Monday, August 04, 2025

Trump FCC's Approval of Paramount-Skydance Merger 'Reeks of the Worst Form of Corruption

"The stench of this transaction will linger over the commission for years," said a pair of Democratic senators.




Federal Communications Commission Chairman Brendan Carr testifies during a House hearing on May 21, 2025.
(Photo: Tom Williams/CQ-Roll Call, Inc. via Getty Images)

Jake Johnson
Jul 25, 2025
COMMON DREAMS

The Republican-controlled Federal Communications Commission on Thursday gave formal approval to the $8 billion merger of CBS owner Paramount and the media firm Skydance, which won over the agency's Trump-appointed chairman with pledges to review CBS' content and appoint an ombudsman to evaluate claims of bias.

The FCC's two Republicans, Chairman Brendan Carr and Commissioner Olivia Trusty, supported approval of the merger, a decision that comes weeks after Paramount agreed to pay $16 million to settle President Donald Trump's lawsuit over the organization's handling of a pre-election "60 Minutes" interview with Kamala Harris.

Anna Gomez, the FCC's lone Democratic-appointed commissioner, said Thursday that "after months of cowardly capitulation to this administration, Paramount finally got what it wanted."


"Despite this regrettable outcome, this administration is not done with its assault on the First Amendment," said Gomez, who opposed the merger. "In fact, it may only be beginning. The Paramount payout and this reckless approval have emboldened those who believe the government can—and should—abuse its power to extract financial and ideological concessions, demand favored treatment, and secure positive media coverage. It is a dark chapter in a long and growing record of abuse that threatens press freedom in this country."

"The partisan vote is a dark day for independent journalism and a stain on the storied history of the Federal Communications Commission."

Democratic lawmakers responded with similar disgust and alarm. In a joint statement, Sens. Ed Markey (D-Mass.) and Ben Ray Luján (D-N.M.) said the merger approval "reeks of the worst form of corruption."

"While we're glad that the commission took a vote on the deal, as we have repeatedly called for, the partisan vote is a dark day for independent journalism and a stain on the storied history of the Federal Communications Commission," the senators added. "The stench of this transaction will linger over the commission for years."

Sen. Elizabeth Warren (D-Mass.) said that "this merger must be investigated for any criminal behavior."

"It's an open question whether the Trump administration’s approval of this merger was the result of a bribe," said Warren.

Under the publicly available terms of the Paramount settlement, the company agreed to put $16 million toward Trump's future presidential library. But Trump has claimed that the deal is actually worth more than twice the publicly reported figure, asserting that Skydance agreed to spend $20 million on "advertising, PSAs, or similar programming."

Earlier this week, Warren and two other senators demanded answers from Skydance CEO David Ellison about the purported side deal, which the lawmakers described as a "potential secret Trump payoff."

Conor Gaffney and Janine Lopez, attorneys at the nonprofit group Protect Democracy, wrote Thursday that "no doubt the boards of Paramount and Skydance are hoping this saga ends today—now that they've appeased the FCC and cleared merger review."

"But as we've seen time and again, businesses that capitulate to the Trump administration find themselves captured rather than in the clear—with the president quick to change his mind and come back for more," they wrote. "The costs of capitulation are higher than they might initially seem, and the business calculation that Paramount and many others have made may be wrong. The price of protection only goes up, and the mob keeps coming around."



Antitrust Group Demands Probe of Bondi's Role in 'Corrupt' Merger Settlement

"Looks like there was just an attempted coup at the antitrust division, led by Pam Bondi's chief of staff and a set of corporate lobbyists."


U.S. Attorney General Pam Bondi speaks to reporters in the briefing room at the White House on June 27, 2025.
(Photo: Joe Raedle/Getty Images)

Jake Johnson
Jul 25, 2025
COMMON DREAMS

An antitrust advocacy organization on Thursday urged Congress to investigate U.S. Attorney General Pam Bondi's role in a merger settlement deal that the Justice Department struck with Hewlett Packard Enterprise and Juniper Networks last month.

"Congress must immediately open an investigation into Attorney General Pam Bondi's involvement in what appears to be a corrupt and politically rigged merger settlement," Nidhi Hegde, executive director of the American Economic Liberties Project, said in a statement Thursday.

The deal in question allowed the two companies' $14 billion merger to proceed, capping off a legal fight that the Justice Department launched in late January. At the time, the Justice Department argued HPE's acquisition of Juniper would unlawfully stifle competition, raise prices for consumers, and harm innovation.

The Capitol Forum on Thursday described the terms of the settlement as strange and reported that the deal divided the Justice Department internally, pitting the head of the antitrust division against top DOJ officials including Bondi chief of staff Chad Mizelle, who ultimately "overruled" the antitrust chief.

"Mizelle's close involvement in the matter is highly unusual—as is the fact that no DOJ trial attorneys signed the resulting consent decree papers," the outlet noted. "It also raises questions that won't be quieted by HPE's July 7 disclosure that it retained MAGA-aligned antitrust thought leader Mike Davis to advocate for the deal."

"In addition to Davis, HPE, in working to short-circuit the antitrust division's case, hired multiple lobbyists close to the White House, including Arthur Schwartz, a close confidante of Vice President JD Vance," the outlet added.

The settlement still must undergo a Tunney Act review by the federal judge in the case, Casey Pitts of the U.S. District Court for the Northern District of California. While that process is "typically a rubber stamp," The Capitol Forum reported, "there's a meaningful chance that this time will be different" given the "substantive and procedural smoke around the HPE/Juniper matter."

As part of the deal with the Justice Department, HPE agreed to divest its Instant On business. But, citing an industry analyst and other unnamed sources, The Capitol Forum reported that "Instant On is targeted at small and medium-sized businesses and isn't an option for the large, 'enterprise-grade WLAN solutions' customers DOJ's complaint alleged the merger would harm."

The Capitol Forum's story drew fresh scrutiny to the settlement and raised alarm about the potential involvement of Bondi, herself a former corporate lobbyist.
Hegde of the American Economic Liberties Project said Thursday that "when DOJ leadership overrules its own antitrust staff and forces a weak settlement that clearly favors corporate interests, both congressional oversight and judicial review under the Tunney Act become essential safeguards."

"Every member of Congress, along with the judge in the case, should be alarmed by signs that DOJ leadership is auctioning off merger enforcement rather than enforcing the law. The integrity of our antitrust system cannot be compromised by backroom deals or political interference," said Hegde. "Given the clear signs of improper influence, along with the mismatch between the alleged harms and the remedy, Judge Pitts must also use his authority under the Tunney Act to scrutinize this settlement in the best interest of the public."


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