In a 2-1 vote, the Federal Communications Commission on Thursday granted approval for Skydance’s $8 billion acquisition of Paramount Global and subsidiaries, including CBS.
The transaction was brought up for a full Commission vote, with FCC Chairman Brendan Carr and recently confirmed Republican Commissioner Olivia Trusty voting in favor and Democratic Commissioner Anna Gomez dissenting.
FCC approval represents clearing a major hurdle on what’s been a rocky road for the media company’s transaction that was first announced a year ago and comes after commitments by Skydance to the FCC about changes to the CBS News division and Paramount post-merger.
Paramount is the parent of CBS, which was embattled in a lawsuit brought on by U.S. President Donald Trump related to claims about alleged editing practices over a 60 Minutes interview segment with then-U.S. Vice President Kamala Harris. Paramount settled that lawsuit earlier this month, agreeing to a $16 million payout to be paid to Trump’s future presidential library along with other concessions.
Before getting the FCC greenlight, Skydance earlier this week sent letters to FCC Chairman Carr to make commitments, including changes around CBS news operations, which it said was to “address concerns about media bias” that had been raised in the proceeding.
Those commitments include putting an ombudsman in place for at least two years who reports to the president of the combined Paramount to “receive and evaluate any complaints of bias or other concerns involving CBS.”
The FCC release about regulatory approval also said that Skydance, which does not have diversity, equity and inclusion (DEI) programs in place today, committed that will not establish DEI initiatives at the new company. Those types of efforts have become a target of the FCC under the Trump administration, and Carr in a statement said the approval decision “marks another step forward in the FCC’s efforts to eliminate invidious forms of DEI discrimination.
Skydance’s letter to the FCC committing to not establish DEI at the new company, it said that while “Paramount must have a highly talented, dedicated and creative workforce that understands the perspectives and experiences of its varied audiences,” recent Executive Orders, a Supreme Court decision and federal mandates “impact the company’s approach to those objectives.”
Carr in a statement applauded the commitments around broadcast news programming at CBS , saying that Americans no longer trust the legacy national news media.
“That is why I welcome Skydance’s commitment to make significant changes at the once storied CBS broadcast network,” stated Carr. “In particular, Skydance has made written commitments to ensure that the new company’s programming embodies a diversity of viewpoints from across the political and ideological spectrum. Skydance will also adopt measures that can root out the bias that has undermined trust in the national news media.”
However, not everyone on the Commission sees Skydance’s commitments or the FCC’s approval in the same light – with Commissioner Gomez saying in a dissenting statement that the agency overstepped its authority and Paramount bent to pressures from the Trump administration – including the settlement payout for what the commissioner characterized as a “baseless lawsuit.”
“After months of cowardly capitulation to this Administration, Paramount finally got what it wanted,” Gomez stated. “Unfortunately, it is the American public who will ultimately pay the price for its actions.”
Gomez said she was pleased the FCC ultimately agreed for a full commission vote at her request – which was also urged by two democratic US Senators following the Paramount-Trump settlement – but contends the government is abusing its power and called the approval “reckless.”
“In an unprecedented move, this once-independent FCC used its vast power to pressure Paramount to broker a private legal settlement and further erode press freedom,” Gomez stated. “Once again, this agency is undermining legitimate efforts to combat discrimination and expand opportunity by overstepping its authority and intervening in employment matters reserved for other government entities with proper jurisdiction on these issues. Even more alarming, it is now imposing never-before-seen controls over newsroom decisions and editorial judgment, in direct violation of the First Amendment and the law.”
Energy and Commerce Committee Ranking Member Frank Pallone, Jr. (D-NJ) also issued a statement blasting the FCC approval as blatant corruption.
“With this announcement, it’s clear that the FCC is in Trump’s pocket and that Skydance and Paramount have been engaging in a quid pro quo for months,” Pallone stated, adding that he’ll “be launching an investigation into the circumstances of this approval, including the conduct of the FCC, Skydance and Paramount.”
As for Paramount, which along with traditional cable networks, local broadcast stations and studio operations counts streaming assets Paramount+ and Pluto TV, it’s poised to get new ownership under Skydance alongside a $1.5 billion investment.
The FCC approval release noted that Skydance reaffirmed its commitment to serving local communities as a core component of meeting the public interest standard for approval and intends to work closely with affiliated broadcast stations.