Paramount Sees Skydance Merger Happning Next Month

Paramount Global has expressed confidence that its $8 billion merger with Skydance Media will close by June 2025, despite regulatory hurdles and legal challenges. 

This expectation was reiterated in Paramount's first-quarter 2025 earnings report, where the company swung to a profit of $550 million, driven by strong performances in its film and streaming businesses, including Gladiator II and Sonic the Hedgehog 3. 

The merger, announced on July 7, 2024, aims to create "New Paramount," valued at approximately $28 billion, with Skydance acquiring National Amusements for $2.4 billion and merging with Paramount in a two-step process. David Ellison, Skydance’s CEO, will lead the combined company as chairman and CEO, with Jeff Shell as president.

Paramount’s belief in the June 2025 closure stems from progress in regulatory approvals and the deal’s structure. The Securities and Exchange Commission (SEC) and the European Commission approved the transaction in February 2025, finding no significant anti-competitive concerns. However, the deal awaits approval from the Federal Communications Commission (FCC), which remains a key obstacle. The merger agreement, initially set to expire on April 7, 2025, was automatically extended by 90 days to July 7, 2025, as regulatory approvals were the only outstanding condition. A second 90-day extension is possible if needed.

Brendan Carr

Despite the optimism, challenges persist. FCC Chairman Brendan Carr, appointed by President Donald Trump, has linked the merger review to a "news distortion" complaint against CBS’s 60 Minutes for its handling of a Kamala Harris interview, prompting a $20 billion lawsuit from Trump. 

Carr has also scrutinized the deal over concerns about Chinese company Tencent’s minority stake in Skydance and Paramount’s diversity, equity, and inclusion (DEI) policies, which he claims could violate FCC regulations. Paramount has adjusted its DEI programs to align with Trump administration directives, but Carr’s stance introduces uncertainty. 

Additionally, a Delaware lawsuit from New York City pension funds alleges the deal undervalues Paramount and benefits controlling shareholder Shari Redstone at the expense of minority shareholders. While a judge declined to block the merger, an expedited schedule was set to consider a rival $13.5 billion bid from Project Rise Partners, though Paramount’s board has rejected engaging with this offer, citing its binding agreement with Skydance.