Yesterday (July 7) triggered the second 90-day extension of Paramount Global’s Skydance Media merger with David Ellison, which allowed regulators, company executives and the FCC to provide more time to finalize and agree to the terms of the deal. There is still a key hurdle: The FCC transfers CBS’s broadcast license to Skydance’s approval, which must come from a committee currently led by Republican Brendan Carr, who is appointed by Trump. Importantly, after Paramount’s controversial $16 million settlement with President Trump last week, any ongoing negotiations will be in line with a presumed more favorable regulatory climate.
The legal conflict with the president stems from Trump’s 60 minutes He claimed that the interview with then-VICE President Kamala Harris was unfair. The settlement is thoroughly reviewed, and it’s just the latest twist in the most turbulent year of the most important year in recent memory – a legend that moved from Redstone family control to the brink of a new era under the son of Oracle co-founder Larry Ellison.
Paramount has embodied everything that Old Hollywood represents, from charm to leadership of its dynasty. This is a studio for moviegoers godfather and Top Cloud TV viewers like it cheers and Fresil. But with the momentum of handing the re-rope to Skydance, Paramount is now poised to be something very different: a technologically advanced brand dedicated to reinventing itself, the industry has long started with the old rules.
Needless to say, the road is not going well at this moment. If anything, the story of how Paramount got here is not like a typical business development, but more like one of Taylor Sheridan’s soap opera dramas about Paramount+, an empire with media dynasty close to power, whose empire is carved by outsiders.
A $16 million settlement with Trump is not just about clearing legal barriers; it is also seen as a way to neutralize potential political threats. Within Paramount, there is real concern that Trump may use regulatory leverage to derail. The attention now seems far from a hypothetical. On July 3, Trump appeared to confirm a “sub-deal” with Ellison, worth $32 million to $35 million.
He refers to Charlie Gasparino of Fox’s business, first reporting on Ellison’s private commitment to support Trump’s consistent cause. Paramount denied any knowledge of this arrangement, but Trump’s comments could intensify concerns about editorial independence in CBS news. “Everything you see now has to pay tribute to the king,” said Jon Stewart. Daily performance On a recent appearance, aired at Paramount-owned Comedy Center Bill Simmons Podcast.
Stewart added that he is also preparing for anything that follows: “I’m in a place where I can do it.” [The Daily Show] Monday until the company is acquired by someone who doesn’t want to have any relationship with Daily performance. ”
South Park Creators Trey Parker and Matt Stone played the series on Comedy Center and Paramount+, and they landed on social media to slam the merged show. “This merger is [expletive] Yes [expletive] up South Park,” they wrote in an article circulating on Instagram, responding to the delayed premiere announcement. “We work in the studio, working on new episodes, and hope that fans will see them somehow. ”
The Redstone Family is unwilling to withdraw from Paramount
Most wheels started moving in late 2023, when Skydance first started merging with Paramount Global. At the time, tailoring was accelerating, streaming losses were getting bigger and bigger, and Wall Street almost lost confidence in Paramount’s long-term strategy.
Then – Chief Ceo Bob Bakish held merger talks with several potential partners including Warner Bros. Discovery. But it was Skydance’s interest that put everything in trouble.
From the beginning, the deal was complicated by one name: Redstone. Paramount’s controlling shareholder Shari Redstone owns a family company that effectively owns the company’s keys. Any buyer must first make her whole, laying the foundation for months of board drama, internal power struggles and shareholder confusion.
Skydance’s original offer was about $2 billion in cash and stock, triggering an immediate rebound. Investors objected to these terms. Paramount’s special committee stalled. According to reports, in April 2024, Bakish was kicked out due to disagreements with Redstone. The deal collapsed and competitor bidders began to hover.
Redstone seemed to be open to anything–until she didn’t. Then, in a quiet but dramatic reversal, Skydance negotiations were revived. This time, the restructuring transaction provides shareholders with better spending and more direct access. By July 2024, a deal was reached: Skydance would have a $8 billion deal with Paramount, ending decades of grip for the Redstone family in the studio.
For many, Redstone is synonymous with Paramount. Sumner Redstone has built a massive media empire with a cruel focus. His daughter Shari has spent many years defending the legacy. But in the end, she couldn’t even stop the trend. Streaming has not been delivered, advertising revenue is shrinking, and tech giants such as Netflix, Apple and Amazon have surpassed Paramount at every turn.
David Ellison proposes a vision centered on AI-assisted production, focusing on the tentacles and reinventing Paramount+ into a slimmer, more viable streaming platform. Despite this, there are still major obstacles. The layoffs have affected hundreds of people. And, whether Skydance can actually succeed in a successful integration—the blending of Hollywood’s old-fashioned Hollywood with a tech-looking book is far from a guarantee. Ellison and his team will face pressure in all directions: investors, regulators, unions and the press.
But for now, at least for now, Paramount’s future is the first time that it begins to form, even if it means giving up everything that was once.
