FCC approves Skydance's $8 billion Paramount acquisition
"Americans no longer trust the legacy national news media to report fully, accurately, and fairly. It is time for a change...These commitments, if implemented, would enable CBS to operate in the public interest and focus on fair, unbiased, and fact-based coverage. Doing so would begin the process of earning back Americans' trust. Today's decision also marks another step forward in the FCC's efforts to eliminate invidious forms of DEI discrimination," part of Carr's statement reads.
FCC Commissioner Anna M. Gomez, however, issued a statement saying she cannot support the deal "in light of the payout and other troubling concessions Paramount made to settle a baseless lawsuit." In early July, Paramount agreed to pay $16 million to settle the lawsuit Donald Trump filed over a CBS interview with Kamala Harris during the 2020 presidential campaign. His lawyers accused the network of editing her answers to "confuse, deceive and mislead the public."
Legal experts said at the time that Paramount may have settled to ensure that there are no obstacles for the merger's approval. When news about the acquisition first came out, the company said that it plans to rebuild its streaming technology while reducing costs under its new CEO David Ellison. Paramount, after all, invested billions into its streaming service Paramount+, and it had yet to turn a profit. The company said that it was allocating the $16 million to Trump's future presidential library and not paying him "directly or indirectly."
"In an unprecedented move, this once-independent FCC used its vast power to pressure Paramount to broker a private legal settlement and further erode press freedom," Gomez said in her statement. "Once again, the agency is undermining legitimate efforts to combat discrimination and expand opportunity by overstepping its authority and intervening in employment matters reserved for other government entities with proper jurisdiction on these issues. Even more alarming, it is now imposing never-before-seen controls over newsroom decisions and editorial judgment, in direct violation of the First Amendment and the law."
She added: "The Paramount payout and this reckless approval have emboldened those who believe the government can — and should — abuse its power to extract financial and ideological concessions, demand favored treatment, and secure positive media coverage. It is a dark chapter in a long and growing record of abuse that threatens press freedom in this country. But such violations endure only when institutions choose capitulation over courage. It is time for companies, journalists, and citizens alike to stand up and speak out, because unchecked and unquestioned power has no rightful place in America."
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