The $8 billion Skydance-Paramount merger deal, brokered last July, has officially passed its original April 7 deadline, but it’s far from dead. Thanks to built-in protections, the agreement automatically triggered a 90-day extension, buying both parties time until July 7, 2025. If the Federal Communications Commission still hasn’t cleared the merger by then, a second 90-day extension kicks in, potentially pushing resolution into the fall.
On paper, most hurdles are cleared. The SEC signed off back in February. So did the European Commission, citing no anti-competitive issues. But in the U.S., the FCC’s approval remains the lone outstanding condition, and there’s no statutory deadline compelling them to act.
Enter the politics. Trump’s $20 billion lawsuit against CBS News, a Paramount division, over a 60 Minutes interview with Kamala Harris has created serious complications. The FCC’s Trump-appointed chairman Brendan Carr has already signaled that the lawsuit will weigh heavily in the agency’s review.
But the lawsuit isn’t the only factor. Carr has publicly committed to blocking media M&A activity involving companies with DEI (diversity, equity, and inclusion) programs. He’s launched investigations into DEI practices at Disney/ABC and Comcast/NBCUniversal and has accused media companies of promoting “invidious forms of DEI.” Paramount, for its part, responded by scaling back some of its DEI initiatives earlier this year, seemingly to appease the regulatory climate.
This deal would reshape the media landscape. Skydance’s blockbuster production capabilities (Mission: Impossible, Top Gun: Maverick) would combine with Paramount’s legacy assets (CBS, Paramount Pictures). The combined entity is valued at $28 billion.
Skydance gets an implied $4.75 billion valuation. NAI shareholders, controlled by Shari Redstone, are in line for $1.75 billion and relief from $650 million in debt. Paramount Class B shareholders will receive $15 per share. The deal is being funded by $6 billion from Larry Ellison’s family and $2 billion from RedBird Capital. David Ellison, not Larry, will hold 100 percent of the voting power from the Ellison side.
Technically, the merger remains alive and well, just stuck in regulatory limbo. All conditions except for regulatory sign-off have been satisfied or waived. So while the delay is frustrating, the deal hasn’t unraveled. As the July 7 checkpoint looms, the real question is whether politics will override business logic or if this is just a longer-than-expected wait for inevitable consolidation.
