Entertainment company Paramount Global is set to close its $8 billion merger agreement with SkyDance Media on August 7th.
On Friday, the companies announced the final stages of their one-year deal, which was first announced in July 2024.
The merger is considered a massive reform in the US media landscape and ends the powerful Redstone family’s reign over the Paramount Entertainment Empire.
However, the merger has attracted even more attention in recent weeks due to its political background.
On Thursday, the Federal Communications Commission (FCC) gave the merger a green light to move forward after a series of moves under Paramount, which was widely interpreted as a concession to the Trump administration.
The FCC is technically an independent federal agency, but since taking office in January for a second term, President Trump has sought such agencies under his influence, including appointing loyal allies to leadership.
This has made the fate of the Paramount ski dance merger a problem, especially given its struggle with Trump with CBS Broadcasting Inc, one of Paramount’s best properties.
Competition over content
Trump has long adopted a hostile approach to news media, and CBS’ flagship news program has been no exception.
Some of these tensions came to mind in the final weeks of the 2024 presidential election, when Republican Trump was playing against Democratic candidate Kamala Harris.
TV News Magazine 60 Minutes has a tradition of participating in the vote for each presidential candidate, and invited both Trump and Harris to participate.
Harris accepted the invitation, but said Trump had cancelled the scheduled interview for 60 minutes. Trump spokesman Stephen Chong disputed the characterization.
“We had initial discussions, but nothing was planned,” Cheung wrote on social media. “They also insisted on doing fact-checking live, which is unprecedented.”
It escalated back and forth as 60 minutes aired two different cuts from an interview with Harris.
One version aired in the Sister Programme took up more Harris’ answers about her attitude towards Israel. Another version, which aired in a 60-minute broadcast, has been shortened.
Trump filed a lawsuit against CBS parent company Paramount, calling evidence from various compilations of fraudulent reporting tactics.
“CBS crossed the line from using domestic platforms in 60 minutes to exercise its judgment when reporting to news deceitful, deceptive operations,” his court filed.
“That’s wrong,” he responded for 60 minutes in a statement on the website.
“When editing interviews, whether it be politicians, athletes, movie stars, etc., we strive to be clear, accurate and point.
Many media experts expected Paramount to win the merits of the incident, but instead the company tried to negotiate the end of the matter. Earlier this month, he agreed to pay Trump $16 million to go to his future presidential library.
Shortly afterwards, another top CBS show, the Late Show with Stephen Colbert, revealed that it had been cancelled for financial reasons.
However, the timing and unexpected nature of the cancellation led to speculation that it might be an attempt to appease Trump and streamline the merger, given the fact that Colbert frequently denounced the Republican president on his show.
Trump himself posted on True Social.
Late Show was a consistent top-rate late-night comedy show, winning Peabody Awards and multiple Emmy nods.
A few days later, on July 22nd, Trump called for more comedians to be banished, saying, “It’s really good to see them go. I hope they played a big role in it!”
That same day, he confirmed he received $16 million in the 60-minute settlement, adding that he expects to receive another $20 million in free ads and programming from the “new owner.”
South Park TV shows aim
Within weeks of both the 60-minute litigation settlement and the cancellation of the Late Show, the FCC congratulated the Paramount and Skydance merger.
Under the merger, David Ellison, the founder of Skydance, son of Oracle Corporation CEO Larry Ellison, will be at the helm.
Following approval of the merger, Trump’s appointee Brendan Kerr, who leads the FCC, issued a statement reflecting some of the president’s criticism of major press.
He also suggested that the merger would change CBS news output.
“Americans no longer trust legacy national news media to report completely, accurately, and fairly,” he writes. “Now is the time for change, so we welcome Skydance’s commitment to making major changes on the once-prominent CBS broadcasting network.”
“In particular, Skydance has made a written commitment to ensure that the programming of the new company embodies diverse perspectives from the entire political and ideological spectrum.”
To ensure compliance with that commitment, Kerr said the Ombudsman will be appointed as the media giant for at least two years.
Carr added that the merger of Skydance and Paramount may also prohibit the implementation of diversity, equity and inclusion (DEI) policies designed to create a level playing field for people, regardless of age, gender, race, ethnicity, religion or ability.
However, the merger did not end Trump’s scrutiny on the Paramount platform.
Hours after the FCC granted approval, TV channel Comedy Central aired an episode of the animated series South Park, which chuckled President Trump and met a $16 million settlement from its parent company.
In one scene, an animated Jesus tries to warn the characters in the show about playing cards.
“A man can do whatever he wants now that someone has retreated, OK?” Animation Yes says. “Did you guys see what happened to CBS? Yeah, who do you think owns CBS? Paramount! Do you really want to be like Colbert?”
The Trump administration has since accused Shaw of being irrelevant.
