Skydance closed its $8.4 billion purchase of Paramount on Thursday, expanding the entertainment company further into Hollywood, journalism and other ventures. The deal didn’t come easy, as the two companies faced controversy for the merger and scrutiny from President Donald Trump and his administration.
Newly minted CEO of Paramount, David Ellison, wrote in a Thursday release that Paramount has moved on to a new chapter once more, this time under Skydance. He said the closed deal brought 97 years of journalism from CBS together with 15 years of entertainment from Skydance. The company is titled “Paramount, a Skydance Corporation.”
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“I am thrilled and honored to write to you as the Chairman and CEO of Paramount, a Skydance Corporation, as — together with our Board, our new executive leadership team, and our colleagues around the world — we embark on the exciting next chapter of this legendary company,” he wrote.
News entertainment site Deadline said the merger valued Paramount at $8.4 billion.
It’s unclear when Skydance started, as the company claimed Ellison founded it in 2010, but filings with the California secretary of state indicated Jesse Sisgold registered the company’s limited liability corporation status on June 14, 2004. He wrote the company’s address as 2900 Olympic Blvd in Santa Monica, the same address listed on Skydance’s website.
Skydance is known for producing content like Netflix TV’s “Grace and Frankie” and “Top Gun: Maverick” among other films and TV shows, according to the company.
The Federal Communications Commission previously approved Paramount’s sale to Skydance in July. Skydance had told the agency it would commit to fair reporting at CBS News and refrain from implementing any diversity, equity and inclusion (DEI) programs.
A new Paramount
Ellison said the plan is envisioned to invest in “high-quality storytelling and cutting-edge technology” to advance Paramount’s presence in journalism and entertainment.
“Moving forward,” he wrote, “we will work with conviction and optimism to transform Paramount into a tech-forward company that blends the creative heart of Hollywood with the innovative spirit of Silicon Valley. By harnessing cutting-edge technologies to serve great storytelling, we will unlock the company’s enormous potential.”
Paramount’s divisions will be reorganized into studios, direct-to-consumer, and TV media units, he wrote. The decision would help streamline decisions at Paramount.
He added that Paramount+ and Pluto TV will merge into one platform to pull customers into both businesses.
Ellison noted the publicity and scrutiny the deal attracted in the past two years and said that the uncertainty of the future is behind the company with the acquisition finalized.
“We have the resources, talent and strategic clarity we need to build the world’s next generation media and entertainment company,” he wrote. “And to get there, we will focus our efforts and investments on the areas with the greatest potential for growth and impact.”
Concerns about press freedom
Federal Communications Commissioner Anna M. Gomez, whom former President Joe Biden appointed, categorized the plan as a “backroom deal” that will harm the public. She criticized the agency for overstepping its powers to pressure Paramount into a settlement with President Donald Trump and reduce press freedom.
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Skydance acquired Paramount in an $8.4 billion deal, officially merging the two companies into one.
She’s the only commissioner to vote against transferring CBS’s near-30 broadcast licenses to Skydance. FCC Chairman Brendan Carr and Commissioner Olivia Trusty supported it.
“But such violations endure only when institutions choose capitulation over courage,” Gomez wrote. “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.”
Trump settlement ignited controversy
Paramount employees, government officials and others have questioned the optics of the business deal, especially after Paramount reached a $16 million settlement with Trump over his claims about CBS editing a “60 Minutes” interview with then-Vice President Kamala Harris unfairly. CBS has denied wrongdoing.
The loudest rebukes of the deal came from “Late Show” anchor Stephen Colbert and the creators of “South Park.”
Colbert called Paramount’s settlement a “big fat bribe” during a taping days before CBS notified him about “The Late Show” ending in May 2026. The TV host told viewers in an opening monologue, promising not to hold anything back in the show’s final months.
On Comedy Central, “South Park’s” season 27 premiered with an episode titled “Sermon on the Mount,” including references to Paramount and caricatures of Trump. One scene depicted Trump in bed with Satan, while another had the Jesus character lecturing townsfolk about his requirements to return as part of a “lawsuit and the agreement with Paramount.”
Jesus later warned angry parents about standing up to Trump, referencing Colbert.
“You guys saw what happened to CBS? Well, guess who owns CBS? Paramount,” the character said. “You really want to end up like Colbert? He also has the power to sue and take bribes, and he can do anything to anyone.”
Creators Trey Parker and Matt Stone signed a $1.5 billion five-year extension with Paramount for 50 episodes and streaming rights to “South Park.”
