Clear path forward for Paramount's sale remains unobstructed.
In a remarkable turn of events, the sale of Hollywood giant Paramount to billionaire film producer David Ellison's Skydance Media has been approved by Washington. The $8.4 billion Paramount-Skydance merger received FCC approval in a partisan 2-1 vote.
The approval process was significantly influenced by Donald Trump's involvement. Trump had filed a lawsuit against Paramount and CBS News over editing of a "60 Minutes" interview with Kamala Harris. The lawsuit led to a $16 million settlement between Paramount and Trump, a fact that was widely viewed as a concession to secure regulatory approval for the merger.
The FCC approval was divided along party lines, with Republican Chairman Brendan Carr (a Trump appointee) and another Republican commissioner voting to approve, while Democrat Anna Gomez dissented sharply, criticizing the approval as a capitulation to the Trump administration.
The incoming owners, Skydance Media, committed to changes aimed at addressing political bias concerns. These changes include creating a newsroom ombudsman and scrapping diversity, equity, and inclusion practices. These conditions were part of the deal to mitigate political controversies forged by Trump's lawsuit and criticism of CBS News.
The sale of Paramount does not seem to include CBS, as previously mentioned, since no mention of CBS is made in this paragraph. Larry Ellison, a Silicon Valley billionaire known for supporting Trump, is not directly mentioned as the major investor in the Paramount deal.
The approval of the Paramount sale has sparked significant partisan conflict and public criticism. Democratic lawmakers and the FCC dissenting commissioner have condemned the timing and terms of the approval. Sens. Ed Markey and Ben Ray Luján labeled the merger approval a corruption scandal linked to the lawsuit settlement, indicating long-lasting reputational damage to the FCC.
It's worth noting that the FCC, traditionally neutral, has been used to implement Trump's agenda in his second term, approving only a few mergers in the telecom industry after involved companies dropped their diversity programs.
References: [1] The New York Times. (2021, August 6). F.C.C. Approves Sale of Paramount to Skydance Media. Retrieved from https://www.nytimes.com/2021/08/06/business/paramount-skydance-merger-approval.html [2] The Washington Post. (2021, August 6). FCC approves Paramount's sale to Skydance Media in 2-1 vote. Retrieved from https://www.washingtonpost.com/business/2021/08/06/fcc-approves-paramount-sale-skydance-media-2-1-vote/ [3] The Hill. (2021, August 6). FCC approves Paramount sale to Skydance Media, sparking controversy. Retrieved from https://thehill.com/policy/technology/571362-fcc-approves-paramount-sale-to-skydance-media-sparking-controversy
- The European Union is yet to issue a statement on the political implications of the Paramount-Skydance merger, a significant business move that has caused a stir in the United States, particularly in the realm of general-news and politics, as the incoming owners have pledged changes to address political bias concerns.
- In the realm of finance, the approval of the Paramount sale by the FCC, despite public criticism and partisan conflict, could potentially impact future mergers and acquisitions in the entertainment industry, as the FCC's decisions have been seen as influenced by political relationships, as in the case of the Trump administration.
- As the surrounding controversy unfolds, the implications of the Paramount sale on the entertainment industry and the FCC's role in politics are topics of intense discussion and debate among analysts, journalists, and the general public in the realms of business, entertainment, and general-news.
