The recent approval from the Federal Communications Commission (FCC) has done wonders for Paramount Global’s stock price. After hours on Thursday, shares climbed: (NASDAQ:PARA) by 2.2% and (NASDAQ:PARAA) by 2.1%. This surge follows the news of Skydance’s acquisition, which ends a complicated series of events surrounding the deal.
Previously, the situation had entangled the CBS news division along with its well-known program, 60 Minutes. This saga was intertwined with a significant lawsuit instigated by former President Trump, which ended up being settled for substantial amounts.
With the FCC’s latest decision, the last barrier has been lifted as they approved a set of applications that allow for the transfer of important FCC licenses and other authorizations. This decision came after promising commitments from Skydance’s CEO David Ellison regarding ethical news practices.
Reflecting on the situation, FCC Chairman Brendan Carr expressed that the American public’s trust in established news outlets has declined. He stated, “It is time for a change,” and emphasized his support for Skydance’s dedication to revitalizing the CBS broadcast network.
Among the commitments made to gain approval, Skydance has promised to push for “fair, unbiased and fact-based” reporting within CBS. They’ll introduce an ombudsman to look into bias complaints for a minimum of two years. Interestingly, they also declared that no diversity, equity, and inclusion policies will define the new Paramount’s direction, while promising to maintain local news giving priority within the interests of the FCC.
