US regulators approve controversial $8 bn Skydance‑Paramount merger
Skydance Merger Approved Even as CBS Cancels Late‑Night Show
US regulators on Thursday gave the green light to an $8 billion deal that will bring Skydance and Paramount Global into a single powerhouse. The clearance came in the middle of a flurry of turmoil for Paramount, including an on‑air lawsuit with former President Donald Trump and a week after CBS cut a marquee late‑night program.
Key Points of the Transaction
- Merger approval was issued after Paramount settled a lawsuit that Trump filed over CBS News’ flagship series 60 Minutes.
- Late‑night cancellation followed the week after CBS announced it would end The Late Show with Stephen Colbert in 2026.
- Financial motives were cited in a CBS statement – the network said the decision was “a purely financial one against a challenging backdrop in late night.”
Trump Lawsuit Summary
- Trump sued Paramount for $20 billion last year, claiming CBS News’ 60 Minutes edited an interview with his 2024 election opponent, Kamala Harris, in Harris’s favor.
- The network had shown a shortened clip or “tease” of Harris speaking earlier on network programming, and the full quote aired on the Sunday evening broadcast.
- Trump objected to the use of the shorter clip, sparking the lawsuit.
FCC Chair’s Comments and Skydance Conditions
FCC chair James Carr echoed the Trump administration’s criticisms of CBS News, saying Americans “no longer trust the legacy national news media to report fully, accurately and fairly.” Carr welcomed Skydance’s commitment to make significant changes at the once‑storied CBS broadcast network.
The FCC’s approval came with a condition: Skydance will establish an “ombudsman” who will evaluate complaints of bias. Carr noted that Skydance has no DEI (diversity, equity and inclusion) programs in place today, but will not establish any such initiatives at the new company.
Political Senators React
- Democratic Senators Edward Markey and Ben Ray Lujan condemned the FCC’s approval as “reeks of the worst form of corruption,” pointing out the timing of the settlement and merger approval.
- Markey sent a letter to Paramount Global Chair Shari Redstone demanding details about the decision to cancel The Late Show with Stephen Colbert, specifically whether anyone in the Trump administration asked for the show to be canceled.
- Elizabeth Warren tweeted that CBS canceled Colbert’s show just three days after Colbert called out Paramount’s $16 million settlement with Trump – a deal that “looks like bribery.”
Colbert’s Legacy and Trump’s Reaction
Stephen Colbert, who succeeded David Letterman in 2015, used humor to provide incisive political commentary. Trump celebrated the cancellation on his Truth Social platform, writing: “I absolutely love that Colbert got fired. His talent was even less than his ratings.”
The end of The Late Show marks the conclusion of a franchise that has been broadcast continuously on CBS since 1993, reflecting decades of satirical comedy blending entertainment with news and political commentary.
