Key Points:
- An attorney for Skydance Media says the company was not involved in Paramount’s decision to cancel “The Late Show with Stephen Colbert” next year.
- Lawmakers are probing if the cancellation is tied to merger concessions with the Trump administration.
- Paramount settled Trump’s defamation suit for $16 million to help secure FCC approval for the Skydance merger.
Skydance Media says it was not involved in a decision by Paramount Global and CBS to cancel “The Late Show with Stephen Colbert” next year.
The affirmation came in a letter sent to several U.S. Senators this week following a call from some left-of-center lawmakers for a probe into whether Paramount’s decision to cancel the highly-rated late night TV program was part of the company’s concession package to secure approval from Trump administration officials for its merger with Skydance.
Paramount and Skydance announced their intention to merge last year. One of the key elements of that agreement involved the transfer of CBS-held broadcast licenses from Paramount to Skydance, a move that required approval from the Federal Communications Commission (FCC).
That approval was delayed for months while Paramount worked through a defamation lawsuit filed by President Donald Trump over an edited interview with his then-political rival that aired on “60 Minutes” last year. Paramount and CBS denied the interview was edited, and legal experts opined the network would win in court on First Amendment grounds.
Nonetheless, Paramount settled the lawsuit for $16 million earlier this month, a move that was meant to grease the wheels at the FCC. Separately, Paramount and Skydance agreed to a number of concessions, including the installation of a news ombudsman at CBS News and the donation of ad inventory that will be used by conservative organizations and causes.
The FCC approved the broadcast license transfers last week. The following day, Paramount and Skydance said they expected their merger to close in early August.
On his late night program, Colbert characterized the settlement between Paramount and Trump as a “bribe.” Days later, he announced to his audience that the Late Show will come to an end in May 2026, timing that coincides with the expiration of his talent contract.
Executives at Paramount said the decision was purely financial, and not related to the Skydance merger or any political element. But some Democratic lawmakers were not sure, suggesting the timing of the cancellation coupled with key concessions made by Paramount and Skydance to the Trump administration were too suspect.
The lawmakers — Senators Elizabeth Warren, Ron Wyden and Bernie Sanders — sent seven pointed questions to Skydance CEO David Ellison, asking if the company had any direct involvement with Paramount’s legal settlement and its concessions with the FCC.
Stephanie Kyoko McKinnon, an attorney representing Skydance and the company’s co-President of Business Operations, said the company “fully complied with all applicable laws, including our nation’s anti-bribery laws” during its merger process with Paramount.
Skydance had no involvement in the decision by CBS and Paramount to cancel the Late Show, McKinnon wrote.
“Paramount did provide notice of its decision to Skydance, but only after Paramount reached its own independent decision, and short before Paramount publicly acknowledged the cancellation,” McKinnon affirmed.
McKinnon did not say whether Skydance had agreed to set aside ad inventory for public service announcements across Paramount’s networks when its merger closes. She only reaffirmed that Skydance was not a party to Paramount’s lawsuit involving Trump.
“Paramount had full discretion to settle any outstanding litigation unrelated to the transaction for up to $50 million without Skydance’s consent,” McKinnon wrote. The legal settlement with Trump came under that amount because the company agreed to donate $16 million toward the build-out of Trump’s future presidential library or museum. No money will go directly to him.
Paramount did reach out to Skydance for one of its concessions: The company will release full, unedited transcripts connected to interviews with presidential candidates in the future. McKinnon said Paramount didn’t need to get Skydance’s blessing for CBS News to do this, but gave it anyway.
Skydance has committed to ending diversity and equity (DEI) programs at Paramount once the deal closes, something that McKinnon restated in her letter to the senators.
“Skydance is committed to promoting non-discrimination and equal employment opportunity and fully complying with applicable laws,” she wrote.
