Trump lawsuit, DEI cuts, ombudsman; what’s changing after $8.4 billion Paramount‑Skydance merger

The US Federal Communications Commission (FCC) has approved an $8.4 billion merger between Paramount Global and Skydance Media, ending months of uncertainty. The decision clears the way for CBS, Nickelodeon, and Paramount Pictures to come under new ownership.

It will be the start of a new family dynasty at Paramount, historically run by the Redstone family. When the deal closes, David Ellison, son of billionaire Larry Ellison, will take control.

As part of the approval, the FCC agreed to transfer licences for 28 CBS-owned television stations to Skydance. The move followed a $16 million settlement by Paramount to resolve a lawsuit filed by President Donald Trump over a 2024 "60 Minutes" interview with then-Vice President Kamala Harris. The FCC's approval came despite criticism from within the agency.

Skydance pledges editorial fairness

To secure the green light, Skydance and RedBird Capital promised to maintain journalistic integrity. The company will appoint an ombudsman to review complaints of editorial bias and ensure coverage reflects a range of political and ideological views.

FCC Chairman Brendan Carr praised the move, saying, “It is time for a change. Skydance’s commitment to make significant changes at the once-storied CBS broadcast network is welcomed.”

As part of the agreement, Paramount will end its diversity, equity, and inclusion (DEI) programs.

The move aligns with the Trump administration’s view that such initiatives are discriminatory. Carr called the decision a step toward ending "invidious forms of DEI discrimination."

Internal opposition and press freedom concerns

Democratic FCC Commissioner Anna Gomez opposed the merger, calling it harmful to press freedom. She criticised the agency for using its power to push Paramount into a legal settlement and accused it of enabling political influence over newsroom decisions.

“Even more alarming, it is now imposing never-before-seen controls over editorial judgment, in direct violation of the First Amendment,” she said as quoted by India Today.

Leadership changes

David Ellison, CEO of Skydance and son of Oracle co-founder Larry Ellison, is expected to lead the new Paramount.

Former NBCUniversal head Jeff Shell will become president. The merger also puts the future of several current Paramount executives in doubt, with reports of upcoming cost cuts.

The deal, first announced in July 2024, faced delays and scrutiny but eventually moved forward after no higher bids emerged.

The merger officially ends the Redstone family's decades-long influence over Paramount, once shaped by Sumner Redstone and later led by his daughter, Shari Redstone.