The Federal Communications Fee could not approve the $8 billion merger between unbiased studio Skydance and Shari Redstone’s Paramount World till presumably the second half of the yr, On The Cash has realized.
The fee gave a sign of the longer-than-expected timetable final week throughout a gathering with officers from the Heart for American Rights, the conservative group that filed a criticism claiming the decaying media firm’s left-leaning CBS Information subsidiary violated the company’s “public interest” guidelines, in line with folks on the sit-down.
The upshot of the assembly, the sources mentioned, is that the FCC’s inquiry may grind on for months to find out what forms of so-called treatments may be vital to achieve the company’s blessing earlier than it indicators off on the deal.
“The commission indicated to us that they are in no rush to push this through and will fully investigate our claims,” Daniel Suhr, president of the Heart for American Rights (CAR), advised On The Cash.
Final month, the FCC launched its inquiry into alleged misleading enhancing of the controversial Kamala Harris “60 Minutes” interview — a probe that would throttle the Paramount-Skydance deal.
Company officers have since been reviewing filings made by CAR and CBS Information, and speaking to folks on each side.
On The Cash has additionally realized that the community has lately begun hiring exterior legal professionals in preparation for a protracted authorized slog by way of the FCC deal-approval paperwork, one other indication that the FCC edict may come later moderately than sooner:
Whereas it’s unclear precisely the place the FCC is leaning on the case, throughout final week’s assembly, company officers mentioned with CAR attainable treatments that would result in approval of the deal, folks on the assembly say.
These treatments embody forcing CBS to maneuver operations out of the infamous progressive hubs of Los Angeles and New York – a troublesome ask contemplating these are the nation’s media facilities. One other treatment would be to demand that the media firm begin looking for political variety by recruiting from conservative universities comparable to Hillsdale Faculty.
If CBS agrees to them, the FCC may greenlight the deal sooner, the individuals who had been current advised On The Cash.
Reps for the FCC, Paramount and Skydance declined remark.
As beforehand reported, the FCC has set a late Match date for public feedback on the matter. Now, barring some settlement between the events, it seems to be Shari Redstone could have to chill her excessive heels for lots longer earlier than strolling away along with her enormous payday from the sale of her once-powerful media empire.
The FCC deal snafu is one thing that neither Paramount nor Skydance noticed coming after on-again, off-gain merger talks that lasted months earlier than the daughter of legendary media mogul Sumner Redstone lastly agreed final yr to promote the sputtering conglomerate created by her dad.
Her resolution got here as cord-cutting and structural modifications within the enterprise started to eat into revenue margins — and the household’s as soon as monumental wealth. Redstone is slated to rake in almost $2 billion as soon as the deal is consummated.
Skydance is run by David Ellison, whose firm produced hits comparable to “Top Gun: Maverick,” and his plan is to restructure Paramount’s programming and operations, which embody a film studio and types comparable to CBS. And he has the cash to make it work. His dad is Oracle founder Larry Ellison, one of many world’s richest males.
Larry Ellison can be a detailed good friend of President Trump, however that hasn’t discouraged The Donald’s new FCC chair, Brendan Carr, from delaying the transaction over issues that CBS Information’ left-wing bias violates FCC public curiosity guidelines. Along with pushing any approval into the second half of 2025, Carr’s inquiry will add important authorized prices to the deal, in line with folks in authorities and Wall Avenue with first-hand data of the deliberations. Carr, On The Cash has realized, might also demand that CBS cut back on DEI insurance policies, which some say are unlawful after a latest SCOTUS ruling.
FCC, Large Media’s prime regulator, is likely one of the authorities entities charged with green-lighting mergers. Amongst its issues in regulating airwaves utilized by broadcasters like CBS is that they comply with public curiosity guidelines and chorus from distorting the information. FCC oversight doesn’t prolong to cable broadcasters.
Final yr, CAR filed two complaints with the FCC that sparked a wide-ranging investigation into the costs that CBS Information’ “60 Minutes” edited an Oct. 7 interview with Harris, then the Democratic presidential candidate, to make her look higher in the course of the peak of the 2024 marketing campaign.
CBS Information has come beneath hearth from conservatives for years over allegedly left-wing bias in programming. Most lately, it took warmth when one in every of its anchors, Margaret Brennan of “Face The Nation,” sparred with Secretary of State Marco Rubio over feedback made by Vice President JD Vance on the Munich Safety Convention. Vance criticized Germany’s present progressive authorities for censoring free speech of conservatives and Brennan advised that free speech was a explanation for the Holocaust.
However CBS’s (and by extension Skydance-Paramount’s) extra urgent downside with the FCC stems from the “60 Minutes” interview, the place Harris appeared unusually coherent in answering coverage questions.. She is known for her word-salad solutions. In truth, CBS beforehand aired a promo of the Harris interview the place her reply to a query concerning the Center East appeared markedly much less coherent than what finally aired.
President Trump, then the GOP presidential candidate, has additionally filed a lawsuit, alleging “60 Minutes” tried to improperly help the Harris marketing campaign. Trump demanded the discharge of a full transcript on prime of financial damages.
In early February, and beneath stress from the FCC, Trump obtained half of what he needed: CBS launched the complete, unedited transcript and video of the Harris sit-down with correspondent Invoice Whitaker. CBS, which has denied it deceptively edited the piece, is alleged to be in early-stage negotiations to settle the $20 billion lawsuit.
Public response to the transcript largely broke down alongside ideological traces, although there was little doubt that “60 Minutes” did certainly edit Harris’ solutions, a minimum of to satisfy time restraints. Trump lately mentioned the complete transcript demonstrates that CBS was taking part in soiled with selective enhancing and “defrauded the public,” and that the information journal “should be immediately terminated.”
A supply near the FCC chair tells On The Cash that Carr “is in no rush to approve this thing because he believes CBS is relentlessly biased in its programming and it goes beyond the ’60 Minutes’ interview.”
Carr didn’t return a request for remark.
