Skydance Media CEO David Ellison is expressing quiet confidence in his $8 billion bid to acquire Paramount, the parent company of CBS, despite significant regulatory and legal challenges, sources close to the deal tell On The Money. The son of Oracle founder Larry Ellison has been telling industry insiders in Los Angeles that he expects the deal to close before the end of summer, well ahead of the October deadline when both parties could walk away if the transaction remains incomplete. This will result in Ellison taking over control of CBS and Paramount.
Ellison’s optimism stands in contrast to recent reports highlighting headwinds facing the merger. The Trump administration’s regulatory bodies, particularly the Federal Communications Commission (FCC), are scrutinizing Paramount’s CBS News subsidiary for alleged violations of guidelines mandating politically unbiased content. Conservative critics have long accused CBS News of a left-leaning bias, a claim the network has consistently denied. The FCC’s approval is critical for the deal to proceed, and delays in the review process have raised concerns among Paramount’s leadership.
Adding to the complexity, President Donald Trump has filed a $20 billion lawsuit against CBS in Texas federal court, alleging that the network’s 60 Minutes program violated a state business law by deceptively editing an interview with Vice President Kamala Harris during the 2024 presidential election. Trump’s legal team claims the interview was manipulated to damage his reputation. Paramount believes regulatory approval hinges on settling this lawsuit, but Shari Redstone’s management team and board are wary of potential bribery charges if a settlement is perceived as a quid-pro-quo to secure the deal. Redstone, Paramount’s controlling shareholder, stands to receive a $2 billion payout upon the merger’s completion.
Despite these challenges, recent developments suggest a potential path forward. Sources confirm that both sides in the lawsuit have engaged in settlement talks, discussing a $35 million payment to resolve the dispute—a significant reduction from Trump’s original $50 million demand and far below the $20 billion headline figure. Additionally, a mediator has reportedly warmed to a proposal involving CBS airing public service announcements (PSAs) for causes aligned with Trump’s priorities, such as combating antisemitism, alongside a reduced cash payment. However, it remains uncertain whether Trump will accept these terms.
Ellison’s confidence may stem from his father’s financial backing and political connections. Larry Ellison, with a net worth of approximately $250 billion, is funding the acquisition and maintains an open line to the White House, given his relationship with Trump. Industry insiders speculate that the deal could be approved before the lawsuit is settled, allowing Ellison to address the settlement post-acquisition. Alternatively, Paramount may opt to settle with Trump for an amount closer to his demands, as legal experts argue that bribery charges would be difficult to prove in court. With Trump securing settlements from other companies in similar disputes, Paramount could view a payment of $50 million or less as a cost-effective alternative to prolonged litigation.
Trump has publicly praised David Ellison, suggesting he would transform CBS’s culture upon taking control, stating, “They are all getting fired.” This aligns with Ellison’s vision for Paramount, bolstered by Skydance’s track record of producing blockbusters like Top Gun: Maverick and the Mission: Impossible series. A Paramount spokesperson declined to comment, as did a representative for Ellison.
As the summer deadline approaches, the media industry is watching closely to see if Ellison’s optimism will overcome the regulatory and legal obstacles, potentially ushering in a new era for Paramount and CBS under Skydance’s leadership.
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