Paramount, Skydance Begin Second 90-Day Merger Extension

A second 90-day extension on Paramount Global’s proposed sale to David Ellison’s Skydance has automatically begun, as specified in the deal agreement. This extension provides additional time for the parties involved and the Federal Communications Commission (FCC) to complete the necessary processes. Approval by the Commission, led by Brendan Carr, is required to transfer CBS broadcast licenses to Skydance.

Any ongoing discussions will take place following a $16 million settlement announced last week between CBS and Donald Trump.

The current status of any conversations between the FCC and Skydance is not publicly known. The new window to finalize the deal extends through early October. Paramount and Skydance announced their merger agreement after approximately six months of negotiations, on July 7, 2024.

The President filed a lawsuit against the network and 60 Minutes for $20 billion last fall, alleging that the newsmagazine edited its presentation of an interview with Kamala Harris. The allegations, initially filed in Amarillo, Texas, changed focus after the presidential election to a commercial argument. CBS has denied all allegations, and the case was not considered strong.

Paramount’s controlling shareholder, Shari Redstone, was reported to be interested in resolving the lawsuit and proceeding with the sale of her family’s controlling stake in Paramount. Some politicians and interest groups had indicated they might pursue legal action against Redstone if Paramount agreed to a settlement.

The settlement includes a donation for Trump’s presidential library and covers his legal expenses. It does not include an expression of regret or apology.

Paramount co-CEO George Cheeks informed shareholders that settlements are sometimes used to avoid unpredictable legal costs, the risk of an adverse judgment, and potential disruption to business operations.

The settlement with Trump "offers a negotiated resolution that allows companies to focus on their core objectives rather than being mired in uncertainty and distraction," he said at Paramount’s virtual annual meeting last Wednesday.

While the lawsuit involved Paramount/CBS, any ongoing merger discussions at the FCC level would now primarily involve David Ellison and Skydance, which would become the owner of the broadcast licenses if the deal is completed.

In December, Disney/ABC News settled a defamation suit by Trump for $15 million. The settlement included a contribution to his library, legal costs, and an expression of regret over anchor George Stephanopoulos’ inaccurate on-air statement regarding the president-elect and the civil liability verdict in the case involving writer E. Jean Carroll. Trump was found liable for sexually abusing and defaming Carroll.