The proposed $8 billion merger between Paramount Global and Skydance Media is encountering significant obstacles as it seeks U.S. regulatory approval, with complications arising from both political and labor fronts, sources close to the matter told The Post.
The situation has been exacerbated by Donald Trump’s recent election victory, particularly due to his $10 billion lawsuit against CBS, a Paramount subsidiary, for alleged “voter interference” related to a “60 Minutes” interview with Kamala Harris. Trump’s claim is that the interview was manipulated to favor Harris, which could now influence the Federal Communications Commission (FCC) review of the merger.
A source close to Paramount, speaking under condition of anonymity, suggested that the company might be compelled to conduct an internal investigation into the interview to appease Trump and FCC Commissioner Brendan Carr, who has indicated that the news distortion complaint could impact the merger review. “I’m pretty confident that that news distortion complaint over the ’60 Minutes’ transcript is something that is likely to arise in the context of the FCC review of that transaction,” Carr stated in a recent interview.
Further complicating matters, the International Brotherhood of Teamsters has voiced concerns about potential job cuts following the merger. Skydance’s plan to save $2 billion, with half expected in the first year, has raised fears of significant layoffs, particularly affecting local news coverage at Paramount’s CBS stations. Teamsters President Sean O’Brien, with his recent political alliances with Trump, might wield considerable influence over the regulatory process.
Skydance, aware of these challenges, has engaged Makan Delrahim, former antitrust chief under Trump’s first term, to navigate the regulatory landscape. Despite the Department of Justice clearing the merger, the FCC has extended the public comment period, suggesting ongoing scrutiny.
The merger’s approval could be delayed until late next year, potentially clashing with the merger’s termination deadline. There’s speculation that Paramount might need to divest its owned TV stations to satisfy regulatory bodies, an option which could also be lucrative given their estimated value.
Mario Gabelli, whose firm holds significant Paramount shares, noted, “Yes, I accept there is a possibility of the FCC finding an excuse not to approve the deal.” However, he also acknowledged that Skydance’s CEO, David Ellison, might not easily abandon the merger pursuit.
Should the deal fall through, Paramount has other prospects. Project Rise Partners, which previously showed interest in acquiring Paramount, is reportedly regrouping to potentially make another all-cash offer, though this would incur a $400 million fee to Skydance if Paramount opts for another buyer.
Skydance, Paramount, and the Teamsters have declined or not responded to requests for comment on these developments.
As the merger hangs in balance, the broader implications for media ownership, labor, and political influence in regulatory decisions are under sharp focus. The outcome could set precedents for how media mergers are treated in the politically charged atmosphere of the Trump administration’s second term.