Policy and legal critics watch as deal careens into the crossroads of politics, litigation, regulation, technology, and media consolidation.
The media industry is on the precipice of another landmark deal as Paramount Global and Skydance Media inch closer toward their highly anticipated merger. This deal, which would unite one of Hollywood’s most storied studios with a dynamic production company renowned for blockbuster franchises, is drawing close attention from regulators, legislators, and political pundits.
Mergers are nothing new in this industry, but this one is unique for sparking allegations of political influence. At the center of the conversation is Shari Redstone, non-executive chair, controlling shareholder of Paramount, and daughter of the late media mogul Sumner Redstone, founder of Viacom and Chairman of CBS. U.S. Senators Elizabeth Warren, Bernie Sanders, and Ron Wyden recently sent a letter to Redstone, expressing concern over Paramount’s intentions in trying to settle a lawsuit filed by then-candidate Trump against CBS. Trump charged CBS with bias in the way 60 Minutes producers edited an interview with his political rival, Vice President Kamala Harris. The senators warned that if such a settlement is made as part of a strategy to curry favor with the Trump administration and smooth the path for merger approval, it could constitute a violation of federal bribery laws—specifically 18 U.S.C. § 201—if any quid pro quo arrangement is present.
Settlement Details
As reported by Kelcee Griffis and Hannah Miller for Bloomberg, the settlement—requiring Paramount to pay $16 million for Trump’s legal expenses and a donation to his future presidential library—comes as Federal Communications Commission Chairman Brendan Carr considers whether to approve the merger, possibly with additional conditions. Appointed by Trump and known for his public criticisms of media bias, Carr has indicated the deal will be scrutinized for both news impartiality and Paramount’s diversity, equity, and inclusion (DEI) policies, reflecting the administration’s efforts to eliminate DEI initiatives from major institutions.
Some critics have characterized the $16 million payment as the cost of dismissing an unfounded nuisance case.
According to Griffis and Miller’s Bloomberg reporting, conservative groups have urged the FCC to impose further concessions, such as relocating broadcast staff outside traditional media centers and appointing an independent ombudsman to monitor coverage.
Inside CBS News, Griffis and Miller report, journalists fear the merger could threaten editorial independence, while industry observers warn that unprecedented FCC oversight—such as a news bias monitor—could challenge federal protections against government censorship. The fate of the $8 billion merger may ultimately hinge on how the FCC balances these concerns, with the possibility of the deal being approved at the bureau level or elevated to a full commission vote.
FCC Chair Carr claims the agency’s review of the Paramount Global–Skydance merger is unrelated to President Trump’s lawsuit against CBS. As speaker at the recent Milken Global Conference, Carr told CNBC’s David Faber, “We are staying in our lane,” and explained that while the FCC is handling the merger and a 60 Minutes complaint, Trump’s lawsuit is a separate state court matter. However, Carr previously told Dana Perino of Fox News that he was “pretty confident that that news-distortion complaint over the 60 Minutes transcript is something that is likely to arise in the context of the FCC review of that transaction.”
Even the Milken Global Conference has a historical connection to the politics of today. Michael Milken, founder of the Milken Institute which hosts the conference, was indicted for racketeering and securities fraud in 1989 following an insider trading investigation. He pleaded guilty to securities and reporting violations, receiving a 10-year sentence, a $600 million fine, and a permanent ban from the securities industry. His sentence was later reduced to two years for cooperation and good behavior. President Trump pardoned Milken in 2020.
Complicating matters for Paramount are reports of internal upheaval at CBS, including the resignation of key executives. The senators’ letter suggests that these departures may be linked to editorial interference aimed at appeasing the Trump administration, intensifying questions around corporate governance and journalistic independence at a critical juncture.
As of this writing, Paramount has not issued a public response to the senators’ letter, but it has maintained that the lawsuit and the settlement are “completely separate from, and unrelated to, the Skydance transaction and the FCC approval process.” According to The Hollywood Reporter, Democratic FCC Commissioner Anna Gomez has called for the transparency of a full commission vote, not a closed-door approval. Regardless, the allegations and political scrutiny add layers of complexity to an already intricate merger process.
Deal Details
Under the preliminary terms, Skydance—led by CEO David Ellison—would acquire a controlling stake in Paramount, with a significant cash infusion aimed at stabilizing the company’s finances and funding new content initiatives. Julia Stoll, Germany-based researcher for Statista wrote that while Paramount’s revenue has remained stable in the past three years, “it cannot be overlooked that the media giant made losses in 2023 and 2024 after years of generating profits.”
