David Ellison stepped within reach of his hard-fought prize, Paramount Global, after winning regulators\u2019 blessing for his Skydance Media\u2019s $8-billion takeover of the storied media company.<\/p>\n
The Federal Communications Commission, led by President Trump-appointed Chairman Brendan Carr<\/a>, approved the Skydance-Paramount merger Thursday after months of turmoil and a monumental collision between the president\u2019s broad powers and press freedoms. <\/p>\n Carr\u2019s consent came just three weeks after Paramount agreed to pay Trump $16 millio<\/a>n to settle the president\u2019s lawsuit<\/a> over edits to a \u201c60 Minutes\u201d broadcast. Trump had claimed CBS producers doctored the October interview with then-Vice President Kamala Harris to boost her election chances. CBS denied his allegations, <\/a>saying the edits were routine.<\/a> <\/p>\n 1st Amendment experts called Trump\u2019s suit \u201cfrivolous.<\/a>\u201d But, after months of internal upheaval, Paramount capitulated<\/a>. The move was widely seen as a prerequisite<\/a> for Skydance to win FCC approval and push the Paramount-Skydance merger over the finish line. <\/p>\n Trump has said on social media that, as part of the settlement, he also expects the new owners to provide another $20 million in public service announcements and other free programming.<\/p>\n The FCC approval clears the final regulatory hurdle for the acquisition that will bring another technology titan <\/a>to Hollywood. <\/p>\n Carr authorized the transfer of Paramount\u2019s CBS television station licenses to Larry Ellison, Oracle\u2019s co-founder<\/a> who ranks among the world\u2019s richest men, and his family.<\/p>\n \u201cAmericans no longer trust the legacy national news media to report fully, accurately, and fairly. It is time for a change,\u201d Carr said in a statement. \u201cThat is why I welcome Skydance\u2019s commitment to make significant changes at the once storied CBS broadcast network.\u201d<\/p>\n The FCC commissioners voted 2-1 in favor of the deal. Two Republicans, Carr and Olivia Trusty, voted yes, while Anna Gomez, the lone Democrat on the panel<\/a>, dissented. <\/p>\n \u201cAfter months of cowardly capitulation to this Administration, Paramount finally got what it wanted,\u201d Gomez said in a statement. \u201cUnfortunately, it is the American public who will ultimately pay the price for its actions.\u201d<\/p>\n The Ellisons\u2019 takeover of Paramount is expected to be complete in the coming days. <\/p>\n FCC approval came the day after Comedy Central\u2019s \u201cSouth Park<\/a>\u201d launched its 27th season with a scathing episode that skewered both Paramount and Trump<\/a>, who was depicted nude and in bed with Satan, mirroring the show\u2019s past portrayals of Saddam Hussein.<\/p>\n Santa Monica-based Skydance, which is owned by the Ellison family<\/a> and backed by private equity firm RedBird Capital Partners, faces an uphill slog to restore Paramount to its former glory. Years of programming underinvestments, management missteps and ownership turmoil have taken a heavy toll. <\/p>\n Viewers\u2019 shift to streaming<\/a> has upended Paramount\u2019s TV networks: CBS, Comedy Central, Nickelodeon, MTV and BET. Paramount Pictures lags behind Disney, Universal and Warner Bros. <\/p>\n Sumner Redstone\u2019s family will exit the Hollywood stage after nearly 40 years. The pugnacious mogul from Boston, who died five years ago<\/a>, presided during an era of entertainment excesses in the 80s, 90s and early aughts \u2014 when Paramount released beloved blockbusters and cable television was in its heyday.<\/p>\n For a stretch this spring, it seemed the Skydance deal could unravel<\/a>.<\/p>\n The FCC\u2019s review had stalled amid the legal wrangling over Trump\u2019s lawsuit. Carr, in one of his first moves as chairman, separately opened an FCC inquiry into alleged news distortion with the \u201c60 Minutes\u201d Harris interview \u2014 putting CBS uncomfortably under the microscope.<\/p>\n Paramount\u2019s controlling shareholder Shari Redstone (Sumner\u2019s daughter), and some Skydance executives, urged Paramount to settle. But CBS News executives refused to apologize to Trump for the \u201c60 Minutes\u201d edits, saying CBS journalists did nothing wrong. The settlement, which steers money to Trump\u2019s future presidential library<\/a>, did not include an apology from CBS News or Paramount.<\/p>\n Two high-level CBS News executives departed and three progressive U.S. senators demanded answers. Sen. Elizabeth Warren (D-Mass.) and the others lambasted the settlement talks, saying that paying Trump money to end a \u201cbogus\u201d lawsuit simply to get a merger approved could be akin to paying a bribe.<\/p>\n The winds shifted in June. <\/p>\n David Ellison, Larry\u2019s 42-year-old son<\/a>, talked briefly with Trump at a UFC fight in New Jersey. Days later, Trump talked favorably about his friendship with Larry Ellison and the Paramount-Skydance deal.<\/p>\n \u201cEllison\u2019s great,\u201d Trump told reporters in mid-June<\/a>. \u201cHe\u2019ll do a great job with it.\u201d<\/p>\n David Ellison last week met with Carr in Washington to persuade him that Paramount would be in good hands. They discussed the firm\u2019s commitments and management philosophies. Skydance also gave assurances that Chinese investors would not have a say in the company\u2019s affairs. <\/p>\n Last week, CBS separately said it was canceling \u201cThe Late Show With Stephen Colbert<\/a>,\u201d in May. The company said the move was financial, but conservatives and progressives alike questioned the timing due to the pending merger and Colbert\u2019s pointed barbs at Trump.<\/p>\n Skydance outlined its planned changes at Paramount in a letter this week to Carr. <\/p>\n