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Paramount-Skydance Deal Stuck In Regulatory Hurdles

For the David Ellison-run Skydance Media, a “quick and clean” regulatory approval to buy Paramount Global – the owner of Australia’s Network 10 and Paramount+ – has got entangled in regulatory approvals.

Skydance had previously hoped to close the deal during the first quarter of this year. However, the incoming Federal Communication Commission chair in the US, Brendan Carr, has indicated that’s not likely to happen, reported The New York Post.

Carr reportedly won’t approve the $8 billion (A$12.99 billion) tie-up because he believes there’s evidence that Paramount’s TV-subsidiary, CBS News, does not fully adhere to FCC fairness rules that all networks must meet to air programming over the public airwaves.

“Carr has told them a quick and clean approval is not on the table and all else remains on the table including an eventual approval or a denial,” an unnamed source close to the situation has said.

Paramount (Image: Sourced from Unsplash)

 

One of the main contentions is CBS proving that it did not unfairly edit an interview that 60 Minutes did with Kamala Harris that appeared to change an answer that she had provided during the interview prior to the November presidential elections.

Another grievance that regulators have with CBS is its alleged Diversity Equity and Inclusion hiring practices. As ChannelNews has reported, major companies such as Amazon and Meta, are rolling back their DEI hiring policies which are being subjected to potential legal challenges as being discriminatory.

Broadcast networks and Hollywood studios have pushed controversial measures such as racial and gender-based quotas in hiring and promotion.

 

Earlier this month, Paramount Global and Skydance Media responded to critics of their pending merger. The merger has drawn criticism at the US Federal Communications Commission by the likes of LiveVideo.AI Corp. and the Center for American Rights and Fuse Media.

“These filings are procedurally defective, seek relief that raises constitutional concerns, and/or otherwise lack merit,” Skydance, Paramount and its controlling investor, National Amusements, said in regulatory filing. “Neither party identifies any transaction-related harm that could merit denying the applications or imposing conditions.”

The Center for American Rights has filed complaints about media bias at CBS and other networks, while LiveVideo has claimed that Paramount and National Amusements ran a rigged auction of the business.

Also, American investor Mario Gabelli whose funds own about 12% of Paramount voting shares has also gone to court claiming that Paramount has refused to turn over records that would show whether Shari Redstone’s gains, through the sale of her National Amusements improperly disadvantage Paramount’s minority shareholders.



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