Unpacking the Stalled $8 Billion Paramount-Skydance Deal

Speculation swirls around the delayed $8 billion Skydance-Paramount merger, with analysts scrutinizing every move for hints about its fate. One key question: Will Paramount chair Shari Redstone settle a $20 billion lawsuit against CBS, filed by President Trump, to clear the path for regulatory approval?

At On The Money, Charles Gasperino cut through the noise. Recent “clues” about the deal’s future? Mostly meaningless.

First, Paramount’s recent layoffs—3% of its workforce—sparked theories that the deal is dead. Layoffs typically happen when a company plans to go it alone, not when a merger looms. But insiders say these cuts were always planned. Skydance intended the same reductions to streamline Paramount post-merger. With the deal stalled, Paramount acted first. So, scratch that clue.

Second, Skydance CEO David Ellison’s appearance ringside at a UFC event alongside Trump raised eyebrows. Some speculated it signaled Trump’s eagerness to greenlight the deal, given his ties to David’s father, Larry Ellison. But Elon Musk was there too, despite recently clashing with Trump. Musk’s presence didn’t mean a thaw, and neither does Ellison’s. Another dead end.

Paramount’s leadership, minus Redstone (who’s recused herself due to her potential payout), is wary of settling Trump’s lawsuit over a “60 Minutes” interview edit. They fear it could look like bribery, exposing the company to legal risks not covered by insurance. Yet, the layoffs and Ellison’s UFC cameo have little bearing on the deal’s outcome, sources say.

Meanwhile, it's being reported Paramount has postponed a potential $35 million settlement with President Trump in his lawsuit against its CBS affiliate, sources told The Post, citing fears of legal repercussions. Paramount’s reluctance has led Trump’s legal team to hold firm on their demands, even seeking a higher payout to resolve the ongoing dispute. Despite the impasse, both parties are actively negotiating, per a regulatory filing, with a breakthrough still possible.