So what’s going on with the Paramount x Skydance merger?

By Natalie Lifson, Agent Trainee and Executive Assistant at Buchwald and your co-Editor-in-Chief at THA

So what’s going on with the Paramount x Skydance merger?

On August 7th 2025, Skydance Media and Paramount Global announced that they completed their merger, officially becoming “Paramount, a Skydance Corporation.” The $8.4 Billion merger was first announced over a year ago in July 2024.

They stated in their 8/7 announcement: “The close of this transaction positions Paramount to forge a new path forward in the entertainment industry, combining its extensive creative library and global distribution network with Skydance's production expertise and industry-leading technological capabilities.”

They also released a new company description: “Paramount, a Skydance Corporation (Nasdaq: PSKY) is a leading, next‑generation global media and entertainment company, comprised of three business segments: Studios, Direct-to-Consumer, and TV Media. The Company's portfolio unites legendary brands, including Paramount Pictures, Paramount Television, CBS – America's most-watched broadcast network, CBS News, Nickelodeon, MTV, BET, Comedy Central, Showtime, Paramount+, Pluto TV, and Skydance's Animation, Film, Television, Interactive/Games, and Sports divisions.”

How is the FCC involved? What’s the controversy?

Skydance Media and Paramount Global couldn’t officially merge until the FCC approved it on July 24th, 2025. 

According to FCC Commissioner Anna M. Gomez, who opposed the merger’s approval but was outvoted, “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.”

There are two controversies surrounding its approval. 

1. Accusations of bribery and side deals.

The FCC approved the merger less than 1 month after Paramount Global paid $16 million to settle President Trump’s lawsuit against them for their 60 Minutes interview with Kamala Harris. 

Some allege this $16million settlement payment was an illegal bribe to push the merger through. 

President Trump and David Ellison (CEO of the new Paramount Skydance Corporation, and CEO of Skydance Media before the merger) have also been accused of an illegal “side deal” that involves Paramount granting $15-$20 million of ads to President Trump. On July 22, President Trump confirmed this in a Truth Social post, in which he said: 

“Paramount/CBS/60 Minutes have today paid $16 Million Dollars in settlement, and we also anticipate receiving $20 Million Dollars more from the new Owners, in Advertising, PSAs, or similar Programming, for a total of over $36 Million Dollars.”

Despite President Trump’s post, Paramount Skydance Corporation denies the allegations.

On Wednesday, 8/20, two House representatives launched an investigation into the matter.

2. The terms of the approval.

The terms included “the elimination of DEI (Diversity, Equity, & Inclusion) programs and putting controls on newsroom decisions at CBS.”

On July 22nd (2 days before the FCC approved their merger), Skydance responded to the FCC with two letters to reassure them that they will be meeting their demands and taking their concerns seriously. 

One letter addresses “concerns about media bias.” In this letter, they committed to create a new position to investigate “complaints of bias” against CBS News.

The other letter confirms “the elimination of diversity, equity, and inclusion (DEI) initiatives that were in place at Paramount and to confirm our commitments moving forward.” This comes after FCC Chairman Brendan Carr’s May statement that the merger would only be approved if Paramount and Skydance remained committed to keeping all forms of DEI efforts out of the new company.

Dissenting FCC Commissioner Gomez called the deal an “assault on the First Amendment.” 

What happens next?

1. Layoffs

There have already been some layoffs at Paramount, but we can expect even more, adding up to at least $2 billion and around 2,500-3,000 jobs, beginning in November. Layoffs are expected to happen all at once. “We do not want to be a company that has layoffs every quarter,” said Paramount President Jeff Shell. “So, it is important for us to get done what we’re doing in one big thing and then be done with it.”

2. Restructuring

Chairman and CEO David Ellison released a letter outlining new plans for Paramount Skydance Corporation.

The new company will consist of three business units: 

1. Studios

2. Direct-to-Consumer

3. TV Media.

3. New Strategy

Per the letter, they plan to create a higher volume of premium, exclusive content, invest more in streaming, and strategically use AI. 

Paramount President Jeff Shell stated, “we’re thinking about the cable networks not as declining linear assets that we need to spin off or deal with somehow. We’re thinking of them as brands that we have to redefine.”

According to Cindy Holland, head of the Paramount+ team, going forward they’re “going to be buying from third parties” and will be experimenting with different release strategies. 

According to George Cheeks, Paramount’s Chair of TV Media, who manages all linear networks, CBS as well as Paramount Media Networks’ MTV, Comedy Central, Nickelodeon, BET, and more, “there’ll be a lot of conversations about what iconic franchises we want to continue, shift maybe to streaming, etc.”