David Bridges
The Federal Communications Commission has given the green light for Skydance’s ambitious $8 billion acquisition of Paramount Global and its affiliated entities, which includes the prominent CBS Network. In a recent statement, FCC Chairman Brendan Carr expressed his enthusiasm for this transformative initiative, stating he appreciates Skydance’s commitment to implement significant reforms at the historically significant CBS broadcast network. Carr emphasized that Skydance has pledged to ensure that its news and entertainment programming will reflect a broad spectrum of perspectives, both politically and ideologically. He further noted that Skydance has made a commitment to refrain from introducing diversity, equity, and inclusion (DEI) programs, which has been a contentious topic in recent media discussions.
Chairman Carr highlighted the growing skepticism among Americans towards the traditional national news media, asserting that trust in these institutions has waned due to perceived biases. He pointed out that the commitments made by Skydance, if executed effectively, could guide CBS towards operating in the public interest, concentrating on fair, impartial, and fact-based journalism. This shift, according to Carr, would initiate a long-overdue process of restoring public trust. His statement also indicated that the FCC is taking steps to eradicate harmful forms of DEI discrimination, which aligns with broader reform objectives.
In contrast, FCC Commissioner Anna M. Gomez publicly voiced her concerns regarding the acquisition, expressing her inability to support the deal due to the financial settlement and other contentious concessions that Paramount made in order to resolve a seemingly unfounded lawsuit. Earlier this year, Paramount settled a $16 million lawsuit filed by Donald Trump concerning a CBS interview with Kamala Harris during the 2020 presidential election. Trump’s legal team accused the network of manipulating her responses to create confusion, misleading the audience about her statements.
Legal analysts suggested that Paramount may have opted for the settlement to facilitate smoother approval for the merger. Upon the announcement of the acquisition, the company indicated plans to enhance its streaming technology while also implementing cost-cutting measures under newly appointed CEO David Ellison. Despite investing heavily in its streaming service Paramount+, the company has yet to achieve profitability. They clarified that the $16 million settlement was intended for Trump’s future presidential library rather than for direct or indirect payments to him.
Commissioner Gomez criticized the FCC for what she described as an unprecedented maneuver, stating that it exerted undue pressure on Paramount to secure a private legal settlement, which she believes undermines press freedom. She argued that the agency is overstepping its boundaries by intervening in employment matters that should fall under the jurisdiction of other government bodies. Gomez raised alarms about the potential imposition of unprecedented controls over newsroom operations and editorial discretion, a move she claims violates both the First Amendment and existing laws.
She warned that the financial settlement and the approval of this acquisition could embolden those who view the government as having the authority to misuse its power for financial and ideological gains, demanding favorable treatment and securing positive media narratives. This, she argues, represents a troubling trend that jeopardizes press freedom in the United States. Gomez concluded by urging companies, journalists, and the public to resist capitulation in the face of such abuses of power, asserting that unchecked authority has no rightful place in a democratic society like America.
Daniel Mercer
Brandon Fletcher
