Hollywood mergers are usually boring. They involve a lot of guys in expensive suits arguing over EBITDA and "synergies" that never actually happen. But the Paramount Skydance Trump CBS saga? That was something else entirely. It was basically a corporate thriller where the stakes weren't just box office returns, but the future of news and the First Amendment itself.
Honestly, if you've been following the news lately, you know things in the media world are getting weird. In July 2025, a massive $8 billion deal finally crossed the finish line, turning Paramount Global into "Paramount, a Skydance Corporation." But the path to that signature was paved with a $16 million settlement, a high-stakes lawsuit from Donald Trump, and the resignation of some of the biggest names at CBS News.
The $16 Million "Handshake" That Saved the Deal
Let’s be real: Paramount was in a corner. Shari Redstone, who controlled the company through National Amusements, needed a way out. The stock was struggling, and the Skydance deal—led by David Ellison, the son of Oracle billionaire Larry Ellison—was her best bet. But there was a giant orange obstacle in the way.
Donald Trump had sued CBS for $20 billion (yeah, billion with a B). He claimed 60 Minutes deceptively edited an interview with Kamala Harris back in 2024 to make her look better. CBS denied it, obviously. Most legal experts thought the case was a joke and would be tossed out of court. But then something happened.
The FCC, now led by Trump loyalists like Brendan Carr, started looking at the Paramount-Skydance merger. Suddenly, that "meritless" lawsuit became a massive liability. If Paramount didn't make Trump happy, would the FCC block the deal?
In July 2025, Paramount blinked. They agreed to pay $16 million to settle the lawsuit. The money didn't go into Trump's pocket directly—it went to his presidential library—but the message was clear. Within days of the settlement, the FCC greenlit the merger.
Why the CBS Newsroom Went Into Meltdown
You can imagine how this went over at CBS. To the veterans at 60 Minutes, this felt like a betrayal. They pride themselves on being the gold standard of journalism, and here was their parent company basically paying "protection money" to get a business deal through.
The fallout was immediate and brutal:
- Bill Owens, the executive producer of 60 Minutes, walked away in April 2025.
- Wendy McMahon, the president of CBS News, followed him out the door.
- Correspondents like Lesley Stahl and Scott Pelley signed letters calling the settlement a "shameful stain."
It wasn't just about the money. As part of the merger approval, Skydance reportedly agreed to install a "bias monitor" or ombudsman to oversee CBS News. They also told the FCC they would eliminate DEI (Diversity, Equity, and Inclusion) programs. For a legacy news organization, this was a total culture shift.
The David Ellison Era and the Warner Bros. Hostile Takeover
Now that David Ellison is in the big chair, things aren't slowing down. As of January 2026, the newly formed Paramount Skydance Trump CBS entity is already looking for its next meal. They’ve launched a hostile $30-per-share all-cash bid for Warner Bros. Discovery (WBD).
It's a mess. WBD is trying to merge with Netflix, but Ellison is playing hardball. He's even nominating his own slate of directors to the WBD board to force the deal through. If he pulls this off, he won't just own Star Trek and Mission: Impossible—il he’ll have Batman, Harry Potter, and CNN under the same roof.
Trump’s take on all this? It’s complicated. He’s praised David Ellison in the past, calling him a "fantastic man" who would do a great job. But he’s also attacked the new Paramount on Truth Social, claiming 60 Minutes has actually gotten "WORSE" since the takeover. He seems to be playing both sides, keeping the pressure on while his allies at the FCC keep a close watch on the "bias" at CBS.
What Most People Get Wrong About the Merger
There’s a common misconception that this was just a standard buyout. It wasn't. This was a "three-way merger" involving National Amusements, Skydance, and Paramount Global.
Most people also assume the $16 million settlement was an admission of guilt. It wasn't—at least not legally. Paramount didn't apologize. They just paid to make the problem go away so they could clear the $8 billion hurdle. But in the world of public perception, the damage was done. It set a precedent that if you're powerful enough and you sue a news organization, the corporate owners might just write a check to keep their other business interests moving.
What Happens Next?
If you're a consumer or an investor, here’s the bottom line. The media landscape is consolidating faster than ever. We’re moving toward a world where three or four massive "super-groups" own everything you watch.
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- Watch the WBD Vote: The battle between Paramount-Skydance and Netflix for Warner Bros. Discovery will be decided in the first half of 2026. This will determine if we get a "Mega-Paramount."
- Monitor the CBS "Monitor": Keep an eye on who is appointed as the CBS News ombudsman. Their influence on editorial decisions will tell us if the network is truly shifting its political tone.
- Streaming Prices: With Ellison's focus on "tech-enabled innovation" and cutting $2 billion in costs, expect Paramount+ to change. Likely more bundles, more ads, and higher prices for the "premium" experience.
The Paramount Skydance Trump CBS story is a reminder that in 2026, business and politics aren't just related—they're the same thing. Whether that’s a good thing for the "most-watched broadcast network" is still up for debate.
If you want to stay ahead, keep a close watch on the FCC filings this spring. That’s where the real rules for the next decade of media are being written right now.