On July 25, 2025, U.S. regulators officially approved the $8 billion merger between Paramount Global and Skydance Media, clearing the final regulatory hurdle for one of the largest entertainment industry consolidations in recent years. The long-anticipated green light from the Federal Communications Commission (FCC) sent Paramount shares up nearly 2% in pre-market trading, signaling investor confidence in the merged company’s future.
The approval marks a significant milestone in a complex transaction that has drawn scrutiny from regulators, investors, and political observers. The merger is structured in two phases: Skydance investors first acquired National Amusements, Paramount’s controlling shareholder, for approximately $2.4 billion. This was followed by an all-stock merger between Skydance and Paramount valued at roughly $4.75 billion. The combined entity, valued around $28 billion, will be led by Skydance CEO David Ellison, with former NBCUniversal executive Jeff Shell as president.
An important development ahead of the FCC’s decision was Paramount’s resolution of a $16 million lawsuit tied to a controversial “60 Minutes” segment that aired in 2024 and featured former President Donald Trump. The settlement helped alleviate concerns that the legal issue might delay or derail regulatory approval. The FCC ultimately voted 2–1 in favor of the merger.
As part of the FCC’s conditions for approval, Paramount agreed to a series of editorial oversight changes. These include the appointment of an independent ombudsman to review bias-related complaints, the phasing out of certain internal DEI (diversity, equity, and inclusion) programs, and a formal commitment to ensuring ideological diversity in CBS broadcast content. These stipulations have drawn criticism from media freedom advocates and legal experts who view them as potential overreach into newsroom autonomy.
Despite those concerns, the merger is widely seen as a strategic move for both companies. Paramount gains fresh capital and new leadership at a time when it has been facing declining cable revenues and pressure to grow its Paramount+ streaming service. Skydance, which has built a strong reputation through partnerships on franchises like “Top Gun: Maverick” and “Mission: Impossible,” brings high-budget production capabilities and a younger executive vision to the legacy media brand.
The merger arrives amid a broader wave of media consolidation, as traditional entertainment companies adapt to shifting audience habits, rising content costs, and increased competition from tech giants. Industry analysts note that Skydance’s influence could steer Paramount toward a more nimble, digitally focused strategy that better competes in the modern content ecosystem.
The new company will be listed on the Nasdaq under the ticker “PSKY” and is expected to close the merger by early August. Over the next several months, executives plan to reduce costs by an estimated $2 billion. This includes scaling back operations at underperforming cable channels and restructuring the CBS News division, which has already seen key resignations and leadership changes.
In the short term, investors appear optimistic that the merger will rejuvenate Paramount’s position in the entertainment market. However, some caution that the success of the combined entity will depend on its ability to integrate operations smoothly while navigating a politically charged regulatory environment.
With regulatory clearance now in hand, the Paramount–Skydance merger stands as a landmark media deal in 2025—one that reflects both the challenges and opportunities facing the entertainment industry as it evolves.
