skydance

Published on
12/09/2025 – 9:49 GMT+2

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Shares in Warner Bros Discovery surged nearly 30% in New York on Thursday after the Wall Street Journal reported that Paramount Skydance was preparing to buy its rival.

Paramount Skydance’s stock also rose around 16% in daily trading.

The majority cash bid is reportedly for the entire company, including its movie studio and cable networks like HBO and CNN. Warner said late last year that it planned to split into two operating divisions: one focused on cable TV and the other on streaming and studios.

Paramount’s offer is allegedly backed by Oracle’s Larry Ellison, who briefly became the world’s richest person this week, overtaking tech tycoon Elon Musk. The billionaire’s son, David Ellison, runs Paramount Skydance.

The WSJ noted that a bid hasn’t yet been submitted and that plans could still fall apart.

Paramount Skydance’s market value was $19 billion (€16bn) as of Thursday’s close, while that of Warner Bros Discovery was roughly $40bn (€34bn).

Paramount and Warner Bros did not immediately respond to requests for comment regarding reports of the acquisition.

If approved, a merger between the two firms would mark the biggest consolidation in Hollywood since Walt Disney bought the entertainment division of Fox Corp. in 2019.

Scale would allow the new company to compete with the likes of streaming giants Netflix and Disney as the industry is redefined by changes in traditional viewing habits.

Paramount Skydance merger

The report comes just weeks after the finalisation of a $8bn (€7bn) merger between movie giant Paramount and independent film studio Skydance Media.

This acquisition became particularly controversial after it was linked to a legal dispute over a CBS News interview.

In July, Paramount paid $16 million (€14mn) to settle a defamation case against US President Donald Trump. The Republican leader claimed that Paramount’s CBS News in November edited a “60 Minutes” news programme with then-vice president Kamala Harris in a way that was deliberately deceptive.

Paramount said in a statement that the settlement with Trump was “completely separate from, and unrelated to, the Skydance transaction and the FCC approval process”. 

Even so, critics of the settlement lambasted it as a veiled bribe to appease Trump and allow the merger to go ahead.

Despite the payout, Paramount’s settlement did not include a statement of apology or regret.

Skydance did, however, declare it would end Paramount’s diversity programmes and appoint an ombudsman to review complaints of bias. Paramount also cancelled the left-leaning Late Show with Stephen Colbert ahead of the merger approval.

Critics viewed the moves as further attempts to win over President Trump, although Paramount denied that the Colbert show was cancelled for political motives.

Paramount has named Kenneth R. Weinstein, former head of a conservative-leaning Washington think tank, to be ombudsman for CBS News, fulfilling a condition of winning the Trump administration’s approval for an $8-billion merger.

The company announced Monday “that complaints from consumers, employees and others” about CBS News stories will go to Weinstein, who will help determine if remedial action is necessary.

Weinstein, who served as president and chief executive of the Hudson Institute, will report to Jeff Shell, who is president of Paramount under new owner and CEO David Ellison.

Weinstein will address complaints about news coverage in consultation with Shell, CBS President and CEO George Cheeks and CBS News Executive Editor Tom Cibrowski.

Paramount buyer Skydance Media agreed to appoint an ombudsman in order to get regulatory clearance for its acquisition of the media company, which closed in August.

The Federal Communications Commission said Skydance agreed to commit to “viewpoint diversity, nondiscrimination and enhanced localism” in its news coverage when the agency announced its approval of the deal.

“Americans no longer trust the legacy national news media to report fully, accurately, and fairly. It is time for a change,” FCC Chairman Brendan Carr said in a statement at the time of the approval. “That is why I welcome Skydance’s commitment to make significant changes at the once storied CBS broadcast network.”

Under Skydance’s ownership, CBS News has already shown a willingness to respond to Trump White House beefs with its coverage. On Friday the division announced a new policy for its Washington public affairs program “Face the Nation,” which will no longer edit taped interviews.

The policy shift came after U.S. Department of Homeland Security Secretary Kristi Noem complained that her Aug. 31 “Face the Nation” interview, which was trimmed for time, deleted harsh allegations against Kilmar Abrego Garcia, the Maryland man wrongly deported to his native El Salvador. He was returned to the U.S., where he faces deportation efforts.

In addition to his work at the Hudson Institute, where he still holds a chair, Weinstein served on multiple advisory boards including the United States Agency for Global Media when it was known as the Broadcasting Board of Governors. The agency, currently headed on an interim basis by Kari Lake, oversees the funding for government-run media outlets such as Voice of America.

