Skydance Media and Paramount Global say the challenge filed with the FCC regarding their proposed merger “lacks merit” and “seeks relief that raises constitutional concerns,” and the companies are dismissing the challenge. A formal request was made to the department.
In particular, Skydance and Paramount are facing a petition to the FCC by the American Rights Center, a conservative public interest law firm, asking that the FCC add conditions to the transfer of CBS station licenses to new TV stations. He said “baseless claims” were being made. Integrated entity. The American Rights Center’s Dec. 16 filing disputes CBS’s alleged “track record of ideological bias and news manipulation,” stating that CBS “has engaged in clearly illegal racial quotas for hiring.” “I was,” he claimed. The group also raised concerns about the potential for “undue foreign influence from China” on the combined Skydance and Paramount, given that Chinese company Tencent Holdings has a minority stake in Skydance. did.
The American Rights Center’s petition asks the FCC to approve the Skydance-Paramount merger as a condition that “the new entity make concrete commitments to address these issues and grant approval for an appropriate period of trial period.” He asked for the condition to be “that”. Until compliance with the terms is evident. ”
“The commission must pressure New Paramount’s owners to address diversity of viewpoints based on real-world benchmarks and expectations,” the group said in its petition. From July 21st (when President Biden withdrew from the race) to September 27th, the American Rights Center reported that CBS Evening News and CBS Weekend News coverage of Vice President Kamala Harris It cited the findings of a survey by the media research center, a watchdog group. Reportedly, 84% were positive, but coverage of Donald Trump was “disproportionately negative (79%).”
Skydance and Paramount wrote in a Jan. 2 filing with the FCC (available at this link “and is categorically prohibited by the First Amendment and supreme law.” Court precedent. ”
“As a reference point, the Center’s concerns about diversity of viewpoints and allegations of bias and manipulation are clearly not unique to the deal,” Skydance and Paramount said in a statement. “The Center has complained about the lack of diversity across ABC, CBS, and NBC (and the media industry more generally), and to the extent that it focuses on CBS in particular, the Center believes that any allegations against CBS The Skydance consortium’s acquisition of Paramount has made no effort to demonstrate that it is caused by the acquisition of Paramount by the Skydance Consortium. ”
The complaint goes on to say that “the Center’s other claims regarding alleged Chinese influence and ‘racial discrimination’ have no basis in fact and are legally invalid.” As such, the American Rights Center “is not considered an interested party in this litigation,” the companies said.
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Separately, the Center for American Rights filed a consumer complaint with the FCC regarding “news distortions” by CBS News’ “60 Minutes,” alleging that the program “was not a good fit for Vice President Harris’ responses in interviews on important foreign policy topics.” “I edited it in a manipulative manner.” ” Before the 2024 election, Trump filed a $10 billion lawsuit against CBS over Harris’ “60 Minutes” interview. CBS News said Trump’s claims about Harris’ “60 Minutes” interview are false and the lawsuit is “completely without merit.”
FCC Commissioner Brendan Carr, whom President-elect Trump has nominated to be the next chairman, said Trump’s lawsuit against “60 Minutes” will likely be a factor in the FCC’s consideration of the Skydance-Paramount merger. said.
In October 2024, Skydance and Paramount filed an application with the FCC seeking approval to transfer control of the television broadcast licenses for 28 local television stations owned and operated by CBS to a new combined company. Under a more than $8 billion deal, Skydance and Redbird Capital Partners will acquire Shari Redstone’s National Amusements, Inc. (Paramount’s controlling shareholder), and then merge Paramount and Skydance. It will be. The agreement is expected to close in the first half of 2025.
In a Jan. 2 filing, Skydance and Paramount also asked the FCC to deny LiveVideo.AI’s petition to deny the CBS station licenses. LiveVideo.AI made a “superior bid on July 5, 2024” to acquire NAI and Paramount, and was accused of “anti-competitive conduct engaged in what Complainants found to be an unfair sales process.” “I suffered damage,” he claimed. In response, Skydance and Paramount responded that LiveVideo.AI’s “complaints regarding Paramount’s sale process are not admissible in this proceeding, and that vague allegations of illegal activity are unfounded and do not justify rejecting the application.” It is insufficient.”
In addition, Paramount and Skydance commented on the challenge filed by Hughes Media, stating that Hughes Media is “pluto TV, one of the leading and fastest growing free streaming platforms critical to the future of the world. “I have experienced Paramount Global’s self-serving behavior firsthand on the platform.” We are responsible for providing video programming services and believe that the proposed transaction would worsen the competitive position of Fuse and other independent programming sources. ” Hughes Media urged the FCC to “consider whether the proposed transaction as currently planned would foster the type of competition and diversity of viewpoints required by public interest standards.”
Paramount and Skydance said the FCC “does not have the authority to impose conditions sought by Hughes Media, and that such conditions relate to streaming media services, not the proposed transfer of control of CBS’ broadcast licenses.” is in any case completely unjustified.”
