By: Andrew Carlson

In a long-anticipated decision, the Federal Communications Commission (FCC) on Thursday officially approved the $8.4 billion merger between Paramount Global and Skydance Media, removing the final regulatory barrier to a historic union that reshapes the American media landscape. The approval by the FCC — reported in detail by The New York Post on Thursday, clears the path for independent studio Skydance to assume control of a vast entertainment empire, including CBS, Paramount Pictures, the Paramount+ streaming service, and a portfolio of cable networks such as MTV, Nickelodeon, and Comedy Central.

The deal, now expected to close by August 7, marks the culmination of months of contentious negotiations, lawsuits, and internal upheaval at Paramount. “We’re going to celebrate now,” a source close to Skydance told The New York Post. “We’re all beat up. Just exhausted, but it was well worth it.”

The FCC’s green light comes on the heels of Paramount’s $16 million settlement in a lawsuit brought by President Trump, who had accused the network of editorial misconduct in a “60 Minutes” interview with then–Vice President Kamala Harris that aired in October. While CBS denied wrongdoing, The New York Post reported that executives chose to settle in order to prevent any further delay in regulatory approval.

The FCC, chaired by Trump-appointed commissioner Brendan Carr, approved the merger by a 2–1 vote, citing assurances from Skydance CEO David Ellison and investment partner RedBird Capital that the new entity would commit to unbiased journalism and enforce new safeguards to ensure editorial neutrality at CBS News. Among the stipulations was a pledge to appoint an ombudsman to independently evaluate complaints related to bias or journalistic conduct.

“Americans no longer trust the legacy national news media to report fully, accurately, and fairly,” Carr wrote in a statement published Thursday, as reported by The New York Post. “It is time for a change. That is why I welcome Skydance’s commitment to make significant changes at the once storied CBS broadcast network.”

The FCC’s approval also includes the transfer of licenses for 28 CBS-owned and operated stations to the new ownership structure, a procedural but crucial component of the merger’s completion.

Founded by David Ellison — son of Oracle billionaire Larry Ellison — Skydance has produced high-grossing Hollywood franchises, including Top Gun: Maverick and Mission: Impossible – The Final Reckoning. Under the merger agreement, Skydance and RedBird Capital will acquire National Amusements, the parent company of Paramount, from longtime media executive Shari Redstone, in a transaction valued at $1.75 billion in cash. Redstone is expected to step down from the board of the newly formed Paramount Skydance Corp.

According to the information provided in The New York Post report, once the transaction is finalized, David Ellison will take over as chairman and CEO of the merged company. Jeff Shell, former chief executive of NBCUniversal, will serve as president, bringing decades of media experience to the new leadership team.

The merger signals a major power shift in the entertainment industry, with Skydance poised to lead the evolution of a company once considered among the most iconic media institutions in the United States.

In a move aligned with the Trump administration’s stance on corporate governance, Paramount — ahead of the FCC ruling — also dismantled its diversity, equity, and inclusion (DEI) initiatives, a decision that The New York Post report linked directly to Skydance’s attempt to secure regulatory approval. Critics of DEI policies within the current administration have called them discriminatory, and their removal was reportedly viewed favorably by regulators and investors aligned with that view.

These internal shifts further helped Skydance position itself as a politically palatable successor to Paramount’s assets, especially in light of mounting scrutiny of CBS’s editorial direction.

One of the most consequential developments shaping the FCC’s final decision was Trump’s $20 billion lawsuit against Paramount, which accused CBS of airing a “deceptively edited” interview with Kamala Harris to sway the outcome of the 2024 election. While CBS denied the allegations, they agreed to settle for $16 million to avoid a protracted legal battle that could have jeopardized the merger.

In comments made earlier this week and referenced by The New York Post, Trump claimed that the actual value of the settlement was $36 million, noting that the new owners also agreed to commit $20 million in public service advertising supporting MAGA-aligned causes — an assertion not confirmed by either company but widely reported in conservative media.

The FCC’s lone dissenting vote came from Democratic Commissioner Anna Gomez, who criticized the merger’s trajectory and the influence of political pressure in shaping corporate media. “After months of cowardly capitulation to this administration, Paramount finally got what it wanted,” Gomez said, as quoted by The New York Post.

The approval comes just one week after CBS canceled “The Late Show with Stephen Colbert”, citing financial losses. The top-rated late-night program had been losing approximately $40 million annually, further underscoring Paramount’s financial vulnerability and the strategic imperative of the Skydance deal.

Shari Redstone, who spearheaded the 2019 reunification of Viacom and CBS, initially sought to revitalize the legacy brand to compete with digital-era giants like Netflix and Disney+. However, in the years since, Paramount has suffered billions in market cap losses and struggled to adapt to the streaming-first entertainment economy.

The New York Post report observed that the merger is both a symbolic and operational end to Redstone’s tenure. Her exit from the board will formally conclude the Redstone family’s decades-long control over the company her father, Sumner Redstone, built into a media powerhouse.

Once finalized, the merged Paramount Skydance Corp. will operate as a publicly traded company, controlled by the Ellison family and infused with fresh leadership and a mandate for reform. According to sources cited by The New York Post, the new entity aims to prioritize franchise content, tech-integrated storytelling, and operational efficiency — all while navigating the politically charged environment of modern media.

Whether the merger ultimately revitalizes the CBS brand and restores Paramount’s competitiveness remains to be seen. But as The New York Post report emphasized, the FCC’s decision represents a profound inflection point for both the company and the broader entertainment industry — one that blends legacy storytelling with the ambitions of a younger, more digitally-native generation of media executives.

In the coming weeks, all eyes will turn to Ellison and Shell as they move to close the transaction and lay the groundwork for a transformed — and highly scrutinized — American media empire.