Rob McDowell, a former FCC Commissioner and current partner at Cooley LLP, has issued a stark warning about the precarious future of Paramount Global should its proposed $8 billion merger with Skydance Media fail to materialize.
Speaking at Gabelli Funds’ 17th Annual Media & Sports Symposium in New York, McDowell described Paramount as a “melting ice cube” if the deal collapses, signaling potential erosion of its market value and strategic viability without a swift resolution.
According to The Wrap, Paramount Global’s executives have projected that the $8 billion merger with Skydance Media, announced earlier in 2025, is slated to close in the first half of the year, pending regulatory approval from the FCC. The review is critical due to the required transfer of Paramount’s broadcast licenses, which include CBS television stations.
According to The Wrap, Paramount Global’s executives have projected that the $8 billion merger with Skydance Media, announced earlier in 2025, is slated to close in the first half of the year, pending regulatory approval from the FCC. The review is critical due to the required transfer of Paramount’s broadcast licenses, which include CBS television stations.
The merger aims to bolster Paramount’s position in a competitive media landscape by combining its extensive portfolio—spanning CBS, Paramount Pictures, and streaming service Paramount+—with Skydance’s production expertise, known for hits like Top Gun: Maverick.
The Trump lawsuit has introduced a complex political dimension to the merger. The Wall Street Journal reported Thursday, that Paramount offered to settle the lawsuit for $15 million, an amount Trump rejected, reportedly demanding at least $25 million and a public apology from CBS.
Settlement negotiations have raised alarms among lawmakers, with members of Congress and the California State Senate warning that any deal to secure FCC approval for the Skydance merger could violate federal anti-bribery laws. Such concerns stem from fears that Paramount might leverage settlement concessions to curry favor with the Trump administration, which holds sway over FCC decisions.
McDowell’s “melting ice cube” metaphor underscores the risk that prolonged delays or a failed merger could diminish Paramount’s value, leaving it vulnerable in a rapidly consolidating media industry. He further posed critical questions about Paramount’s future: “If this is not the deal for Paramount, then it’s a melting ice cube. What would be the next price? Who would be the next buyer?”
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.