The structure of the deal involves Skydance and its private equity partners purchasing National Amusements, the Redstone family’s holding company, which controls a majority of Paramount’s voting shares. By securing this linchpin, Skydance would gain decisive influence over the direction of Paramount’s storied film and television assets.
The transaction is expected to be valued at between $4 billion and $8 billion, depending on the final terms and structure.
The merger would see Paramount’s legacy brands—such as CBS, MTV, Nickelodeon, and Paramount Pictures—joined with Skydance’s growing portfolio of film and streaming projects. This union is envisioned as a strategic response to intensifying competition from tech giants and streaming-first companies, enabling the combined entity to leverage greater scale, diversified revenue streams, and a robust content pipeline.
As negotiations have progressed, the terms have included provisions to protect minority shareholders and address regulatory concerns, with discussions centering on board composition, management continuity, and long-term strategic vision. The deal’s complexity is heightened by the intricate ownership structure of Paramount and the need to satisfy both corporate governance standards and competitive market dynamics.
Market Details
A Paramount–Skydance merger would be one of the most significant media consolidations in recent history, with the potential to reshape the competitive landscape for years to come. The industry today is defined by intense competition, rapid technological evolution, and shifting consumer preferences that continue to reshape traditional business models.
Paramount and other major players such as Disney, Warner Bros. Discovery, and NBC Universal are contending with the rise of tech-driven disruptors—most notably Netflix, Amazon, Apple, and Google’s YouTube—whose streaming platforms have irrevocably changed how audiences access and engage with content. These media newcomers have leveraged deep financial resources, advanced data analytics, and global reach to challenge the supremacy of established studios and networks.
Amid this disruption, conglomerates with vast libraries and diversified assets strive to stay relevant by expanding direct-to-consumer streaming services, forging strategic alliances, and pursuing mergers or acquisitions to consolidate content, talent, and distribution channels. The lines between film, television, and digital content have blurred, giving rise to aggressive bidding wars over intellectual property, exclusive talent deals, and live broadcasting rights. Additionally, the proliferation of new platforms, from social media video channels to niche streaming services, has fractured audiences and intensified the battle for attention and subscription dollars.
Regulatory scrutiny is another critical factor, as governments and antitrust authorities closely monitor consolidation efforts to preserve competition, protect consumer choice, and ensure editorial diversity. This oversight adds complexity to major transactions, such as the Paramount–Skydance merger, as stakeholders must navigate not only financial and operational challenges but also the evolving landscape of compliance and public perception.
A new disruptor has entered the scene, stirring both hope and dread – artificial intelligence. AI-powered tools can streamline scriptwriting, automate visual effects, and enable rapid editing. Algorithms can analyze audience preferences to recommend plot structures, generate hyper-realistic CGI, or even restore archival footage. Filmmakers and showrunners are expected to bring concepts to life faster, while studios will use data-driven insights to tailor content for global audiences. The impact on creative humans is one to watch.
Ultimately, the competitive environment rewards agility, innovation, and effectively leveraging both legacy brands and newly acquired assets. Companies best positioned to thrive are those able to unite creative vision with strategic scale, adapt to technological change, and maintain trust with both regulators and audiences in an era of unprecedented transformation.
Mega Media Mergers
If consummated, Paramount-Skydance would join the list of the largest media mergers and acquisitions from the past decade.
2018
AT&T acquires Time Warner
Value: $85.4 billion
Impact: Brought together Warner Bros., HBO, and Turner Broadcasting under AT&T, forming WarnerMedia.
Comcast acquires Sky
Value: $40 billion
Impact: Expanded Comcast’s footprint into Europe, gaining access to Sky’s satellite TV and broadband services.
2019
Disney acquires 21st Century Fox
Value: $71.3 billion
Impact: Gave Disney control of Fox’s film and TV studios, FX Networks, National Geographic, and a majority stake in Hulu.
2022
Amazon acquires MGM
Value: $8.45 billion
Impact: Strengthened Amazon Prime Video’s content library with MGM’s 4,000 films and 17,000 TV shows, including the James Bond franchise.
Discovery merges with WarnerMedia
Value: $43 billion
Impact: Created Warner Bros. Discovery, combining HBO, CNN, Discovery Channel, and more under one roof.
2023
Microsoft acquires Activision Blizzard
Value: $68.7 billion
Impact: While primarily a gaming deal, it had major media implications, giving Microsoft control of massive IPs like Call of Duty and World of Warcraft.
Edited by Tom Hagy for Mogin Law LLP.
