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4mo ago

Paramount and Skydance Merger Extended 90 Days as FCC Approval Remains Pending

The $8 billion media merger faces regulatory delays and legal challenges, with political factors influencing the FCC's review process.

Paramount Global and Skydance logos are seen in this illustration taken December 17, 2024. REUTERS/Dado Ruvic/Illustration/File Photo
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Overview

  • The merger agreement between Paramount Global and Skydance Media has been automatically extended by 90 days, with the deadline now set for July 7, 2025.
  • The Federal Communications Commission (FCC) remains the final regulatory body yet to approve the deal, following prior clearances from the SEC and European Commission.
  • Political considerations, including FCC Chairman Brendan Carr's focus on anti-DEI policies and a lawsuit involving Donald Trump, are reportedly influencing the FCC's decision-making process.
  • A class action lawsuit filed by public shareholders alleges fiduciary breaches by Paramount's special committee for rejecting a higher bid from Project Rise Partners.
  • The merger involves a complex $28 billion financial arrangement, with significant investments from the Ellison family and RedBird Capital Partners.