In a significant development for the media landscape, the Federal Communications Commission has granted its approval for the substantial $8 billion merger between Paramount Global and Skydance Media. This pivotal decision has sent Paramount Global's stock soaring in after-hours trading, reflecting strong investor confidence in the newly combined entity. The merger approval hinges on specific commitments from Skydance, particularly regarding the editorial direction and operational policies of CBS, a key subsidiary of Paramount Global. This move is poised to reshape the future trajectory of both companies and the broader entertainment industry.
Paramount Global-Skydance Merger Receives Green Light from FCC
On a momentous Thursday, July 24, 2025, Paramount Global experienced a notable surge in its share value during after-hours trading, following the Federal Communications Commission's decisive approval of its substantial $8 billion merger with Skydance Media. This long-anticipated regulatory green light paves the way for the two entertainment powerhouses to combine forces, marking a significant consolidation within the media industry.
The FCC's endorsement specifically included the transfer of licenses for 28 local television stations under the ownership of CBS, a cornerstone asset of Paramount. A crucial factor in securing this approval was Skydance's firm commitment to address concerns about impartiality and representation. To this end, Skydance has pledged to institute an ombudsman role, tasked with impartially reviewing any bias complaints directed at CBS. Furthermore, Skydance has committed to re-evaluating and ultimately phasing out certain diversity, equity, and inclusion (DEI) initiatives.
Brendan Carr, a prominent figure at the FCC, articulated the rationale behind this decision, stating, \"American citizens have grown increasingly distrustful of traditional national news outlets to deliver unbiased, precise, and equitable reporting. A shift is clearly necessary. Therefore, I wholeheartedly endorse Skydance's dedication to enacting substantial changes within the historically celebrated CBS broadcast network.\"
This landmark approval arrives more than a year after Skydance initially unveiled its intentions to acquire Paramount Global and its diverse portfolio of subsidiaries. The integration of these entities is expected to create a formidable new player in the global entertainment and media landscape.
Following the news, Paramount Global (NASDAQ: PARA) shares exhibited a robust performance, climbing by 2.41% in after-hours trading, reaching a price of $13.58 at the close of Thursday's trading session.
This merger serves as a potent reminder of the dynamic nature of media ownership and content creation. The FCC's conditions, particularly those addressing editorial bias and the future of DEI programs, highlight a broader societal dialogue regarding media accountability and representation. As the newly formed entity embarks on its journey, all eyes will be on how these commitments translate into tangible changes and whether they will indeed restore public trust in a rapidly evolving information ecosystem. This development underscores the continuous interplay between regulatory bodies, corporate strategy, and public perception in shaping the future of entertainment and news dissemination.