Skydance and Paramount Defend $8.4 Billion Merger Against FCC Opposition

Skydance Media and Paramount Global have come forward to defend their proposed $8.4 billion merger, urging the Federal Communications Commission (FCC) to reject objections from critics. The merger, announced in July 2024, is facing opposition due to concerns raised by the Center for American Rights, a public-interest law firm, which filed a petition to block the deal. Critics, including LiveVideo.AI and Fuse Media, have raised issues about potential Chinese influence on U.S. media, stemming from an investment by Tencent Holdings in Skydance.

In a filing with the FCC, Skydance and Paramount rejected the objections, calling the petitions "unwarranted" and "meritless." They argued that the petitions failed to show any specific harm to competition, and emphasized that concerns about foreign influence were without basis. The companies dismissed allegations from LiveVideo.AI about an unfair sales process, stating that such claims fall outside the FCC’s regulatory scope.

Both companies stressed that their merger is aimed at creating a stronger media entity with the capacity to compete in a rapidly changing market, and they believe that the deal will not harm competition. The merger, which has been speculated on for months, would combine two major players in Hollywood and create a larger, more influential company in the entertainment industry.