Is Paramount Global’s Future with Skydance Media in Limbo? Understanding the Impact of Recent Developments
Paramount Global recently settled a lawsuit initiated by former President Donald Trump against its flagship program, "60 Minutes." This raises questions about the potential clarity surrounding the company’s ongoing efforts to finalize a sale to Skydance Media. However, uncertainty still looms—an ambiguity that even Paramount executives are grappling with.
In May, Shari Redstone, the head of Paramount Global, expressed optimism that the acquisition by Skydance would close by the first half of 2025. However, with that deadline now passed, Paramount has not provided any updated timelines or expectations for the merger. Both companies have existing agreements that could extend their merger discussions until October of this year, but the lack of progress raises concerns.
Several compelling reasons exist for Paramount to pursue the merger. The traditional broadcast and cable TV landscape is experiencing significant upheaval. While waiting for Federal Communications Commission (FCC) approval on the deal and navigating a legal dispute that many experts deemed baseless—allegedly aimed at punishing CBS News for its coverage of Kamala Harris—Paramount’s operations have continued to decline. In the first quarter of this year, the company reported approximately $4.5 billion in revenue from its traditional TV operations, a decrease from $4.97 billion in the fourth quarter of 2024. The last significant revenue boost for Paramount’s TV business came during Super Bowl LVIII, which yielded a meager 1% increase compared to the previous year.
The challenges Paramount faces are indicative of a broader generational shift in the media industry, as more consumers gravitate toward streaming services that offer on-demand content. This trend is undermining the traditional cable model, and Paramount—having reduced investments in many of its cable channels—finds itself under more pressure than competitors like Disney and Comcast, and especially newer entrants like Netflix and Amazon Prime Video.
Adding to the turmoil, key executives are leaving the company. In June, Naveen Chopra, the Chief Financial Officer (CFO) of Paramount, announced his departure for a similar role at Roblox. Earlier in March, CBS revealed it would cease producing original programming during the 12:30 a.m. time slot after host Taylor Tomlinson opted to focus on her own comedy endeavors. CBS plans to fill the hour predominantly with reruns of the syndicated show "Comics Unleashed."
Concerns are also emerging from creative partners. Trey Parker and Matt Stone, the creators of the iconic "South Park" series on Comedy Central, voiced frustrations about delays affecting their show, attributing these setbacks to the ongoing merger. They described the merger process as a "shit show" that is negatively impacting "South Park," coinciding with Paramount’s announcement of a two-week delay for the series’ upcoming season.
The implications of the merger for CBS News remain unclear. The recent $16 million settlement paid to Trump has cast a shadow over "60 Minutes," a program historically regarded as a cornerstone of TV journalism that continues to attract substantial viewership. In an age where advertisers are increasingly hesitant to support news programs—citing divided audiences and politically charged headlines—this decision could have far-reaching consequences for the show’s integrity.
Looking ahead, Paramount’s future appears increasingly tied to its streaming operations. Reports indicate that Paramount+ is on track to become profitable in the U.S. by 2025. However, it’s worth noting that the streaming division currently generates less than half of the revenue produced by Paramount’s traditional TV business. As Skydance evaluates its potential merger with Paramount, it may need to closely examine these declining operations. Last year, Skydance outlined plans that included cutting at least $2 billion, primarily from linear networks.
In the interim, Paramount’s TV business continues to face challenges, and the time spent on the Trump lawsuit has yielded little benefit. It’s no surprise that Skydance is taking a cautious approach to finalize this deal. As the media landscape evolves, all eyes are on Paramount Global to see how it navigates these turbulent waters.
