Paramount Global and Skydance Media have announced that their merger will close on August 7, 2024, following approval from the Federal Communications Commission (FCC). The $8 billion deal, first announced on July 7, 2024, will create a new entity called Paramount Skydance Corp., with shares trading on Nasdaq under the ticker symbol PSKY.
The merger brings together Paramount's assets, including CBS, Paramount+, Paramount Pictures, Comedy Central, and BET, with Skydance's film, animation, and games production businesses. To secure FCC approval, Skydance agreed to maintain the elimination of diversity, equity, and inclusion (DEI) programs and to appoint an ombudsman at CBS to handle bias complaints. FCC Chairman Brendan Carr stated this would address bias in news media, while Democratic Commissioner Anna Gomez criticized the terms as violating the First Amendment.
The FCC's clearance came two weeks after Paramount settled a lawsuit with President Donald Trump for $16 million, related to an edited "60 Minutes" interview. The new company is expected to achieve $2 billion in annual cost savings, likely leading to significant layoffs, following previous workforce reductions at Paramount.
David Ellison, current CEO of Skydance, will serve as chairman and CEO of the merged company, with Jeff Shell as president. Shari Redstone will exit the board after receiving $1.75 billion in cash for National Amusements. Leadership changes are underway, with Chris McCarthy and Brian Robbins expected to leave, while George Cheeks is anticipated to remain as CBS CEO.
