Skydance, Paramount Deal Is Now One Year Old

The clock is now ticking on a second 90-day extension for the Paramount Global and Skydance Media merger.

The merger agreement Announced July 7, 2024 included two automatic 90-day extensions if all conditions except regulatory approvals are met. The first extension began on April 8, 2025, and the second extension started Monday, extending the deadline to October 4, 2025. If the deal isn't finalized by then, or if regulators block it, either party can terminate the agreement, with Paramount facing a $400 million termination fee.

Regulatory Status: The Securities and Exchange Commission (SEC) and the European Commission have approved the deal, but the FCC's approval is still pending, primarily due to the broadcast license transfer.

Recent Developments: A $16 million settlement between CBS and Donald Trump, announced last week, may ease regulatory discussions, as Trump's lawsuit against CBS over a "60 Minutes" interview was seen as a potential hurdle.

Current Status: The merger is now in its second 90-day extension, with the current window closing on October 4, 2025. The delay has sparked speculation about political influences, though no definitive evidence supports this.

Stakeholder Concerns: Some shareholders, including New York City pension funds, have filed lawsuits alleging that Paramount's board favored Shari Redstone's interests over public shareholders, potentially undervaluing the company. A competing $13.5 billion offer from Project Rise Partners was not considered, fueling legal disputes.

The current extension provides additional time to resolve these regulatory and legal challenges, with the deal's outcome still uncertain.