Paramount-Skydance Merger: DEI, Trump Payments, and Ellison's Influence

Impact on CBS News & DEI

• ⚠️ The Paramount-Skydance merger, valued at $8 billion, has raised alarms among CBS News employees due to the planned discontinuation of Diversity, Equity, and Inclusion (DEI) initiatives.
• 💡 An ombudsman role will be established to investigate complaints about CBS News reporting, reporting directly to Skydance CEO David Ellison, raising concerns about editorial independence.
• 📌 Skydance's general counsel confirmed the elimination of DEI initiatives and a shift to hiring based on merit and a broader talent pool, moving away from race or gender-based benchmarks.
• 💬 CBS News has a history of DEI commitments, including policies requiring BIPOC representation in reality programming and writers' rooms, and a mentoring program that excluded white men.

Trump Payments & Legal Scrutiny

• ⚖️ Constitutional lawyers are urging California and New York prosecutors to investigate payments made to Donald Trump by Paramount Global and Skydance Media.
• 💰 Paramount settled a lawsuit with Trump for $16 million, which critics argue was designed to suppress free speech and extort benefits rather than resolve a baseless case.
• 🚨 Reports suggest Skydance also promised $20 million for advertising benefiting Trump after FCC approval, a side deal not disclosed to the court.
• 🛑 The Department of Justice (DOJ) is deemed unlikely to act due to US Attorney General Pam Bondi's close ties to Trump, necessitating state-level criminal probes.

Ellison Family's Deal Engineering

• 🚀 The $8 billion merger was engineered by Larry Ellison (tech mogul) and his son David Ellison (producer), with David building a 15-year relationship with Paramount.
• 💸 Larry Ellison, the world's second richest person, provided financial backing and political clout, while David holds 50% of the voting power as Paramount CEO.
• 🎬 The Ellisons will control a media titan with extensive film libraries and iconic networks like MTV, Nickelodeon, and CBS News.

Corporate Governance & Political Influence

• 🧩 The merger features a complex voting and equity structure, where David controls votes but Larry retains significant equity, requiring Larry's approval for major decisions.
• 📊 An M&A lawyer suggested the ownership shuffle is likely a tax strategy, leveraging losses and depreciation, with David controlling votes and Larry reaping taxable benefits.
• 🤝 The deal involved political figures like Trump and Biden, with David donating to Biden's campaign and Larry having deep ties with Trump, including supporting his AI initiative.
• 📺 The cancellation of Stephen Colbert's Late Show in 2026 followed his public criticism of the Trump settlement as a "big fat bribe," fueling suspicions of retaliation against dissenting voices.