Weinstein also holds a doctorate in government from Harvard University and has taught political theory at Georgetown University and Claremont McKenna College.

“I’ve known [Weinstein] for many years and have respect for his integrity, sound judgment and thoughtful approach to complex issues,” Shell said in a statement. “Ken brings not only a wealth of experience in media and beyond but also a calm measured perspective that makes him exceptionally well-suited to serve as our Ombudsman.”

Aug. 8 (UPI) — Skydance Media and Paramount Global have completed their merger, creating a new media conglomerate and ending months of turmoil over the deal that has drawn allegations of corruption directed at the Trump administration.

The new company — Paramount, a Skydance Corporation — began trading on the Nasdaq under the ticket symbol PSKY on Thursday, the day the merger completed.

“Today marks an exciting and pivotal moment as we prepare to bring Paramount’s legacy as a Hollywood institution into the future of entertainment,” David Ellison, CEO and chairman of Paramount, a Skydance Corporation, said in a statement.

“It is truly an honor and a privilege to help lead this iconic brand into its next chapter.”

Skydance announced the deal in July of last year, but the merger was hung up as President Donald Trump sparred with CBS News, a Paramount Global subsidiary.

Trump sued CBS News during his re-election campaign for $10 billion over the editing of a 60 Minutes interview with his political opponent, Democrat Kamala Harris. He later upped the damages to $20 billion after winning re-election.

Despite many saying it was litigation that was “meritless” and that Trump wouldn’t win, Paramount Global reached a $16 million settlement with Trump last month. The president then said Skydance has pledged $20 million more in advertising, PSAs and other programming, for a total of $36 million.

The deal attracted allegations from Democrats and critics that it was a bribe and an attack on free speech.

After the settlement was reached, the FCC voted 2-1 in favor of the merger, with the commissioners stating that Skydance has made several assurances to the Trump administration over content and that it will not establish any diversity, equity and inclusion policies — an ideology that seeks to create inclusion environments that the far-right president has been seeking to remove from both public and private sectors on the grounds of alleged discrimination.

Commissioner Anna Gomez, who assumed office under the Biden administration, lambasted the merger in a warning that it will not be the last time Trump threatens the First Amendment.

In a statement Thursday, she said the completion of the Skydance-Paramount merger marks the final chapter “of a dark moment in our nation’s history.”

She said the new company is “born in shame” for trading away First Amendment principles for profit, while agreeing to “never-before-seen forms of government control over newsroom decisions and editorial judgement.”

A so-called government-approved “truth arbiter” will be at CBS, with the role of ensuring journalists “do not criticize this administration or express views that conflict with its agenda,” she said.

“Sadly, this will not be the end of this administration’s campaign of intervention in media to silence critics, gain favorable coverage and impose ideological conformity on newsrooms that should remain independent,” she said.

“With longstanding institutions like CBS compromised in this way, it will be up to us — as citizens — to hold this administration accountable for its abuses.”

The announcement also comes as Trump has targeted public broadcasting.

In May, he signed an executive order to halt funding to PBS and NPR, while calling the public news broadcasters “biased.”

David Ellison finally clinched his prize Thursday, completing Skydance Media’s $8-billion takeover of the historic Paramount.

But the tech scion immediately faced questions about President Trump’s boast that he expects $20 million in free advertising and programming as part of a settlement to end Trump’s lawsuit over CBS “60 Minutes” edits. The settlement cleared the way for Skydance’s takeover of the company that, in addition to CBS, includes MTV, Comedy Central and the storied Paramount Pictures.

Last month, Paramount paid $16 million to settle the lawsuit, which 1st Amendment experts said had no merit. Three weeks later, Ellison’s acquisition of Paramount was approved by federal regulators.

If Skydance participated in such a deal to give free public service announcements to Trump to settle his “60 Minutes” lawsuit, viewers are going to have to watch CBS to find out.

The first question Ellison, the newly minted chairman and chief executive of Paramount, fielded from reporters during a news briefing Thursday was about the purported PSAs. Ellison would not directly answer it.

“We are not going to politicize anything today,” Ellison said at the event held at Paramount headquarters in Times Square in New York.

Paramount Global handled the settlement and Skydance was not involved “in any way,” Ellison said. But Trump — who has a friendly relationship with Ellison’s father, Larry — has proclaimed numerous times that he’s been promised $20 million in free air time for public service announcements that promote causes favored by the White House. Trump’s former agent Ari Emanuel also helped Ellison make its case to the president to allow the deal to go forward.

