Paramount Skydance merger approved by FCC for $8 billion deal close

The Federal Communications Commission has given the green light for David Ellison’s Skydance to acquire Paramount Global.

FCC chairman Brendan Carr announced on Thursday that the transfer of Paramount’s broadcast licenses to Skydance has been approved, marking the final step in the review process for the $8 billion deal.

With the FCC’s approval, Skydance is now poised to finalize its acquisition of Paramount, reshaping the media landscape as Ellison steps into a leading role at the helm of CBS, the Paramount film studio, Paramount+, and beloved cable channels like MTV, Comedy Central, and Nickelodeon.

The FCC’s decision paves the way for significant changes in the media landscape, with Carr emphasizing the need for a shift in how news is reported. Skydance’s commitment to revamping CBS is seen as a positive step towards addressing public concerns about media trust.

One of the main motivations behind the approval is the potential for public interest benefits resulting from Skydance’s intervention in Paramount’s financial situation. Paramount has been grappling with rising costs and shrinking revenue sources, accumulating $14.6 billion in debt by the end of 2023. In response, Skydance has pledged to inject $1.5 billion in new capital into Paramount, ensuring smoother operations, and enabling continued investment in news coverage, live sports, movies, and TV content.