Paramount Global and Skydance Media’s $8 billion merger has been automatically extended by 90 days beyond the original April 7 deadline due to delays in regulatory approval. The new deadline is July 6, with an option for another 90-day extension if needed.
The merger, which would see Skydance take control of the iconic entertainment company, remains under review by the Federal Communications Commission. While the Securities and Exchange Commission and European Commission have cleared the deal, the FCC has yet to sign off, primarily due to pending approvals for the transfer of broadcast licenses. The review process has already outlasted the FCC’s typical 180-day informal window.
Paramount and Skydance had initially agreed to a deadline of April 7 to finalize the deal. That date has now passed without resolution, triggering the automatic extension outlined in their agreement. If the deal doesn’t close by the new July 6 deadline — or if regulators ultimately block it — either party may walk away. In that case, Paramount would owe Skydance a $400 million breakup fee.
Adding to the uncertainty, a class-action lawsuit from New York City pension funds alleges Paramount’s special committee breached its fiduciary duty by favoring the Skydance deal over a competing $13.5 billion offer from Project Rise Partners. A Delaware judge has expressed openness to the claim that the current transaction undervalues Paramount and could harm public shareholders.
Despite mounting legal and regulatory obstacles, both companies appear committed to seeing the deal through. The clock is now ticking for FCC approval and for the resolution of shareholder concerns as the merger faces increasing scrutiny from multiple fronts.