The Federal Communications Commission (FCC) has initiated discussions with Paramount Global regarding the preliminary steps required to secure approval for its proposed merger with Skydance Media, sources familiar with the matter revealed told the Wall Street Journal. The talks mark a tentative step forward in a deal that has been under FCC review for months with little progress, complicated by regulatory scrutiny and a high-profile lawsuit from President Donald Trump.
A key condition under discussion is Paramount’s commitment to refrain from certain corporate diversity, equity, and inclusion (DEI) initiatives, according to insiders. FCC Chairman Brendan Carr has been vocal about urging telecom and media companies to scale back DEI policies as a prerequisite for merger approvals. This stance aligns with Carr’s broader regulatory philosophy, which has also brought a third-party complaint about alleged news distortion by CBS’s “60 Minutes” into the FCC’s review of the Paramount-Skydance deal. The complaint centers on the editing of a Kamala Harris interview last year, which critics claim was manipulated to favor the then-vice president.
The FCC’s authority over the merger stems from the transfer of broadcast television licenses held by CBS, a Paramount subsidiary. The regulatory process has been further complicated by a separate legal battle between Paramount and Trump. The president’s lawsuit against CBS News, filed in October 2024 and amended in February 2025, alleges that the network edited Harris’s interview to bolster her 2024 presidential campaign. Initially seeking $10 billion in damages, Trump doubled the claim to $20 billion in the amended filing. Mediation in the case is slated to begin next week.
Shari Redstone, Paramount’s nonexecutive chair and controlling shareholder, has pushed for a settlement with Trump, hoping it will pave the way for FCC approval of the merger. Redstone has also publicly criticized CBS News and “60 Minutes” for perceived biases, according to prior Wall Street Journal reports. The controversy has taken a toll internally, with “60 Minutes” Executive Producer Bill Owens announcing his resignation on Tuesday, citing a loss of editorial independence.
However, settling with Trump is not without risks. Some CBS News staff oppose any settlement that includes an apology, and Paramount executives and directors fear potential criminal liability if a settlement is perceived as an attempt to influence a public official, sources said. The merger itself involves Skydance Media, owned by David Ellison, son of Oracle co-founder Larry Ellison, a known Trump ally. Paramount has also enlisted Florida lobbyist Brian Ballard, who raised over $50 million for Trump’s 2024 campaign, paying him at least $90,000, per federal filings.
FCC Chairman Carr has emphasized that Trump’s lawsuit and the merger review are distinct processes. Nonetheless, the convergence of regulatory, legal, and political pressures underscores the complexity of the Paramount-Skydance deal, which remains a focal point in the evolving media landscape.
As discussions with the FCC progress, Paramount faces a delicate balancing act: navigating regulatory demands, addressing Trump’s legal challenge, and managing internal dissent, all while seeking to finalize a merger that could reshape its future.
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