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Skydance and Paramount Dismiss Merger Objections Filed with FCC
Skydance Media and Paramount Global have formally requested that the Federal Communications Commission dismiss recent objections to their planned merger, calling the petitions meritless and constitutionally problematic.
In a January 2 filing with the FCC, the companies specifically targeted a petition from the Center for American Rights, a conservative public-interest law firm, that sought conditions on the transfer of CBS station licenses to the newly merged entity. The Center had raised concerns about what it described as CBS’s “track record of ideological bias and news manipulation” and alleged the network “has apparently engaged in illegal racial quotas for its hiring.”
The Center also expressed concerns about potential “undue foreign influence from China” on the merged company, pointing to the minority stake in Skydance held by Chinese technology giant Tencent Holdings.
In their response, Skydance and Paramount argued that the “viewpoint neutrality” conditions requested by the Center would “improperly encroach on broadcasters’ editorial discretion and is squarely foreclosed by the First Amendment and Supreme Court precedent.” They further contended that the Center’s concerns about viewpoint diversity and alleged bias “are manifestly not transaction-specific.”
“The Center’s other allegations, relating to supposed Chinese influence and ‘racial discrimination,’ have no factual foundation and are legally unavailing,” the companies stated, arguing that the Center “cannot be deemed a party in interest in this proceeding.”
The Center for American Rights had cited findings from the conservative Media Research Center claiming that CBS News coverage of Vice President Kamala Harris between July 21 and September 27 was 84% positive, while coverage of Donald Trump was “lopsidedly negative (79%).” The group requested that the FCC place approval of the merger on “probationary status” until the new corporation made “specific commitments” addressing these concerns.
Separately, the Center filed a consumer complaint regarding alleged “news distortion” by CBS News’ “60 Minutes,” claiming the program “manipulatively edited an answer by Vice President Harris in an interview.” This echoes a $10 billion lawsuit filed by former President Trump against CBS over the same interview, which CBS News has dismissed as “completely without merit.”
Brendan Carr, the FCC commissioner selected by President-elect Trump to serve as the agency’s next chair, has indicated that the conservative group’s complaint may factor into the FCC’s consideration of the merger.
Beyond the Center’s petition, Skydance and Paramount also requested rejection of objections from LiveVideo.AI, which claimed it had made “a superior bid” to acquire National Amusements Inc. (Paramount’s controlling shareholder) and alleged a “rigged sales process.” The companies dismissed these complaints as “not cognizable in this proceeding” with “vague allegations of misconduct” that are “unfounded and insufficient.”
Additionally, the companies responded to objections from Fuse Media, which alleged experiencing “self-preferencing behavior” on Paramount’s Pluto TV platform and expressed concerns the merger would harm independent programming sources. Skydance and Paramount countered that the FCC “lacks authority to impose the conditions sought by Fuse Media” as they relate to streaming services rather than broadcast licenses.
The $8 billion-plus deal, expected to close in the first half of 2025, would see Skydance and RedBird Capital Partners acquire Shari Redstone’s National Amusements Inc. before merging Paramount and Skydance. In October 2024, the companies requested FCC approval to transfer control of television broadcast licenses for CBS’s 28 owned-and-operated local TV stations to the newly merged entity.
The merger represents one of the most significant consolidations in the media industry in recent years, coming at a time of intense competition in the streaming landscape and ongoing transformation in traditional broadcast television.
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14 Comments
This seems like a complex issue with valid arguments on both sides. I’ll be curious to see how the FCC navigates the balance between free speech concerns and potential conflicts of interest.
Transparency and a robust public review process will be critical for ensuring the FCC reaches the right decision.
I’m generally skeptical of media consolidation, but the companies’ free speech arguments seem valid. Still, the FCC needs to carefully consider the full scope of potential impacts.
It will be interesting to see how this plays out and what precedents the FCC’s decision may set for future media mergers.
As an investor, I’ll be watching this closely. Mergers in the media space can have big implications, both positive and negative, so I hope the FCC conducts a rigorous review.
The claims of foreign influence are particularly concerning and should be investigated thoroughly. Transparency is key here.
This looks like a complex situation with valid concerns on both sides. I appreciate the companies wanting to protect editorial independence, but the allegations of bias and influence also warrant scrutiny.
It will be important for the FCC to balance these interests and make a fair, well-reasoned decision in the public interest.
This is a complex issue with valid concerns on both sides. I hope the FCC is able to find a balanced approach that protects editorial independence while also addressing potential conflicts of interest.
Maintaining a diversity of media voices is important for a healthy democracy, so this decision will be closely watched.
Interesting to see the back-and-forth around this proposed merger. Curious to hear more about the claims of bias and foreign influence raised by the petitioners. I wonder how the FCC will rule on this.
The companies’ response about the First Amendment concerns seems reasonable, but it’s important the FCC thoroughly investigates any potential issues.
As a concerned citizen, I’m glad to see the FCC is taking a close look at this merger. The allegations of bias and foreign influence are quite troubling and deserve a thorough investigation.
Ultimately, the public interest should be the top priority in the FCC’s decision-making process here.