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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.
Inside Paramount, tensions are mounting as the company enters mediation with Trump, expected to begin next week. Shari Redstone, Paramount’s non-executive chair, has pushed for a resolution, reportedly viewing a settlement as essential to unlocking FCC approval. She has also become increasingly critical of CBS News content, following reports that some executives see the network’s editorial choices as a liability in regulatory talks.
The departure of 60 Minutes Executive Producer Bill Owens this week, citing a loss of editorial autonomy, has further fuelled speculation about internal restructuring to align with merger goals.
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DEI policies under the spotlight amid political backdrop
The regulatory focus on DEI reflects a broader shift in how federal agencies, under the current administration, evaluate media consolidation. Paramount’s engagement with Florida lobbyist Brian Ballard, who helped raise over $50 million for Trump’s 2024 campaign, has drawn additional attention. Ballard’s hiring and subsequent $90,000 in lobbying payments reveal the political sensitivities surrounding the deal, particularly given Skydance’s ownership ties to David Ellison, son of Trump ally Larry Ellison.
While Redstone favours a deal with Trump, some Paramount leaders are wary. Insiders have expressed concern that a settlement, especially if it includes an apology, could be interpreted as an improper attempt to influence regulatory approval, raising the risk of legal exposure under federal anti-bribery statutes.
For HR and business leaders, the evolving situation highlights how DEI commitments, political affiliations, and editorial independence can intersect with regulatory compliance during high-stakes mergers. The outcome of Paramount’s negotiations may set new expectations for how companies balance cultural values and shareholder strategy in an increasingly politicised business environment.
