Washington, D.C. — Donald J. Trump, the former U.S. President, has publicly endorsed the proposed acquisition of Paramount Global by Skydance Media, a deal spearheaded by David Ellison. The significant transaction, valued at approximately $8 billion in the context of the takeover of Paramount Global, has faced scrutiny and delays in its federal regulatory review, a process reportedly complicated by a separate, substantial $20 billion lawsuit filed by Mr. Trump against CBS, a key asset of Paramount.
Speaking to reporters gathered on the White House lawn during a flagpole installation ceremony on Wednesday, June 18, Mr. Trump addressed questions regarding the slow pace of the regulatory assessment of Skydance\”s bid for the venerable entertainment conglomerate. His endorsement marks a notable intervention in a major corporate transaction currently navigating governmental approvals.
Unpacking the Proposed Merger
The proposed merger structure involves Skydance Media, led by David Ellison, son of tech billionaire Larry Ellison, taking control of Paramount Global\”s extensive portfolio of assets. This includes the iconic Paramount film studio, the Paramount+ streaming service, the traditional broadcast network CBS, and a collection of prominent cable channels. The deal also encompasses the Ellison family\”s planned acquisition of National Amusements Inc., the investment vehicle controlled by Shari Redstone, which holds controlling voting shares in Paramount Global.
Ms. Redstone and the Paramount directors had reportedly approved the framework of this deal nearly a year ago, signaling a path forward for the media giant which has explored strategic options amidst a challenging media landscape characterized by shifts in consumption habits and intense competition in the streaming sector. The formal completion of the merger is contingent upon receiving necessary approvals from federal regulators, specifically the Federal Communications Commission (FCC), given Paramount\”s ownership of broadcast licenses through CBS.
The Shadow of the $20 Billion Lawsuit
The regulatory review process, typically focused on antitrust considerations and the public interest implications of broadcast license transfers, is understood to be uniquely entangled with Mr. Trump\”s ongoing legal action against CBS. The lawsuit, seeking a colossal $20 billion in damages, targets CBS\”s flagship news program, \”60 Minutes.\” The complaint reportedly stems from a \”60 Minutes\” interview featuring Vice President Kamala Harris.
Sources close to the situation and media reports indicate that the substantial lawsuit has become a significant factor influencing the pace and complexity of the FCC\”s review of the Skydance-Paramount merger. While the specific mechanisms linking the private litigation to the federal regulatory process are not fully transparent, the financial magnitude of the lawsuit and the identity of the plaintiff — a former president with significant political influence — appear to have introduced an unusual dimension into the standard corporate approval pathway. Reports suggest that settlement discussions related to the $20 billion \”60 Minutes\” lawsuit are currently underway, potentially aiming to resolve the legal entanglement that could impact the merger\”s fate.
Executive Departures Amid Corporate Flux
The period surrounding the ongoing merger negotiations and the complicating factor of the lawsuit has also coincided with leadership changes within key divisions of Paramount Global. Recently, two high-level CBS executives have reportedly departed their roles. These include the head of CBS News and the executive producer of \”60 Minutes,\” the very program at the center of Mr. Trump\”s lawsuit. While the company has not publicly linked these departures directly to the merger talks or the litigation, the timing has been noted within the industry as reflective of the broader period of transition and pressure facing the organization.
Mr. Trump\”s endorsement, delivered during a seemingly unrelated public appearance, underscores the intricate intersection of politics, corporate power, and regulatory oversight in major media transactions. While a presidential endorsement does not legally bind regulatory agencies like the FCC, it can signal political sentiment and potentially draw further attention to the process.
The future of Paramount Global under Skydance Media control, the resolution of Mr. Trump\”s $20 billion lawsuit against CBS, and the timeline for the FCC\”s final decision remain subjects of intense observation within the media industry and political circles. The complexity introduced by the former president\”s litigation adds an unprecedented layer of uncertainty to a major proposed shift in the ownership of significant American media assets.
