The much-anticipated $8 billion merger between Skydance Media and Paramount Global has officially entered a 90-day extension period, a move built into the original agreement signed last summer.
While procedural in nature, the delay highlights mounting uncertainty as the companies await full regulatory clearance—particularly from the Federal Communications Commission (FCC).
President Donald Trump speaks at CPAC in 2017 – YouTube, The New York Times
Although both the SEC and the European Commission have already given their blessing to the deal, the FCC’s review process remains ongoing. According to a February SEC filing, the agreement allows for two automatic 90-day extensions if all closing conditions—except for regulatory approvals—have been satisfied or waived.
With the first of those now in effect, industry insiders are closely watching how the situation unfolds in Washington.
Donald Trump sits down at an interview with Sean Hannity – YouTube, Fox News
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One key complication is an ongoing $20 billion lawsuit filed by President Donald Trump against CBS News, a Paramount subsidiary. The lawsuit stems from a 60 Minutes interview with then-Vice President Kamala Harris, which Trump alleges was deceptively edited to mislead viewers during the 2024 election cycle.
The President claims that the altered segment disadvantaged his campaign and amounted to election interference. His legal team argues the editorial choices were intentional and designed to protect his political opponents.
Patrick Stewart as Jean Luc Picard in Star Trek: First Contact (1996), Paramount Pictures
At the same time, a conservative watchdog group known as the Center for American Rights has filed a complaint with the FCC, accusing CBS News of “news distortion”—a serious charge that could impact CBS’s broadcasting credentials.
In response, the FCC launched a formal inquiry and requested unedited footage and materials related to the Harris interview. CBS complied and released the content, maintaining that the edits were standard for clarity and timing.
A screenshot from Sonic the Hedgehog – Paramount Plus
The legal and regulatory issues facing CBS News stem from a broader and long-running tension between the network and President Trump. During his first term, Trump frequently called out CBS and 60 Minutes for what he viewed as biased reporting. This particular interview has reignited those tensions and could have wider implications—not only for the future of CBS News, but also for the corporate structure of Paramount itself.
While the merger is not blocked, the road ahead has become more complex. Industry observers note that resolving these legal and regulatory matters could help accelerate FCC approval. Meanwhile, the parties involved have agreed to mediation regarding the lawsuit—a move that may signal a willingness to resolve the dispute without further courtroom drama.
Sylvester Stallone as Dwight ‘The General’ Manfredi in Tulsa King (2022), Paramount Plus
For now, the Skydance-Paramount merger remains in a holding pattern. With the automatic extension in place, the companies—and the public—will be watching closely to see how both the FCC’s review and President Trump’s lawsuit impact the timeline.
Stay tuned. This developing story has major implications for Hollywood, Washington, and the future of corporate media in America.
Do you think the Paramount-Skydance merger will go through? Sound off in the comments and let us know!
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“New?” The lawsuit was filed almost two months ago. The only “new” thing about is that Shari Redstone has finally agreed to mediation. Even the FCC investigation was announced weeks ago and Carr himself said it could take upwards of six months.
At this point I no longer believe the merger is going to happen. The delays alone are getting to the point that Paramount may not be able to float their $5 billion debt long enough for it to happen. Then there’s whatever happens with the lawsuit, CBS potentially losing its news credentials, and Skydance’s own lawsuit against a rival over a buyout offer they claim the rival can’t even afford. There are so many things working against this deal.