Paramount Global's $8 billion merger with Skydance Media faces U.S. regulatory approval amid controversy over “60 Minutes'' interview with Kamala Harris to opposition from Teamsters union It faces new hurdles, sources told the Post.
Officials say the outlook for the mega-deal has become increasingly uncertain since Donald Trump won the presidential election. Part of the reason is that the president-elect has filed a $10 billion lawsuit accusing Paramount's CBS network of engaging in “malicious, deceptive and gross news distortions of voter interference.”
The issue concerns the controversial “60 Minutes'' interview with Kamala Harris. Trump claims the interview was edited to eliminate the vice president's clunky, meandering language and to boost her image at a critical time before Election Day.
“I think the Trump part is a real issue,” said a person close to Paramount, speaking on condition of anonymity.
One possible scenario, the source said, is that Paramount, which is owned by media heiress Shari Redstone, has decided to make a deal about the “60 Minutes” interview to satisfy President Trump and FCC Commissioner Brendan Carr. This means that they will be forced to conduct an internal investigation. his government.
“We believe that allegations of news distortion surrounding the 60 Minutes recording are likely to arise in the context of the FCC's review of the transaction,” Carr said in an interview last month.
It is too early to know whether requirements for merger approval will also include submitting live transcripts of interviews, the people said.
People familiar with the matter said Skydance hired Makan Delrahim, who served as the Justice Department's antitrust chief under the first Trump administration and is currently at the white-shoe law firm Latham, to approve the deal with regulators. and Watkins partner).
The Justice Department cleared the merger, but the FCC set a new schedule for public comment on Nov. 15, changing the schedule from Nov. 1, originally scheduled for Sept. 6, to a deadline of Nov. 1, according to public filings. It has been extended until January.
At the time, the FCC cited an earlier filing that incorrectly stated that tech billionaire Larry Ellison would have voting control at Paramount instead of his son, David Ellison, CEO of Skydance. But insiders believed this was just a ploy to slow the process.
The Trump administration's FCC may delay approval of the deal until late next year, when the merger is scheduled to close, according to people familiar with the matter.
In another twist, the International Teamsters have emerged, with trade insiders worried that powerful union president Sean O'Brien is exerting influence over the next president. said the people involved.
Mr. O'Brien broke with Teamsters tradition in his speech at the Republican National Convention. The union leader, who has also been seen at Mar-a-Lago, encouraged Trump to select controversial Oregon congresswoman Lori Chavez Dereme to lead the U.S. Department of Labor, according to people familiar with the matter.
In an Oct. 7 filing with the FCC, the Teamsters laid out a $2 billion cost-cutting plan in the Skydance presentation, with half of that planned for the first year, and at the top: “This suggests immediate layoffs following the closure.” The company will reduce its workforce by 15% this year, according to the filing.
Reports surfaced this week that David Ellison is planning a radical shake-up in his merger with Paramount. According to Bloomberg, Ellison is reportedly considering combining all of Paramount's television assets, including CBS and MTV, into one division.
According to Bloomberg, David Ellison has met with Paramount employees and told them that no decisions have been made yet regarding layoffs.
Skydance's “promises of 'synergy' and Paramount's recent layoffs tend to undermine labor-related commitments,” the Teamsters said. As claimed in regulatory filings.
“The Teamsters could work with the FCC,” Mario Gabelli, whose company received the second-highest votes at Paramount, told the Post. “Yes, we acknowledge that the FCC may find an excuse not to approve the transaction.”
The Teamsters claim the layoffs will negatively impact local news coverage on Paramount's 14 local CBS television stations, including WCBS in New York. Similar concerns from the Teamsters helped the FCC block hedge fund Standard General's attempt to buy local TV station operator Tegna last year, the people said.
It's worth noting that the Teamsters have not yet objected to the deal, but have expressed concerns, according to officials. Mr. O'Brien is seeking written commitments from Skydance regarding staffing levels, which Skydance has not provided, the people said.
Attorney David Goodfriend, who advised the Teamsters on their opposition to the Tegna contract, is currently advising the Teamsters in negotiations with Skydance and the FCC.
A person close to Paramount noted that Skydance added $1.5 billion to Paramount's highly leveraged balance sheet as part of the merger. It will bring certainty.”
One possible way to satisfy the FCC would be to spin off or sell Paramount's owned and operated television stations, which Gabelli said could be worth more than $6 billion.
“I don't think Mr. Ellison is going to walk away easily,” Gabelli said.
Skydance declined to comment. Paramount and the Teamsters did not return calls.
If regulators block the merger, Paramount has other options.
Currently, a group of suitors from a consortium called Project Rise Partners, which announced interest in acquiring Paramount on August 15, is negotiating with new potential investment partners, again offering the opportunity to make an all-cash offer. Officials said they are looking for it.
Project Rise intends to rebuild the MTV, BET and Paramount television networks and stations, the people said.
If Paramount ultimately receives another offer, it would have to pay Skydance $400 million, according to public documents.
