Paramount-Skydance $8 Billion Merger Deadline Extended 90 Days Amid FCC Review

The proposed $8 billion merger between Paramount Global and Skydance Media has faced delays, with the closing deadline automatically extended to July 6 due to ongoing scrutiny from the Federal Communications Commission (FCC). The deal has already received approvals from the SEC and the European Commission, but the FCC's regulatory review continues to pose challenges, particularly in the context of political pressures surrounding President Trump's lawsuits against CBS News. Trump's $20 billion defamation suit alleges deceptive editing in a '60 Minutes' interview with Kamala Harris, which has influenced the FCC's review process, led by Trump appointee Brendan Carr. Carr has also indicated that mergers involving companies with diversity, equity, and inclusion (DEI) programs may face increased scrutiny, aligning with Trump's anti-DEI stance. If the merger does not close by the new deadline, a further extension could be triggered, but Paramount may face a $400 million breakup fee if the deal collapses. Investor concerns also linger regarding the fairness of the merger agreement and the potential dismissal of a competing offer from Project Rise Partners.