Paramount Merger on the Brink: Shocking Concessions Revealed

The Trump Administration’s Grip on the FCC

When Donald J. Trump sued CBS for $10 billion days before the 2024 election, accusing the company of deceptively editing a “60 Minutes” interview with Vice President Kamala Harris, many legal experts dismissed the litigation as a far-fetched attempt to punish an out-of-favor news outlet. Now Mr. Trump is back in the White House, and many executives at CBS’s parent company, Paramount, believe that settling the lawsuit would increase the odds that the Trump administration does not block or delay their planned multibillion-dollar merger with another company, according to several people with knowledge of the matter.

Settlement discussions between representatives of Paramount and Mr. Trump are now underway, according to three people with knowledge of the talks. There is no assurance, though, that they will result in a deal, and it is unclear what the terms of any such deal might include. Shari Redstone, Paramount’s controlling shareholder, strongly supports the effort to settle, according to two people with knowledge of her thinking. Ms. Redstone stands to clear billions of dollars on the sale of Paramount, the media empire founded by her father Sumner Redstone, in a deal with Skydance, an entertainment company backed by the billionaire Larry Ellison and run by his son David.

Trump’s Lawsuit Against CBS: A Strategic Move?

The $10 billion lawsuit: a far-fetched attempt to punish an out-of-favor news outlet? Settlement discussions between Paramount and Trump: what’s at stake?

The Chairman’s Coercive Technique

Using FCC powers to micromanage corporate decisions without commission votes and judicial review. Targeting media company editorial decisions and diversity initiatives.

Regulation by Coercion: The FCC’s New Approach

The FCC’s Shift from Deregulation to Micromanagement

Chairman Carr’s contradictory actions: promising deregulation, delivering micromanagement. The implications of increased regulatory reach on corporate decisions.

Unilateral Actions: The Chairman’s Power Play

Using staff and commission powers to unilaterally order investigations and enforcement.

The chairman of the Federal Communications Commission (FCC) has cagily created a new and coercive technique for operating outside the agency’s established statutes and procedures to attack corporate decisions he and Donald Trump do not like. That technique is to use its powers—or the threat thereof—to micromanage the activities of companies without needing to follow the niceties of commission votes and judicial review. Prime targets are media company editorial decisions and open opportunity—or diversity, equity, and inclusion (DEI)—initiatives.

Promising deregulation, delivering micromanagement The Project 2025 chapter on the FCC, written by its new chairman, Brendan Carr, concludes, “The Commission should focus its efforts on creating a market-friendly regulatory environment that fosters innovation and competition.” In a flurry of early activity, Chairman Carr has chosen instead to achieve political goals by increasing the regulatory reach of the agency to intrude into corporate decisions to achieve political goals.

These actions include: FCC intrusion into corporate values and editorial decisions is hardly “market-friendly” as promised by Project 2025. Certainly, it is not “deregulation.”

Regulation by coercive investigation The Trump FCC has created an approach to achieving its political goals without a vote by the four other members of the Commission. Absent such a formal decision, these actions are difficult to get before an appellate court. Acting through coercion rather than regulation appears to be a workaround of the limits placed on agency authority by recent Supreme Court decisions sought by conservatives.

The chairman of the FCC has immense powers. As CEO of the agency, the chairman controls the staff as well as what the other four commissioners will be allowed to vote on, including every word of every item they consider. In each of the previously cited examples—ranging from editorial decisions to corporate conduct—Chairman Carr used his substantial powers to unilaterally order the apparatus of the commission to action. While this may be possible under the agency’s procedures, the result is anything but procedural and transparent.

In this case, the chairman unilaterally reaches a conclusion and initiates enforcement, rather than tasking the agency’s investigatory authority to independently build a record and recommend a conclusion, including whether action is necessary.

The Abolition of Open Opportunity and Diversity

The End of DEI Initiatives at the FCC

The impact of President Trump’s executive orders on diversity and inclusion programs at the Federal Communications Commission (FCC) has been significant. In his first week back in office, Trump signed two executive orders aimed at eliminating what he deemed “radical and wasteful” government diversity and inclusion programs. The chairman of the FCC, Brendan Carr, quickly fell in line, announcing that the agency would end its own promotion of diversity, equity, and inclusion (DEI) initiatives.

This move has far-reaching consequences for the FCC and its employees. DEI initiatives at the FCC were instrumental in promoting egalitarian opportunity and supporting individuals with disabilities. The agency’s Advisory Committee on Diversity and Digital Empowerment, created by the previous chairman, Ajit Pai, was also abolished in the wake of this decision.

The Human Cost of Abolishing Open Opportunity

FCC staffers are now facing fears and uncertainties about their future. Many employees have dedicated their careers to promoting DEI initiatives and have seen the positive impact they can have on the agency’s work. The loss of these initiatives is a tragic blow to the FCC’s efforts to promote diversity and inclusion.

The FCC’s role in promoting egalitarian opportunity and supporting individuals with disabilities is a vital part of its mission. The agency’s efforts to promote diversity and inclusion have had a positive impact on the agency’s work and have helped to create a more inclusive and diverse workforce.

Despite the chairman’s claims that the FCC’s DEI initiatives were “radical and wasteful,” the evidence suggests that these programs were making a positive impact. The agency’s efforts to promote diversity and inclusion were instrumental in promoting egalitarian opportunity and supporting individuals with disabilities.

• The FCC’s DEI initiatives were designed to promote diversity and inclusion in the agency’s workforce and to promote egalitarian opportunity in the telecommunications industry.
• The agency’s Advisory Committee on Diversity and Digital Empowerment was instrumental in promoting DEI initiatives and promoting egalitarian opportunity.
• The loss of these initiatives will have a significant impact on the FCC’s ability to promote diversity and inclusion.

The Paramount Merger Deal: A High-Stakes Game

The Multibillion-Dollar Deal on the Line

The planned merger between Paramount and Skydance is a high-stakes deal that could have significant implications for the media industry. The merger, which is valued at over $10 billion, would create a media giant with significant influence over the entertainment industry.

The FCC has the power to block or delay the merger, which could have significant implications for the companies involved. The agency’s decision on the merger will be closely watched by investors and industry analysts.

Settling the Lawsuit: A Calculated Risk for Paramount

Paramount and its controlling shareholder, Shari Redstone, believe that settling the lawsuit would increase the odds that the Trump administration does not block or delay the merger. The lawsuit, which was filed by President Trump, accuses Paramount of deceptively editing a “60 Minutes” interview with Vice President Kamala Harris.

The settlement discussions between Paramount and Trump’s representatives are ongoing, but it is unclear what the terms of any such deal might include. Shari Redstone is strongly supportive of the effort to settle the lawsuit, according to two people with knowledge of her thinking.

Ms. Redstone stands to clear billions of dollars on the sale of Paramount, the media empire founded by her father Sumner Redstone, in a deal with Skydance, an entertainment company backed by billionaire Larry Ellison and run by his son David. The merger would create a media giant with significant influence over the entertainment industry.

• The planned merger between Paramount and Skydance is a high-stakes deal that could have significant implications for the media industry.
• The FCC has the power to block or delay the merger, which could have significant implications for the companies involved.
• Paramount and its controlling shareholder, Shari Redstone, believe that settling the lawsuit would increase the odds that the Trump administration does not block or delay the merger.