Lucas Shaw, a Bloomberg reporter, joins to unravel the tangled web of the Paramount Global sale to Skydance Media. They discuss unexpected hurdles, including a lawsuit tied to Donald Trump that complicates the deal. The conversation also highlights implications for future Hollywood mergers and the shifting dynamics amid regulatory scrutiny. Additionally, Shaw offers insights into the Oscar race, especially focusing on the buzz around the film Anora and what it could mean for this awards season.
The complicated Paramount sale has become entangled in political disputes, influencing corporate decisions and the merger landscape in Hollywood.
Donald Trump's lawsuit over a CBS interview is creating immense pressure on Paramount's Shari Redstone, complicating the sale's resolution.
Deep dives
Sherry Redstone's Paramount Sale Challenges
The sale of Paramount, a deal valued at $8 billion and orchestrated by Sherry Redstone, has become embroiled in complex politics due to the involvement of Donald Trump. Despite her long-standing friendship with Trump and recent criticisms from him regarding CBS News edits, the review process has become contentious. Brendan Carr, the FCC commissioner, has opened inquiries impacting the sale, complicating Redstone's objectives. Navigating the demands of media licensing and avoiding legal disputes has put immense pressure on Redstone to resolve issues swiftly, possibly even considering settlements with Trump's team.
60 Minutes Controversy and Its Implications
The recent controversy surrounding CBS's 60 Minutes, where Trump accused them of misleading edits in an interview with Kamala Harris, adds a significant layer to the Paramount sale. Trump initially sued for $10 billion, a figure that has now escalated to $20 billion, prompting discussions about potential settlements. Bill Owens, head of 60 Minutes, has publicly maintained that the edits were standard practice, creating a divide between journalistic integrity and corporate strategy. The risk of CBS apologizing or settling for financial reasons could set a troubling precedent for the media landscape.
The Role of Politics in Media Mergers
The podcast highlights the intersection of politics and media mergers, particularly how Trump's influence manifests through FCC reviews. Brendan Carr's recent actions indicate that he may be leveraging Trump's grievances to control the timeline of the Paramount sale, effectively holding the deal at ransom. This poses broader implications for future mergers, as media companies may face similar pressures if they attract Trump's ire. Companies like Comcast and Warner Discovery might be equally cautious, impacting their merger strategies amid a politically charged environment.
Impact of the Ongoing Drama on Paramount's Future
This protracted dispute has left Paramount in a troubling state of uncertainty, with its streaming strategy and overall direction becoming increasingly clouded. Amid the threats of shareholder lawsuits and the potential fallout from the FCC's inquiries, executives at Paramount are left in a holding pattern as they await a resolution of the sale. The involvement of high-profile figures like Larry Ellison adds another layer of complexity, as stakeholders weigh their political affiliations against business necessities. The overarching narrative reveals how political maneuvering can tangibly affect corporate decisions and the strategic futures of major media entities.
Matt is joined by Bloomberg’s Lucas Shaw to discuss the complicated holdup in the sale of Paramount Global to David Ellison and his company, Skydance Media. They break down the situation—which involves Donald Trump's lawsuit over Kamala Harris's '60 Minutes' interview on CBS—and consider the options for Paramount Global head Shari Redstone to get this deal done. They also look ahead at the implications this may have for future mergers in Hollywood (03:32). Matt finishes the show with a prediction about the Academy Awards' Best Picture race (24:47).
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