FCC approves merger between Skydance and Paramount after reaching compromise on journalistic fairness and elimination of DEI programs

The Federal Communications Commission (FCC) finally cleared Skydance Entertainment's acquisition of Paramount Global in a deal worth more than $8 billion that, according to people close to the negotiations, could close in the next few weeks.

The will merges Skydance—a film and television production company known for films such as Top Gun: Maverick, Star Trek Into Darkness, and Mission Impossible—with Paramount Pictures—parent company of the famed CBS News TV network and channels such as MTV, Nickelodeon, and Comedy Central.

According to various analysts, the merger is a clear strategy to compete with giants such as Apple, Amazon, and Netflix.

The FCC approval comes after Skydance made a written commitment to ensure "fair, unbiased, and fact-based coverage" journalism at CBS News, revealed the agency's chairman, Brendan Carr, an ally of President Trump.

According to Carr, Skydance agreed to create an ombudsman position for at least two years to oversee allegations of editorial bias. Also, following the FCC leader's lead, the new corporate structure will eliminate all diversity, equity, and inclusion (DEI) initiatives.

"Americans no longer trust the legacy national news media to report fully, accurately, and fairly. It is time for a change," Carr said in announcing the FCC's official decision. "That is why I welcome Skydance’s commitment to make significant changes at the once storied CBS broadcast network. 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."

The final FCC vote was 2-1, with Democratic Commissioner Anna Gomez voting no, who accused the agency of "imposing never-before-seen controls over newsroom decisions and editorial judgment, in direct violation of the First Amendment and the law."

Trump and CBS at the center of the merger

The merger coincides with a major political tension between Trump and CBS.

Earlier this month, Paramount agreed to pay $16,000,000 to settle a lawsuit by the Republican president, who accused the "60 Minutes" program of manipulating an interview with former vice president and Democratic candidate Kamala Harris to, he alleged, make her look good in the midst of an election campaign.

Trump also claimed on Truth Social that he expects to receive advertising commitments valued at $20,000,000 from Skydance, although the company has not commented on those statements, at least publicly.

In parallel, the CBS network announced that it will cancel Stephen Colbert's Late Show in 2026, citing alleged financial reasons.

Following the show's cancellation, some Hollywood figures and congressional Democrats speculated that the move could be related to the Skydance merger, recalling the host's strong criticism of Trump.

The president, despite the noise against him, was quick to celebrate the news: "I absolutely love that Colbert was fired."

A profound restructuring

According to The Wall Street Journal, after the closing of the merger, Jeff Shell, former NBCUniversal and Fox executive, will assume the presidency of the new company, while Cindy Holland, former Netflix executive, will be in charge of the streaming division.

Meanwhile, George Cheeks, co-chairman of Paramount and head of CBS, will remain with the new group, but Brian Robbins, head of the film division, will likely step down, the newspaper reported.

The Skydance deal, initiated in 2023 with on-and-off negotiations with Shari Redstone—Paramount's majority shareholder—was solidified in July 2024 and finally received federal endorsement this month, leaving behind an extensive process that had many hurdles along the way. The deal includes a $1.5 billion investment to strengthen CBS's production and local news coverage.