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Political pressure | FCC using proposed Skydance merger to leverage Paramount over DEI commitments

FCC using proposed Skydance merger to leverage Paramount over DEI commitments

The Federal Communications Commission (FCC) has opened discussions with Paramount Global regarding preliminary steps required to progress its long-pending merger with Skydance Media, with a focus on diversity and editorial standards playing a key role in regulatory scrutiny.

According to individuals close to the matter, FCC officials have raised concerns over Paramount’s corporate approach to diversity, equity and inclusion (DEI), suggesting that approval of the merger may hinge on the company’s willingness to limit or forego certain DEI initiatives. FCC Chairman Brendan Carr has previously urged media and telecom firms to scale back diversity commitments as part of merger negotiations.

The Paramount-Skydance deal, under FCC review for several months, involves the transfer of CBS broadcast licenses. Despite the slow progress, recent conversations between the two parties signal a potential shift in tone as they explore ways to satisfy the agency’s expectations.

News complaints and political pressure add complexity

The FCC’s deliberations are unfolding alongside an ongoing $20billion lawsuit filed by Donald Trump against CBS News. The president alleges the network edited an interview with Kamala Harris in a way that influenced the 2024 election outcome. While Carr has insisted the legal dispute and merger review are unrelated, he previously stated that a third-party complaint accusing 60 Minutes of news distortion could inform the agency’s stance on the deal.

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