FCC Approves Paramount Sale to Skydance

The Federal Communications Commission (FCC) has granted approval for the sale of Paramount Pictures to Skydance Media, marking a significant step in a deal that has faced political scrutiny. This approval was considered a crucial hurdle for the transaction, especially given the political entanglements involving Paramount's ownership of CBS, which has been embroiled in disputes with former President Donald Trump.

Trump accused CBS of favorably editing an interview with Vice President Kamala Harris during the previous presidential campaign, a claim CBS has consistently denied. However, the network reportedly agreed to a settlement of $16 million, which some speculate was aimed at smoothing the path for the Paramount sale. The FCC has denied any connection between the settlement and the approval of the sale.

Additionally, CBS decided to cancel the late-night program hosted by Stephen Colbert, who has been known for his critical stance toward Trump. The FCC, which oversees media acquisitions, has been perceived as having lost some of its independence under the leadership of Brendan Carr, who was appointed by Trump. Carr has been accused of pressuring companies to abandon diversity programs, and it appears that similar concessions were made regarding the Skydance acquisition.

The planned acquisition, first announced in July, involves a multi-faceted deal worth over $8 billion, which includes stock and debt repayment. Skydance, led by film producer David Ellison, the son of Oracle founder Larry Ellison, has long been a production partner with Paramount and is seen as well-positioned to guide the company into its next growth phase.

Besides Skydance, other potential buyers included Warner Bros. Discovery and investment firm RedBird Capital. The deal also encompasses Paramount+, the streaming service that Paramount launched in Germany at the end of 2022.

Shari Redstone, the current owner of Paramount, expressed confidence in Skydance's ability to lead the company, stating that they have a clear strategic vision and the necessary resources to take Paramount forward.