Ellison and the other top executives stated their support for the news division at the news conference. Ellison said CBS News and “60 Minutes” were among the first stops on his tour of the company’s offices after the deal was closed.

As for the news ombudsman that Skydance agreed to as part of the terms to get approval, Paramount’s new president, Jeff Shell, said the position should not be viewed as a censor.

“The ombudsman is meant to be a transparency vehicle, not an oversight vehicle,” Shell said. “We do believe in transparency.”

Asked how Skydance will handle the ongoing attacks on mainstream media that continue to come from the White House, Ellison said the company will stand its ground.

“We’re obviously going to be fierce defenders of our talent,” Ellison said. “We always have been.”

Before the news conference, Ellison put out a mission statement for the merged company, promising to combine the company’s storied movie and TV properties with technological prowess. Paramount is also the home of several iconic but aging cable brand names, including MTV, Nickelodeon and Comedy Central.

“Moving forward, we will work with conviction and optimism to transform Paramount into a tech-forward company that blends the creative heart of Hollywood with the innovative spirit of Silicon Valley,” Ellison wrote.

The immediate challenge facing Skydance will be building the scale of Paramount+, which, despite a decent number of popular shows, has lagged in the streaming competition led by Netflix and Amazon Prime.

Ellison promised the direct-to-consumer offering can be “a leading global streaming service.”

The mogul is taking over the most-watched television network in CBS, but like the rest of the legacy media industry, it’s fighting the migration of viewers to streaming.

Ellison’s note made a point of praising “60 Minutes,” saying it has “a long tradition of impactful reporting led by seasoned journalists committed to accuracy, integrity, and public trust” and expressed thanks to the news division for continuing to toil through the controversy.

“We take immense pride in CBS News’ legacy of impactful journalism and look forward to continuing to foster a newsroom culture where journalists are empowered, trusted, and equipped to do their best work,” Ellison wrote.

The new company is now called Paramount, a Skydance Corp, with its stock trades under the PSKY ticker. Shares were trading down about 3%, to $11.25, in midday trading.

According to Ellison and his private equity Paramount investors, RedBird Capital Partners, the company will soon be positioned to reach new heights.

Ellison’s play for the studio began nearly two years ago during Hollywood’s summer of labor unrest, when then-controlling shareholder Shari Redstone’s family enterprise, National Amusements, found itself in a cash crunch after Paramount halted its dividend to its investors.

In December 2023, Redstone turned to Paramount’s board to approve the Skydance transaction. That triggered another fraught process as board members agonized over the structure of a deal that would reward rank-and-file shareholders — not just the Redstones.

The deal was finally signed July 7, 2024. As part of the Skydance buyout, the Redstones’ National Amusements Inc. was paid $2.4 billion. After the firm’s considerable debts are paid, the family should come away with about $1.75 billion.

Paramount shareholders will receive $4.5 billion. Skydance and RedBird Capital Partners also agreed to inject $1.5 billion into Paramount’s balance sheet to help pay down debt.

“Our investment in Paramount and long-term partnership with the Ellison family reflects our deep conviction in the value of world-class intellectual property and the potential to unlock substantial growth,” RedBird founder Gerry Cardinale said in a statement.

The entertainment company Paramount Global is expected to close its $8bn merger agreement with Skydance Media on August 7, a date that marks two weeks after the administration of President Donald Trump gave its approval.

On Friday, the two companies announced the final stage of the yearlong deal, which was first unveiled in July 2024.

The merger is considered a massive shake-up in the media landscape of the United States, drawing to a close the reign of the powerful Redstone family over the Paramount entertainment empire.

But the merger has garnered even more attention in recent weeks for its political backdrop.

On Thursday, the Federal Communications Commission (FCC) gave the green light for the merger to go forward, after a series of moves under Paramount that were widely interpreted as concessions to the Trump administration.

The FCC is technically an independent agency of the federal government, but since taking office in January for his second term, President Trump has sought to bring such agencies under his influence, including by appointing loyal allies to their leadership.

That put the fate of the Paramount-Skydance merger in question, particularly given Trump’s combative relationship with CBS Broadcasting Inc, one of Paramount’s premier properties.

Conflicts over content

Trump has long taken an adversarial approach to the news media, and CBS’s flagship news programmes were no exception.

Some of those tensions came to a head in the final weeks of the 2024 presidential election, when Trump, a Republican, was facing off against Democratic contender Kamala Harris.

