FCC Approves $8B Paramount-Skydance Merger: Carr Hails CBS Changes & DEI Ban in 2-1 Vote

Q: Why was Stephen Colbert's show canceled?

CBS insists it lost $40–50 million yearly. But the timing—days after Colbert mocked Paramount's Trump deal—raised eyebrows.

FCC Approves $8B Paramount-Skydance Merger: Carr Hails CBS Changes & DEI Ban in 2-1 Vote

Key Takeaways

The FCC approved Paramount’s $8 billion sale to Skydance Media by a 2-1 vote, transferring CBS licenses amid political controversy .
Paramount paid $16 million to settle Trump’s lawsuit over a 60 Minutes interview weeks before approval .
Skydance agreed to eliminate DEI programs and install a CBS ombudsman to address bias complaints .
Critics like FCC Commissioner Anna Gomez called the merger a “cowardly capitulation” threatening press freedom .
Stephen Colbert’s show was canceled days after mocking Paramount’s Trump settlement .

The FCC’s Landmark Approval

Federal regulators greenlit one of Hollywood’s biggest deals yesterday. The FCC voted 2–1 to let Skydance Media buy Paramount Global for $8 billion. That transfer hands CBS’s 28 local TV stations, Paramount Pictures, and networks like Nickelodeon to David Ellison’s Skydance . Chair Brendan Carr emphasized Skydance’s $1.5 billion cash injection would stabilize Paramount’s finances. They’ve been drowning under $14.6 billion debt, honestly, while streaming wars gutted profits . But Carr’s praise for “diversity of viewpoints” hinted this wasn’t just ’bout money.

Table: Merger Terms Breakdown

Table titled 'Paramount Acquisition Details' with rows for Purchase Price: $8.4 billion, Key Assets: CBS, Paramount Pictures, Nickelodeon, MTV, Debt Assumed: $14.6 billion, Cash Injection: $1.5 billion from Skydance, FCC Vote: 2-1 (Gomez dissenting)."

Trump’s Lawsuit and the $16 Million Settlement

Here’s where things get messy. Just weeks before the vote, Paramount settled a lawsuit with Donald Trump. He’d sued over an October 60 Minutes interview with Kamala Harris, claiming edits misrepresented him . The network paid $16 million toward his presidential library, though Trump later bragged about “over $36 Million” in perks like free ads . FCC leaders insisted the settlement wasn’t linked to merger approval. But staff at CBS News felt betrayed; they saw the suit as baseless, and the payout like hush money .

The Concessions: Ombudsmen and Scrapped DEI

Skydance didn’t just buy a company, they bought into a culture war. To appease regulators, they promised an ombudsman role for CBS. That person’ll field bias complaints and report directly to Skydance execs . Carr specifically celebrated Skydance axing all diversity, equity, and inclusion (DEI) programs. Paramount had already rolled ’em back this year, but Skydance vowed zero DEI policies at “New Paramount” . Critics called this political theater. The FCC’s lone Democrat, Anna Gomez, warned it “overstep[ed] authority” meddling in employment matters .

Backlash: “Cowardly Capitulation” or Corruption?

The fallout’s been fierce. FCC Commissioner Gomez blasted her colleagues in a scorching dissent: “After months of cowardly capitulation to this Administration, Paramount finally got what it wanted” . Senators Elizabeth Warren and Ed Markey slammed the timing as “the worst form of corruption” . Warren’s pushing for a federal probe, arguing “bribery is illegal no matter who is president” . Even Comedy Central’s South Park roasted the deal. Last Wednesday’s episode depicted Trump with a “teeny-tiny” penis, mocking Paramount’s concessions .

Leadership Shakeup and Colbert’s Cancelation

Paramount’s old guard is out. Shari Redstone (heir to the Redstone empire) exits as chair, while co-CEO Chris McCarthy’s leaving post-merger . David Ellison, son of Trump ally Larry Ellison, becomes CEO, with ex-NBCUniversal boss Jeff Shell as president . But the weirdest twist? CBS axed The Late Show with Stephen Colbert last week. Network brass called it a “financial decision” (the show bled $40–50 million yearly). But staff noted Colbert’d just slammed Paramount’s Trump deal as a “big, fat bribe” . Jon Stewart mused on The Daily Show: “Everyone’s wondering, was this purely financial?” .

Why This Reshapes Media’s Future

This ain’t just ’bout one merger. It signals how media giants must navigate Trump’s FCC. Carr’s launched probes into PBS and NPR, and Congress just yanked $1 billion from ’em . Now, he’s using license reviews to strong-arm content. Skydance’s ombudsman creates a direct pipeline for bias complaints to management, something Gomez called “never-before-seen controls” violating the First Amendment . For an industry already scared of regulatory revenge, Paramount’s ordeal sets a scary precedent.

The FCC’s Unprecedented Role

Traditionally, the FCC avoids judging news content. But Carr’s statement celebrated Skydance “root[ing] out bias” at CBS to “earn back trust” . That language mirrors Trump’s years of “fake news” rhetoric. The agency also took 250 days to review the deal, way past its 180-day target . Gomez suspects Carr slow-walked it to pressure Paramount into settling Trump’s suit. Whether true, the message to media is clear: cross the White House, risk your licenses.

What’s Next for Paramount and CBS?

Skydance plans to merge Paramount+ with its AI tech, hoping better algorithms lure subscribers . CBS News faces turmoil; top 60 Minutes producers left pre-settlement, and morale’s tanking . But Ellison’s betting $1.5 billion can fix things. He’ll need to soothe creators too, South Park’s creators just scored a deal for their streaming rights hours after mocking Paramount’s Trump caving . If the new bosses silence critics like Colbert, though, they might end up with more than a South Park punchline.

Frequently Asked Questions

Q: Did Paramount pay Trump to get the merger approved?
A: Officially, no. The $16 million library settlement and FCC approval are “unrelated.” But Trump claimed $36 million in total perks, and critics like Elizabeth Warren demand an investigation .

Q: What happens to CBS News under Skydance?
A: An ombudsman will review bias complaints. DEI programs are scrapped. Staff fear editorial interference, especially after 60 Minutes leaders quit pre-settlement .

Q: Why was Stephen Colbert’s show canceled?
A: CBS insists it lost $40–50 million yearly. But the timing, days after Colbert mocked Paramount’s Trump deal, raised eyebrows .

Q: Who owns Skydance Media?
A: David Ellison (son of Oracle’s Larry Ellison). His dad’s a Trump ally, and Skydance partnered with RedBird Capital on the deal .

Q: How will this affect Paramount+?
A: Skydance vows AI upgrades to personalize content. They also secured South Park streaming rights, key for competing .

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