Paramount closes $8 billion merger with Skydance after settling '60 Minutes' lawsuit

Paramount Global and Skydance Media completed their $8.4 billion merger yesterday (7 August), capping a drawn-out deal process marked by political scrutiny and shareholder concerns.

Renamed "Paramount Skydance Corp", the company's Class B shares began trading on the Nasdaq under the ticker symbol PSKY on Thursday, under the deal announced more than a year ago. They closed up $0.10, or 1%, to $11.74.

The merger combines Paramount's sprawling global distribution network and prized film and TV library with Skydance's production and technological capabilities.

"Today marks Day One of a new Paramount... the coming months will be defined by a series of focused efforts to re-engineer how our company operates, produces its creative content, and goes to market," said David Ellison, chairman and CEO of the combined company.

The company will be structured into three business segments - studios, direct-to-consumer, and TV media - with Ellison emphasising the need to expand Paramount's technological capabilities, grow its streaming business and prioritise cash flow.

Paramount, like other legacy media players, is struggling with a sagging traditional linear TV business as consumers shift to streaming platforms. It took nearly $6 billion in write-downs on cable assets.

The Federal Communications Commission cleared the merger last month, weeks after Paramount settled a lawsuit filed by US President Donald Trump over CBS' editing of a "60 Minutes" interview with his Democratic presidential opponent Kamala Harris.

The merger was approved after Skydance agreed to ensure CBS news and entertainment programming would be free of bias, hire an ombudsman for at least two years to review complaints, and end diversity programmes.

Democratic FCC Commissioner Anna Gomez, who voted against the merger, said the closing "marks the final chapter of a dark moment in our nation's history. After months of cowardly capitulation, including an unprecedented payout to settle a meritless lawsuit in exchange for regulatory approval, Paramount and Skydance have completed their merger."

Gomez criticised the company's agreement to "never-before-seen forms of government control over newsroom decisions and editorial judgment - actions that violate both the First Amendment and the law."

FCC Chair Brendan Carr, a Republican, defended the provisions, saying it was necessary to include a commitment to more "fact-based reporting, unbiased journalism... It is clear to me that something fundamental needs to change when it comes to the legacy mainstream media."