According to a court hearing this week, Paramount Global and Skydance Media are rushing to complete their $8 billion merger before the end of this month.
Both firms are hopeful that the deal will close on March 20. Securing regulatory permission from the Federal Communications Commission (FCC) is crucial for the high-stakes merger, which would combine Skydance’s production expertise behind blockbusters like Mission: Impossible with Paramount’s legendary assets, including CBS, MTV, and a massive film archive. The parties do, however, have the option to extend the deadline again by 90 days if necessary, which could delay the close into late 2025 while the FCC investigation is still underway.
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The merger, which was announced in July of last year, has been a major focus for Hollywood and is expected to change Paramount’s course in the face of a difficult media environment that includes cord-cutting and a $6 billion writedown of its cable division in 2024. Supported by the Ellison family and RedBird Capital, Skydance contributes new funding and a history of successful blockbusters, such as Top Gun: Maverick. The agreement, which is worth $2.4 billion for Skydance to acquire National Amusements, Paramount’s largest shareholder, and an additional $5.6 billion for debt and equity restructuring, is intended to support Paramount’s content pipeline and streaming goals. In accordance with CEO Bob Bakish’s earlier forecast of a first-half 2025 completion, a Paramount insider stated, “We’re committed to getting this across the finish line in March.”
The crucial obstacle is still the FCC’s examination, which is currently on day 112 of its 180-day “shot clock.” Because of the size of the purchase and public interest concerns, the commission is closely examining the transfer of broadcast licenses associated with CBS stations. The parties have negotiated two 90-day cushions in their agreement, which give them till September 18 if clearances are delayed, but the deadline isn’t legally binding—extensions or pauses are typical. According to a Skydance source, “We’re hopeful the FCC moves swiftly, but we’re prepared to adapt,” indicating cautious optimism tempering by regulatory reality.
New York City pension funds filed a lawsuit to compel Paramount to take into account a competing proposal of more than $5 billion from Project Rise Partners, but the move to close this month still stands. Adding pressure to the deadline, a Delaware judge expedited the complaint on Thursday but declined to stop the merger. Nevertheless, both businesses are still committed, with David Ellison of Skydance apparently meeting with Paramount executives every day to finalize integration strategies.
In order to start their joint future, which will merge historic media with contemporary storytelling as the spring season heats up, Paramount and Skydance are counting on a speedy conclusion.
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