FCC Greenlights $8B Paramount-Skydance Merger—CBS Forced to Axe DEI Programs
Media giants collide as regulators rubber-stamp a deal that reshapes Hollywood's power structure.
The $8 billion merger—approved despite antitrust murmurs—comes with a brutal catch: CBS must dismantle its diversity initiatives overnight.
Wall Street shrugs while creative accounting works harder than the writers' room.
CBS Faces DEI Ban as Chris McCarthy Exits in $8B Skydance Deal
The Chris McCarthy resignation has become official as the Paramount co-CEO announced his departure following the FCC Paramount Skydance merger completion. McCarthy, who’s been with the company for 22 years, actually exercised change-of-control provisions rather than accept a reduced role under David Ellison’s leadership.
The CBS DEI ban represents one of the key merger conditions right now. FCC Chairman Brendan Carr stated that Skydance committed to eliminating all diversity programs at the combined company.
FCC Chairman Brendan Carr stated:
Executive Departures Shape New Structure
The Chris McCarthy resignation triggers substantial severance payments that are worth twice his annual salary along with bonuses. McCarthy actually built the Yellowstone franchise through his $200 million Taylor Sheridan deal, which is now valued at $3 billion across multiple spinoffs.
Taylor Sheridan had stated:
The FCC Paramount Skydance merger also forces out Paramount Pictures head Brian Robbins, while CBS president George Cheeks remains but in a diminished capacity.
Political Pressure Drives Merger Terms
The CBS DEI ban emerged from intense regulatory pressure following Paramount’s controversial $16 million TRUMP settlement. Democratic Commissioner Anna Gomez cast the sole dissenting vote, and she criticized the Skydance media deal approval process.
Commissioner Anna Gomez stated:
The media industry consolidation reflects broader streaming competition challenges right now. Paramount carried $14.6 billion in debt, which necessitated this transformative FCC Paramount Skydance merger for survival.
