concerns about press freedom. In response, Skydance has committed to "unbiased journalism" and the elimination of Diversity, Equity, and Inclusion (DEI) initiatives, pledging to appoint an ombudsman to evaluate complaints of bias at CBS News.
This strategic shift is poised to end years of uncertainty under Shari Redstone's leadership, with analysts like Robert Fishman of MoffettNathanson suggesting the merger could create long-term value if Skydance effectively executes its plans for operational efficiency and streaming growth. The focus will now turn to how the new leadership navigates the evolving media landscape and implements its ambitious restructuring.