FCC approves controversial $8 billion Paramount and Skydance merger

In the United States, the Federal Communications Commission (FCC) approved a significant merger between Paramount Global and Skydance Media on July 22, 2024. This merger, valued at $8 billion, was ratified approximately one year after the two companies initially announced their agreement. The FCC's approval came after the transfer of licenses for 28 CBS-owned local TV stations to a Skydance-led ownership group, which represented the last regulatory challenge to the merger. The decision to approve the merger was made by a 2-1 vote within the Commission, with only Commissioner Anna Gomez dissenting. Gomez raised concerns regarding a prior settlement between Paramount and former President Trump, alleging wrongdoing and a conflict of interest that could endanger the integrity of media operations. The contentious nature of the merger sparked criticism from various quarters, especially regarding its implications for diversity in media representation. Following the merger agreement, Skydance pledged to eliminate its Diversity, Equity, and Inclusion (DEI) programs and assured the FCC that it would not implement any similar policies going forward. The company’s decision was expressed through its top lawyer, Stephanie Kyoko McKinnon, in correspondence directed to FCC Chairman Brendan Carr. Amid growing public distrust in national news media, the FCC embraced Skydance's commitment to uphold unbiased journalism standards in CBS programming. This pledge included a commitment to embrace diverse viewpoints and ensure that the editorial decision-making at CBS reflects a broader spectrum of perspectives. However, the implications of this merger extend beyond mere financial transactions. It raises significant concerns about monopolistic control over media and the potential stifling of diverse dialogue and perspectives within a crucial segment of American media. In dissent, Commissioner Gomez noted that this approval could have adverse effects on the American public, positioning the merger as not just a corporate reshuffle but a transformation of public interest broadcasting. Following the settlement with Trump, questions arose regarding the independence of Paramount as it moved forward with Skydance and whether its business decisions serve larger corporate interests rather than the interests of the viewing public. Overall, the approval of the Paramount-Skydance merger is emblematic of ongoing shifts within the media landscape, reflecting deeper tensions between media conglomerate priorities and the integrity of independent journalism. As the media industry evolves, these public concerns will likely continue to shape policy and regulatory decisions into the future.