NEW YORK CITY, New York: A new era in Hollywood is taking shape. U.S. regulators have approved the US$8.4 billion merger of Paramount Global and Skydance Media, paving the way for tech heir David Ellison to take control of some of the most iconic names in entertainment, including CBS, Paramount Pictures, and Nickelodeon.

However, the deal, approved this week after a partisan 2-1 vote by the Federal Communications Commission (FCC), has been shadowed by political controversy and questions over media independence in an election year.

Paramount recently paid $16 million to settle a lawsuit brought by President Donald Trump over CBS News' editing of a "60 Minutes" interview with his Democratic opponent Kamala Harris. This raised concerns that the settlement was made to smooth the merger's path. FCC Democrat Anna Gomez, the lone dissenter, condemned the move as "cowardly capitulation" and criticized the agency for imposing "never-before-seen controls over newsroom decisions."

Chairman Brendan Carr, a Republican and Trump appointee, said the settlement had no bearing on the FCC's decision and emphasized that Skydance provided assurances of a commitment to unbiased journalism.

Those assurances include the appointment of an ombudsman to review complaints about editorial bias and a pledge not to implement any diversity, equity, and inclusion (DEI) initiatives, an issue Trump has called discriminatory. Carr praised the pledges, saying they would allow CBS to "operate in the public interest" and called it "another step forward" in eliminating DEI-based policies.

Some lawmakers remain unconvinced. Senators Edward Markey and Ben Ray Luján said the timing of the lawsuit settlement and merger approval "reeks of the worst form of corruption."

Comedian and CBS host Stephen Colbert had called the settlement "a big fat bribe" on air. His show was canceled days later. Paramount claimed the decision was financial.

The merger ends the Redstone family's decades-long hold on Paramount. Shari Redstone, who took over as chair in 2019, had hoped to strengthen the company against streaming giants. But Paramount's market value has plunged in recent years, accelerating the push for a sale.

David Ellison, son of Oracle founder Larry Ellison, will become chair and CEO of the new entity. Jeff Shell, former NBCUniversal chief, will serve as president. Chris McCarthy, one of Paramount's current co-CEOs, will exit after the deal closes.

The FCC's review lasted over 250 days—far longer than its 180-day target.