CBS/Paramount Deal Done After Bowing Down to Trump

The Federal Communications Commission on Thursday approved the contentious $8.4 billion merger of Paramount Global and Skydance Media, but the green light came only after the media giants made a series of significant concessions widely seen as appeasing President Donald Trump.

The deal, which places CBS, Paramount Pictures, and cable networks like MTV and Comedy Central under Skydance's control, had been stalled amid allegations of anti-Trump bias at CBS News. Its path was ultimately cleared after a cascade of moves by the companies. CBS's parent company agreed to a multi-million dollar payout to President Trump, Skydance Media committed to providing millions in free advertising for the administration, and Paramount eliminated its diversity, equity, and inclusion (DEI) programs.

The approval from the FCC, led by Trump-nominated chairman Brendan Carr, was secured by a 2-1 vote. In a statement, Carr signaled that the changes at CBS were a key factor. “Americans no longer trust the legacy national news media to report fully, accurately, and fairly,” Carr wrote. “It is time for a change. That is why I welcome Skydance’s commitment to make significant changes at the once storied CBS broadcast network.”

Those changes were substantial. Three weeks ago, Paramount paid $16 million to settle a $20 billion lawsuit filed by President Trump over a "60 Minutes" interview with Vice President Kamala Harris, which the administration alleged was deceptively edited. Further sweetening the deal, Skydance CEO David Ellison assured regulators of a new commitment to "unbiased journalism" and agreed to appoint an ombudsman to review complaints of editorial bias. In a direct nod to the administration's stance, Paramount also dismantled its DEI initiatives, stating the move was to align with the view that such affirmative action policies are discriminatory.

While the deal ensures media heiress Shari Redstone will walk away with $1.75 billion in cash, it casts a shadow of uncertainty over local television markets across the country. The FCC's approval includes the transfer of broadcast licenses for 28 CBS owned-and-operated stations. With the new ownership demonstrating a clear willingness to bend to political pressure from Washington, the future editorial independence of these local newsrooms is now a murky and pressing question. It remains unclear how the new corporate mandate for "unbiased journalism" will be interpreted at the local level and whether it will chill critical reporting.

The merger's approval follows other recent shake-ups at the network, including last week's cancellation of "The Late Show with Stephen Colbert," whose host was a frequent and vocal critic of President Trump. While CBS cited the show's reported $40 million annual loss as a "purely financial decision," the timing has raised eyebrows in the context of the politically charged merger. The deal is expected to close by early August, marking a seismic shift in the American media landscape.