Skydance Cuts DEI Policies at Paramount to Meet FCC Pledge

Skydance and Paramount's Shift in Diversity, Equity, and Inclusion Policies

Skydance Media has announced that the diversity, equity, and inclusion (DEI) policies of Paramount Global will be discontinued once the Federal Communications Commission (FCC) approves the proposed merger between the two entertainment companies. This decision marks a significant shift in corporate strategy, reflecting broader changes in how companies approach DEI initiatives.

In a letter addressed to FCC Chairman Brendan Carr, Skydance, acting on behalf of Paramount, reaffirmed its commitment to complying with federal anti-discrimination laws. The letter stated, "Skydance, for its part, does not have DEI programs in place today and will not establish such initiatives." It emphasized the company’s dedication to ensuring that its storytelling reflects the diverse audiences it serves while adhering to non-discrimination requirements and other applicable laws.

This move follows a February announcement by Paramount to eliminate its DEI practices in response to President Donald Trump's executive order, which directed federal agencies to investigate private companies over their DEI programs. The company's leadership cited this order and the Supreme Court's 2023 decision in Students for Fair Admissions v. Harvard, which ruled race-based affirmative action programs in college admissions unconstitutional.

Prior to the second Trump administration, conservative legal experts had already applied the Supreme Court ruling to private companies. In its letter, Skydance confirmed that Paramount will no longer factor DEI into its hiring practices, employee compensation, and public messaging, among other areas.

The corporate change comes as Skydance and Paramount await approval from the FCC for their $28 billion merger. The concessions on DEI are expected to help secure the agency’s approval of the deal.

Recent Developments and Legal Settlements

Earlier this month, Paramount settled a lawsuit filed by former President Donald Trump, who alleged that a recent 60 Minutes interview with then-Democratic presidential candidate Kamala Harris contained deceptive editing. CBS News, which is owned by Paramount, airs the weekly news program. The settlement was reported to be $16 million, significantly lower than the $20 billion in damages Trump initially sought.

Trump claimed on Tuesday that Skydance would contribute $20 million in advertising, public service announcements, or similar programming as part of a side deal alongside the $16 million settlement. However, Skydance and Paramount have disputed the existence of such a side deal.

Critics argue that the settlement was part of a broader agreement between Paramount and Trump to facilitate the merger with Skydance. This speculation arises in the context of CBS recently deciding to end Stephen Colbert's late-night show, The Late Show with Stephen Colbert, which has often featured sharp criticism of Trump. The show is set to conclude in May 2026 after a decade-long run.

Commitment to Unbiased Journalism

Beyond eliminating DEI practices, Skydance has pledged to hire an ombudsperson to ensure that CBS publishes unbiased journalism. This measure is intended to address Trump's claims that the broadcaster is biased. The ombudsman will report to the president of the consolidated company for at least two years.

A separate letter from Skydance stated, "Skydance recognizes that, as a broadcast licensee, it will be charged with operating in the public interest, and the company intends to undertake a comprehensive review of CBS and to make any necessary changes to ensure compliance with that standard." It added, "In all respects, Skydance will ensure that CBS's reporting is fair, unbiased, and fact-based."

Ongoing Discussions and Public Reactions

These promises come after Skydance CEO David Ellison met with FCC Chairman Carr last week to reaffirm the company's commitment to unbiased journalism and diverse viewpoints. The letters were dated Tuesday but were not widely reported until Wednesday.

In addition, over 200,000 people have signed a petition to keep Stephen Colbert on air, highlighting the public's strong reaction to the potential cancellation of his show. As the merger moves forward, these developments underscore the complex interplay between corporate strategy, legal challenges, and public opinion in the media landscape.