The TV news magazine 60 Minutes had a tradition of interviewing each of the major party nominees for the presidency in the lead-up to the vote, and it had invited both Trump and Harris to participate.

Harris accepted the invitation, but 60 Minutes said Trump cancelled his scheduled interview. Steven Cheung, a spokesperson for Trump, disputed that characterisation.

“There were initial discussions, but nothing was ever scheduled or locked in,” Cheung wrote on social media. “They also insisted on doing live fact checking, which is unprecedented.”

The back-and-forth escalated when 60 Minutes aired two different cuts from its interview with Harris.

One version, which aired on a sister programme, Face The Nation, featured more of Harris’s answer about her stance towards Israel. The other version, which aired on the 60 Minutes broadcast, was shorter.

Trump called the different edits evidence of deceptive reporting tactics and filed a lawsuit against Paramount, CBS’s parent company.

“CBS used its national platform on 60 Minutes to cross the line from the exercise of judgment in reporting to deceitful, deceptive manipulation of news,” his court filing alleged.

“That is false,” 60 Minutes responded in a statement on its website.

“When we edit any interview, whether a politician, an athlete, or movie star, we strive to be clear, accurate and on point. The portion of her answer on 60 Minutes was more succinct, which allows time for other subjects in a wide ranging 21-minute-long segment.”

While many media experts expected Paramount to prevail on the merits of the case, the company instead sought to negotiate an end to the matter. Earlier this month, it agreed to pay $16m to Trump to go towards his future presidential library.

Shortly thereafter, another top CBS show, The Late Show with Stephen Colbert, revealed it had been cancelled, allegedly for financial reasons.

But the timing and unexpected nature of the cancellation drew speculation that it might have been an attempt to appease Trump and streamline the merger, given the fact that Colbert frequently lambasted the Republican president on his show.

Trump himself posted on Truth Social, “I absolutely love that Colbert’ got fired. His talent was even less than his ratings.”

The Late Show was consistently the top-rated late-night comedy show, and it had won a Peabody Award and multiple Emmy nods.

Days later, on July 22, Trump called for more comedians to be ousted, writing, “It’s really good to see them go, and I hope I played a major part in it!”

That same day, he confirmed he received the $16m for his 60 Minutes settlement, adding that he expected to be receive an additional $20m in free advertising and programming from the “new owners”.

South Park TV show takes aim

Within weeks of both the 60 Minutes lawsuit settlement and the cancellation of The Late Show, the FCC gave its blessing to the merger between Paramount and Skydance.

Under the merger, Skydance founder David Ellison, the son of Oracle Corporation CEO Larry Ellison, is slated to helm operations.

Upon the merger’s approval, Trump’s appointee to lead the FCC, Brendan Carr, released a statement echoing some of the president’s criticisms of major news outlets.

He also hinted that the merger would result in changes to CBS’s news output.

“Americans no longer trust the legacy national news media to report fully, accurately, and fairly,” he wrote. “It is time for a change. That is why I welcome Skydance’s commitment to make significant changes at the once storied CBS broadcasting network.”

“In particular, Skydance has made written commitments to ensure that the new company’s programming embodies a diversity of viewpoints from across the political and ideological spectrum.”

To ensure compliance with that commitment, Carr said an ombudsman would be appointed to the media giant for a period of at least two years.

Carr added that the merger between Skydance and Paramount would also bar the new mega-company from implementing diversity, equity and inclusion (DEI) policies, which are designed to create an equal playing field for people regardless of age, gender, race, ethnicity, religion or ability.

But the merger did not put an end to the scrutiny of Trump on Paramount platforms.

Hours after the FCC granted its approval, the TV channel Comedy Central aired an episode of the animated series South Park that mocked President Trump and satirised its parent company’s $16m settlement.

In one scene, an animated Jesus attempts to warn the show’s characters about Trump.

“The guy can do whatever he wants now that someone backed down, OK?” the animated Jesus says. “You guys saw what happened to CBS? Yeah, well, guess who owns CBS? Paramount! You really want to end up like Colbert?”

The Trump administration has since blasted the show as irrelevant.

David Ellison’s Skydance Media pledged to abandon all diversity, equity and inclusion programs at Paramount Global in an attempt to win government approval for its $8-billion merger.

Paramount already had scaled back diversity programs earlier this year. In a Tuesday letter to Federal Communications Commission Chair Brendan Carr, Skydance said it would go further to cancel diversity efforts.

