The FCC just cleared the final regulatory hurdle for the $8 billion Paramount-Skydance merger, voting 2-1 to approve the transfer of licenses for 28 CBS-owned local stations. With that, David Ellison’s Skydance Media is officially on track to take over Paramount Global in the coming weeks. The agency’s approval caps a year of negotiations, layoffs, and political pressure, as the company and regulators wrestled over the terms of one of the most scrutinized media mergers in recent memory.
Brendan Carr, who led the FCC vote, praised Skydance’s commitments to “revitalize” CBS and promote what he called viewpoint diversity. That included shuttering DEI programs and appointing an ombudsman to oversee perceived media bias. These concessions were laid out in formal letters to Carr earlier this week. He welcomed the merger as a reset for a company he says has lost public trust. The lone dissenting vote came from Anna Gomez, who sharply criticized the agency for pressuring Paramount into settling Donald Trump’s lawsuit over a “60 Minutes” interview. Gomez warned that the FCC’s moves here risk chilling editorial independence.
From a business perspective, the FCC backed Skydance’s argument that the deal would stabilize Paramount’s finances and make it more competitive. With $14.6 billion in long-term debt and weakening linear revenue, Paramount needs capital. Skydance has committed $1.5 billion in fresh funding and laid out a plan to modernize operations and upgrade its streaming services. That includes using AI to improve recommendations on Paramount+ and better ad tech to serve marketers. It also called out Pluto TV as a key opportunity area for growth under the new structure.
Under the deal, Larry Ellison, RedBird Capital and Skydance will acquire Shari Redstone’s National Amusements, which holds majority voting control in Paramount. The merged entity, to be called Paramount Skydance Corp., will remain publicly traded but effectively controlled by the Ellison family. David Ellison will become CEO, with Jeff Shell installed as president. Shari Redstone exits the board with a $1.75 billion payout.
Internally, the last year has been turbulent. The merger was in limbo pending regulatory approval, prompting sweeping cost cuts. Paramount’s three co-CEOs—George Cheeks, Chris McCarthy and Brian Robbins—moved to trim $500 million in annual costs through layoffs and restructuring. They also restructured their contracts to ensure exit packages if ousted post-deal or demoted. With the close now imminent, that outcome seems likely.
The deal closes a chaotic chapter for Paramount, with political controversy, internal dissent, and corporate uncertainty all converging. But it also opens a new one, with David Ellison now in charge of turning around a legacy brand with serious relevance issues and an urgent need to scale in a streaming-first economy.
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