F.C.C. Approves Skydance’s Merger With Paramount

Media|F.C.C. Approves Skydance’s Merger With Paramount

The Federal Communications Commission said Thursday it would allow Paramount to merge with the Hollywood studio Skydance, clearing the way for one of the most highly scrutinized media deals in the last decade.

Brendan Carr, the chairman of the F.C.C., said in a statement that the agency approved the deal after receiving assurances from Skydance that the new company was committed to unbiased journalism and would not establish programs related to diversity, equity and inclusion.

“Americans no longer trust the legacy national news media to report fully, accurately and fairly,” Mr. Carr said in the statement. “It is time for a change. That is why I welcome Skydance’s commitment to make significant changes at the once storied CBS broadcast network.”

Mr. Carr’s approval was the biggest remaining hurdle for the multibillion-dollar deal, which has generated near-weekly headlines since it was announced last July. And it effectively ushers in the beginning of a new family dynasty for Paramount, which has been controlled by the Redstone family for decades. David Ellison, son of the tech billionaire Larry Ellison, plans to take control of the company when the deal closes.

In recent weeks, Paramount has been engulfed in turmoil stemming from the company’s strained relationship with the Trump administration. Earlier this month, the company paid $16 million to settle a lawsuit brought by President Trump. Critics — including CBS’s “Late Night” host Stephen Colbert — said the settlement was effectively a payoff to secure approval from the Trump administration, claims the company flatly rejected.

Mr. Colbert said last week that the company was ending his show next year, leading some prominent Democrats to claim that the move was politically motivated. The company has denied that, saying the program was canceled for financial reasons.

In recent days, Skydance took steps to assuage Mr. Carr, telling the agency that it would install an ombudsperson at the news division to ensure fairness in it journalism and committing to avoiding diversity, equity and inclusion programs at the company. In his statement, Mr. Carr lauded these steps, saying it would “begin the process of earning back Americans’ trust.”

Anna M. Gomez, a Democratic commissioner on the F.C.C., said in a statement that the F.C.C. had used “its vast power to pressure Paramount to broker a private legal settlement and further erode press freedom.”

“Even more alarming, it is now imposing never-before-seen controls over newsroom decisions and editorial judgment, in direct violation of the First Amendment and the law,” Ms. Gomez said.