The $8 billion merger between Paramount Global and Skydance Media has received approval from the U.S. Federal Communications Commission (FCC), paving the way for one of Hollywood's oldest studios to join forces with the independent film company. Initially announced in 2024, the deal will transfer the broadcast licenses of 28 CBS-owned television stations to Skydance, which is led by David Ellison, son of Oracle founder Larry Ellison. Although Paramount has not disclosed a completion date, the merger is expected to finalize soon.

The FCC’s decision followed Paramount Global’s recent $16 million settlement of a lawsuit with U.S. President Donald Trump. The legal dispute centered around a CBS interview with former Vice-President Kamala Harris on the 60 Minutes program, which Trump alleged had been deceptively edited to favor the Democratic Party. While Paramount maintained that the lawsuit was unrelated to the merger, reports from the Wall Street Journal and New York Times suggested that resolving the lawsuit helped clear the path for regulatory approval, as Trump technically held influence over the FCC review process. The settlement funds will go toward Trump’s future presidential library rather than being paid to him directly.

FCC Chair Brendan Carr, appointed by Trump, welcomed Skydance’s planned reforms for CBS, including commitments to unbiased journalism and the installation of an ombudsman to review bias complaints. The company has also pledged to roll back diversity, equity, and inclusion initiatives, aligning with the Trump administration’s policies. The merger was approved in a 2-1 vote, with Democratic Commissioner Anna Gomez dissenting, warning that the public might ultimately bear the cost of these corporate moves.

The merger comes amid a period of financial struggle for Paramount, which has faced declining performance despite owning major brands such as Paramount Pictures, CBS, Nickelodeon, BET, MTV, Comedy Central, and its streaming platform Paramount+. The company also recently announced the cancellation of ‘The Late Show with Stephen Colbert,’ citing financial pressures in late-night television rather than the show's content or ratings.

Political backlash has accompanied the merger approval. Senator Elizabeth Warren (D-MA) accused Paramount and Skydance of effectively paying $36 million to Trump to ensure the deal’s approval, suggesting potential corporate bribery. She has called for further investigation into whether the settlement and other payments, including commitments to public service announcements and advertising reportedly valued at up to $20 million, violated anti-bribery laws.

“Bribery is illegal no matter who is president. It sure looks like Skydance and Paramount paid $36 million to Donald Trump for this merger, and he’s even bragged about this crooked-looking deal. I’ve been ringing the alarm bell for months, launching a Senate investigation into possible corruption, and this merger must be investigated for any criminal behavior. It’s an open question whether the Trump administration’s approval of this merger was the result of a bribe,” Warren said in a statement.

Within Paramount, leadership changes are imminent. Chris McCarthy, co-CEO of Paramount Global and president of Showtime/MTV Entertainment, is expected to leave the company once the merger closes, likely early next month. McCarthy, a 22-year veteran of Paramount and Viacom, played a key role in steering the company during turbulent times, including multiple rounds of layoffs and the strategic push to boost streaming. George Cheeks, president of CBS, is likely to stay on, while Brian Robbins, president of Paramount Pictures and Nickelodeon, is also set to exit.

During his tenure, McCarthy oversaw a significant expansion of Paramount+, which gained 10 million new subscribers in 2024, reaching 77.5 million and putting the platform on track for U.S. profitability in 2025. He was instrumental in securing high-profile talent deals, including a $200 million overall agreement with creator Taylor Sheridan, whose ‘Yellowstone’ franchise alone is now valued at $3 billion. Sheridan, who has credited McCarthy for Paramount’s success with his series, has expressed hope that McCarthy would remain in the new organization. However, Skydance’s leadership plans remain unclear. Keith Cox, who has long collaborated with Sheridan, could potentially stay on, but Nina L. Diaz, chief creative officer and president of content for Showtime/MTV Entertainment, is expected to depart.

McCarthy’s influence extended beyond streaming, as he orchestrated deals with ‘The Daily Show’ host Jon Stewart, as well as ‘South Park’ creators Trey Parker and Matt Stone for five additional seasons. He also championed hits such as ‘Yellowjackets’ and new installments of the ‘Dexter’ franchise, which delivered record viewership for Showtime.

Paramount Global’s roots date back to 1914 with the founding of Paramount Pictures, which has produced iconic film franchises such as ‘The Godfather,’ ‘Star Trek,’ and ‘Mission: Impossible.’ Yet the company’s recent challenges made it a prime acquisition target for Skydance, which now aims to reshape the combined entity’s media and entertainment strategy under David Ellison’s leadership.

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