Skydance Denies Involvement in Colbert Show Cancellation
Skydance has refuted claims regarding its role in the cancellation of Stephen Colbert’s late-night CBS program, asserting that it is compliant with anti-bribery laws amid suggestions from Senate Democrats pointing to possible fraud linked to Paramount Global’s acquisition.
In a letter addressed to Senator Elizabeth Warren, Skydance’s legal counsel, Stephanie Kyoko McKinnon, stated, “Throughout its history and in reviewing Paramount’s proposed acquisition, Skydance is fully compliant with all applicable laws, including our country’s anti-bribery laws.” This follows earlier reports from various news sources.
McKinnon clarified that Skydance was not part of the decision to cancel “The Late Show with Stephen Colbert,” mentioning that the announcement dated July 17 was in progress before Colbert informed the parent company, Paramount, that week after resolving CBS News and President Donald Trump’s lawsuit concerning “60 Minutes.”
FCC Approves Paramount-Skydance Merger
McKinnon also highlighted that Paramount had notified Skydance regarding the show’s cancellation. The show is expected to continue airing until May, after Paramount made an independent choice on the matter.
She indicated that Skydance was neither involved in the lawsuit nor the settlement related to the Paramount case. Furthermore, Paramount obtained Skydance’s approval related to a settlement term for preparing a public transcript of interviews with prospective White House candidates.
Senator Warren had earlier cautioned that “it is illegal to fraudulently impose something valuable on federal employees to influence government actions,” warning that any quid pro quo arrangement that might influence the administration’s view on the merger could result in legal violations.
In earlier reports, Paramount was accused of making substantial payments, described as “big, fat bribes,” through the $16 million settlement before Colbert’s approval of the Skydance merger. It was suggested that a significant budget would be directed toward advertising aligned with conservative causes after the transition to new ownership.
Changing Landscape of CBS Broadcasting
Recently, FCC Chairman Brendan Kerr announced approval for the Paramount-Skydance merger, acknowledging Skydance’s commitments. He remarked, “Americans no longer trust legacy national news media to report completely, accurately, and fairly. It’s a time of change.” Kerr noted that Skydance has made a written commitment to ensure diverse perspectives across the political spectrum, including measures to reduce biases that erode public trust.
The merger is anticipated to finalize on August 7th.
The new Paramount-Skydance Corporation will be overseen by CEO David Ellison and former NBCUniversal CEO Jeff Shell. Shari Redstone, the controlling shareholder of Paramount, who held the majority of voting shares, is set to depart from the company.
Prior to the merger’s official announcement, Paramount and CBS reached a settlement regarding Trump’s lawsuit over alleged election interference.
Redstone, who distanced herself from involvement in the lawsuit debates earlier this year, seemed eager to settle to avert complications with the Trump administration, especially with its influence on the merger.
Meanwhile, the backlash against Paramount continued after the announcement of “The Late Show with Stephen Colbert” cancellation, which CBS attributed to financial factors. Critics, including various Democrats, suggested that the decision was politically motivated in light of the impending merger.
Nonetheless, Colbert’s show reportedly lost $40 million annually while operating on a hefty budget of around $100 million per season. Paramount has faced heavy criticism regarding various programming decisions, affecting its other shows like “The Daily Show” and “South Park.”
