The news: Skydance Media’s $8 billion Paramount acquisition has been approved by the FCC, capping months of stalled negotiations and political controversy.

• The deal, which includes Paramount Pictures, CBS, and Nickelodeon, was approved in a 2-1 vote.
• Skydance committed to taking steps to broaden viewpoint representation in its news coverage, with the FCC noting that Skydance pledged to provide diverse viewpoints from across the political spectrum.
• Still, FCC chairman Brendan Carr framed the acquisition as an opportunity to reshape legacy news networks, including a move away from what he called “invidious forms” of diversity, equity, and inclusion.

Will the deal affect trust in news? This deal comes as trust in news is declining, with 42% of US adults saying their trust in news media had declined in 2024, and only 15% saying it had improved. And a separate survey found that Americans’ trust in media news is at an all-time low—a sentiment echoed by a recent Gallup poll, where only 31% stated they trusted mainstream news “a great deal” or “fair amount.”

US adults are more likely to trust the news if outlets clearly separate news and opinion content, emphasize fact-checking and correction policies, and strive to give a balanced perspective on issues.

Still, some worry the deal’s optics could undermine public confidence. FCC commissioner Anna Gomez, the sole member to cast an opposing vote, expressed concerns the move would “further erode press freedom.”

What about advertising? The deal brings risks and opportunities—but for advertisers, the long-term upside may be substantial.

• Paramount owns a deep portfolio of valuable assets, from CBS to Paramount+ and iconic film franchises, and maintains a strong position in broadcast news. Under previous leadership, many of these assets were seen as underleveraged or poorly managed, limiting their potential to be high-performing ad platforms.
• Skydance brings a more franchise-focused and agile approach, co-producing content like Mission: Impossible with Paramount—and its emphasis on tentpole storytelling could make Paramount’s content portfolio more globally competitive and attractive for advertisers. The move could also help slow the erosion of broadcast news, one of the last strongholds of linear TV.

Our take: While the Paramount-Skydance merger could raise questions around editorial perception and brand safety, it offers a rare opportunity to reset a legacy media giant and reposition it for mass reach.

A stronger financial foundation supported by a sound content strategy could position Paramount as a more dependable, brand-safe platform for advertisers looking to reach large audiences across both linear and streaming.