The Federal Communications Commission (FCC) has officially greenlit the $8 billion merger between Paramount Global and Skydance Media. In addition to US TV brands like CBS, Nickelodeon, Comedy Central, and MTV, Paramount in Australia own Network 10 and streaming service Paramount+. This deal marks the end of a review process that stretched over 250 days and attracted scrutiny amid claims of political influence.
The approval came with a 2-1 vote, with Commissioner Anna M. Gomez, appointed by President Joe Biden, dissenting against the deal.
Background and review process
Paramount and Skydance announced their intention to merge in mid-2024, aiming to combine Paramount’s broad entertainment portfolio with Skydance’s content production capabilities. The deal underwent an extensive FCC evaluation to assess its potential impact on competition, consumer choice, and media diversity.
During the review period, concerns were raised regarding the concentration of media ownership and possible effects on news coverage and programming. Additionally, some parties alleged political interference influenced the regulatory process, adding complexity to the FCC’s decision-making.
Controversy
The proposed merger of Paramount and Skydance has been controversial, with US media pundits and journalists stating that the FCC approval was being held up pending a settlement offer between the Paramount-owned US TV network CBS and the US President Donald Trump over a lawsuit related to coverage broadcast on the US 60 Minutes.
Last week’s cancellation of CBS’ the long-running CBS The Late Show, hosted by vocal Trump critic Stephen Colbert, has been seen by many as a capitulation to the US President. US senators Elizabeth Warren, Bernie Sanders, and Ron Wyden have announced an investigation into whether Skydance Media CEO David Ellison may have cut a secret side deal to get the merger through, which included the cancellation of the show.
In a statement regarding the cancellation of the show, the network has said that the decision was purely financial, a claim backed by multiple industry trade reporters. Joe Flint at the Wall Street Journal reported that the show was losing $40 million a year.
FCC’s statement and dissent
FCC chairman Brendan Carr, who voted in favour of the merger, emphasised the need for change within traditional media outlets. He stated, “Americans no longer trust the legacy national news media to report fully, accurately, and fairly. It is time for a change. That is why I welcome Skydance’s commitment to make significant changes at the once storied CBS broadcast network.”
Commissioner Anna M. Gomez opposed the merger, but did not release a public statement explaining her vote.
The local impact on Network 10
There is no indication from the incoming team at Skydance on what the future may hold for the Paramount Global-owned international free-to-air networks. In Australia Paramount own Network 10, which in addition to 10, 10 Comedy, and 10 Drama, it also broadcasts a Nickelodeon-branded channel. It also operates subscription streaming service Paramount+ and the advertising-supported 10 (formerly 10 Play), which runs FAST service Pluto TV within the 10 app.
Paramount Global also owns international free-to-air networks Telefe in Argentina, Chilevisión in Chile, and Channel 5 in the United Kingdom.
It is understood that Paramount has recently been reviewing its international pay television assets, with leaders in Africa told early this week that local services there may be closed with staff impacted.
For the moment, one expects that it will be business as usual at Network 10.