FCC chairman Brendan Carr said he’s “pleased” with Skydance’s commitment to make “serious changes” at CBS as the David Ellison-led studio looks to secure regulatory approval of its pending $8 billion merger with Paramount.
“I was very pleased to see Skydance put in a filing that says, ‘If this deal goes through, they are committing to serious changes at CBS. I think that would be a good thing,” Carr told reporters on Thursday during a press conference following the agency’s Open Commission meeting. “They’ve committed to addressing bias issues. They committed to embracing fact-based journalism. They’ve also committed to either not extending or removing invidious forms of DEI discrimination. I think those are all significant that they’ve offered. And so we’ll take a look at that. We’re gonna weigh it in our proceedings.”
In a pair of letters on Wednesday, Skydance said it would put an ombudsman in place for at least two years that would report to New Paramount’s president Jeff Shell and work together to carefully review “any complaints of bias or other concerns” involving CBS News. It also said it would eliminate all diversity, equity and inclusion (DEI) initiatives at Paramount.
New Paramount will also work closely with CBS’ affiliated broadcast stations to ensure a “productive partnership,” including by considering technological improvements, investments in local news resources and other measures to bolster local broadcasting.
“Skydance believes that its acquisition of Paramount will generate significant efficiencies and have a substantial positive impact on the future of broadcasting,” the letter concluded. “We submit that these voluntary commitments should provide comfort that New Paramount will operate CBS Network in a manner consistent with the public interest.”
The FCC has been reviewing the Skydance deal for 251 days due to the required transfer of broadcast licenses. Though it typically makes decisions within an informal 180-day timeframe, that is not a strict deadline. Carr did not provide an update on when the agency would make a decision on the merger or if the full commission would weigh in.
Anna Gomez, the FCC’s sole Democrat, blasted Skydance, arguing it agreed to “cowardly capitulate to adopt never before seen controls over newsroom decisions and editorial content” in “direct violation” of the First Amendment. She also said it’s complying with the agency’s “ideological demands that undermine efforts to combat discrimination and expand equal opportunity.”
“Turns out, it is quite easy to sell out your principles for pure profit,” she said.
Gomez added that the public “has a right to know how the government’s First Amendment violations drove Paramount capitulation” and reiterated her previous call to bring the merger review to a vote by the full commission.
“We should be clear whether this commission stands on the side of the First Amendment and freedom of expression or in support of this administration’s campaign of censorship and control,” she concluded.
In addition to the letters, Skydance and Paramount held meetings with Carr, members of Gomez’s staff and FCC commissioner Olivia Trusty and her staff to tout the benefits of the merger.
After triggering its second automatic 90-day extension, the Paramount-Skydance deal’s closing deadline has been pushed to Oct. 6. If the merger is not closed by then, the parties would have the option to terminate the deal, which would not be subject to the agreement’s $400 million breakup fee.
