President Donald Trump has thrown his support behind the $8 billion Skydance Media merger with Paramount Global (PARA), calling David Ellison “great” and saying “he’ll do a great job.” The public nod adds a fresh political layer to a deal already entangled in legal and regulatory hurdles.
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The proposed merger would combine Skydance and Paramount Global into “Paramount Skydance Corporation,” a $28 billion entertainment powerhouse. The plan unfolds in two phases: Skydance investors will first pay $2.4 billion to acquire National Amusements Inc., the Redstone family’s holding company, followed by a full merger with Paramount. David Ellison is slated to lead the new company, with his father, Oracle co-founder and GOP megadonor Larry Ellison, becoming its largest shareholder.
The deal would bring together iconic assets including CBS, Paramount+, Showtime, Comedy Central, and BET. It was initially expected to close in early 2025, but a revised deadline now sets July 7, 2025, as the target.
Deal Is Awaiting Approval
Complicating matters is Trump’s $20 billion lawsuit against CBS and its parent, Paramount, over a 2024 “60 Minutes” segment involving then-Vice President Kamala Harris. Trump linked the lawsuit to delays in the merger and hinted at progress in settlement talks, citing the recent departure of top CBS executives.
Regulatory approval remains a key hurdle. The SEC and EU regulators signed off in February, but the FCC is still reviewing the transfer of 29 CBS stations. Pressure from lawmakers and DEI-related issues has added friction. Skydance has intensified its lobbying efforts to advance the deal.
Trump’s endorsement may help clear the path. Following his comments, PARA stock moved slightly higher. Whether the political backing speeds up FCC approval or influences the lawsuit’s outcome remains to be seen, but the merger is clearly attracting attention on Wall Street and in Washington.
Is PARA Stock a Buy?
According to The Street’s analysts, Paramount Global is a Hold, with an average PARA stock price target of $12.08. This implies a 0.33% upside.
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