Paramount-Skydance merger delayed 90 days in absence of FCC approval

Quick recap: The proposed merger to unite the Paramount brand with David Ellison’s Skydance has been in the works since early 2024. The estimated $8 billion deal would inject new resources into both brands and help streamline operations under a single umbrella. Approvals from the SEC and European Commission are in place, but mounting shareholder lawsuits and a charged political atmosphere cast uncertainty on the transaction. Investors are questioning whether the deal best serves their interests.

Regulatory hurdles: Initially signed in summer 2024 and slated to close in the first half of 2025, the merger has met endless obstacles. President Donald Trump’s $20 billion lawsuit over a disputed 60 Minutes interview heightened FCC scrutiny of media conduct. Simultaneously, the FCC has voiced concern over companies’ DEI policies.

Deadline pressures: The merger just passed its initial April 7 closing date without FCC approval, automatically triggering a 90-day extension to July 6. Under the merger agreement, if all non-regulatory conditions have been met but the FCC still hasn’t signed off, the clock resets for three more months. Should the deal remain unfinished by July 6, a second 90-day extension kicks in; after that, either party could abandon the merger, which would leave Paramount responsible for a $400 million breakup fee.