“Paramount no longer will maintain an Office of Global Inclusion and will not have any teams or individual roles focused on DEI,” Stephanie Kyoko McKinnon, Skydance general counsel, wrote in the three-page letter to Carr. The appointee of President Trump, in one of his first moves as chair, dismantled the agency’s diversity programs and called on companies to do the same.

Kyoko McKinnon said Paramount will remove “references to DEI in its public messaging, including on its websites and social media,” along with culling DEI language in “internal messaging and training materials.”

Last week, Ellison met with Carr to press his case that Skydance and its backer RedBird Capital Partners would be strong stewards of Paramount, which includes CBS, Comedy Central, MTV, BET and the Melrose Avenue movie studio, Paramount Pictures. Skydance needs Carr’s approval for the merger and the transfer of the CBS television station licenses to the Ellison family.

Skydance separately tackled persistent complaints by conservatives about alleged news bias at “60 Minutes” and other programs.

Ellison’s firm pledged to “promote transparency and increased accountability” at CBS News. The company said it would install an ombudsman, reporting to the president of Paramount, “to receive and evaluate any complaints of bias or other concerns involving CBS” for at least two years.

Trump’s ire over edits of a “60 Minutes” Kamala Harris interview last fall nearly derailed Skydance’s takeover of Paramount. Carr opened an inquiry into alleged news distortion after Trump sued CBS in federal court in Texas.

Earlier this month, Paramount reached a $16-million settlement with Trump to resolve the dispute that caused deep divisions within Paramount and prompted high-level CBS departures. Trump boasted Tuesday on Truth Social that he anticipates receiving an additional $20 million worth of advertising and PSA time from the new owners.

During his July 15 meeting with Carr, Ellison underscored “Skydance’s commitment to unbiased journalism and its embrace of diverse viewpoints, principles that will ensure CBS’s editorial decision-making reflects the varied ideological perspectives of American viewers,” according to an FCC filing.

Skydance’s Kyoko McKinnon added: “We further reaffirm that, after consummation of the proposed transaction, New Paramount’s new management will ensure that the company’s array of news and entertainment programming embodies a diversity of viewpoints across the political and ideological spectrum, consistent with the varying perspectives of the viewing audience.”

Ellison recently met with prominent journalist Bari Weiss, reportedly to discuss Skydance acquiring her center-right online publication, the Free Press, as an alternative to traditional news sites. She started the outlet, which is often critical of DEI, after quitting her job as a New York Times opinion writer, citing intolerance of her and her more conservative viewpoints.

Also last week, late-night host Stephen Colbert learned his CBS talk show would be canceled in May. CBS has said Colbert’s cancellation, which will take place in May, was “strictly financial” and not related to the merger approval. Still, conservatives and liberals have widely questioned whether Colbert’s frequent criticisms of Trump played into the decision.

Skydance has said it didn’t have a role in the Colbert decision.

Skydance isn’t the only company under pressure to ditch diversity programs to win FCC approval for a deal.

Two months ago, telecommunications giant Verizon pledged to drop diversity efforts to gain Carr’s blessing for the company’s $20-billion takeover of Frontier Communications.

Carr separately launched probes into Walt Disney Co. and Comcast Corp.’s workplace diversity efforts.

After George Floyd’s 2020 murder in Minneapolis, Paramount and other Hollywood companies vowed to hire more people of color. Such moves were cheered by many, including those cognizant of Hollywood’s troubled history with diversity.

Paramount encouraged executives to make diverse hires and promotions, and progress toward the corporate goals was one of many factors considered when calculating bonuses. That program was dismantled last year.

For years, CBS struggled to shake its prime-time sitcom formula to build shows around white men, a la “King of Queens,” “Everybody Loves Raymond” and “Two and a Half Men.”

The network broke the pattern in 2018 with “The Neighborhood,” starring Cedric the Entertainer, and procedural drama “FBI,” starring Zeeko Zaki.

CBS also championed mentorship programs for writers and directors to build a more diverse pipeline of creators. That initiative dated to 2004.

FCC Chairman Brendan Carr has made a priority of abolishing DEI programs.

(Bloomberg via Getty Images)

Skydance promised not to set numerical goals related to race, ethnicity or gender of job applicants.

“The company is committed to ensuring that its storytelling reflects the many audiences and communities it serves in a manner that complies with non-discrimination requirements and other applicable laws,” Kyoko McKinnon wrote.

“I am very encouraged by today’s announcements,” said Daniel Suhr, president of the conservative Center for American Rights, which filed an FCC complaint about “60 Minutes” and suggested a CBS News ombudsman. “These are important steps towards better broadcasting that serves all consumers.”