After lastly getting approval from the Federal Communications Fee, Skydance Media is simply weeks away from finishing its $8-billion merger with Paramount World, resulting in sweeping adjustments for a few of the most iconic media manufacturers.

CBS, MTV Networks and Paramount Photos are all bracing for upheaval when Larry Ellison and his son, David, take the keys from Paramount World controlling shareholder Shari Redstone. The long-running possession saga has performed out whereas the foundations of the media trade have been upended by streaming and, extra lately, a White Home unafraid to make use of its muscle to silence critics.

Skydance and its backer, RedBird Capital Companions, have promised traders that it’s going to discover $2 billion in price financial savings, which implies additional belt-tightening and layoffs.

“This will be the most dramatic change to the organization since its inception,” mentioned one longtime CBS insider who was not approved to remark publicly.

Here’s what Wall Avenue and the media trade can be awaiting as soon as the deal closes on Aug. 7:

Will Skydance spend sufficient to supercharge streaming?

Final yr, Paramount+ added 10 million new subscribers to achieve 77.5 million. Its subscriber depend is now 79 million, thanks additionally to NFL programming, CBS reveals akin to “NCIS” and unique hits together with “1923,” “Landman,” “Lioness” and “Tulsa King.” Paramount has projected full-year U.S. profitability for Paramount+ this yr, making it one of many quickest subscription providers to get there.

However its comparatively scant assets and thinner slate has made it tough to really compete with Netflix and the opposite largest gamers. One potential resolution: partnering with a rival streamer to extend its attain.

“Questions around the long-term scalability of Parmamount+ continue to loom large,” analyst agency MoffettNathanson famous in a report Friday. “Will the new management team pursue external partnerships as a viable path forward?”

Ellison and his crew have urged that they’ll deliver a tech-focused sensibility to Paramount. Technological prowess would assist Paramount+ enhance its consumer interface and suggestion course of, which insiders acknowledge is at present underwhelming. As anticipated, the architect of Paramount+ unique collection technique, Paramount World co-CEO Chris McCarthy, will depart when the deal closes.

Can conventional TV be saved?

Analysts additionally need to see Skydance will enhance funding in movie and TV franchises to revive property which were constrained by Paramount’s debt.

Whereas Skydance will get a strong library of movies and TV reveals, it’ll even be confronted with the slow-melting iceberg that’s broadcast and cable TV, which continues to lose viewers. Streaming has surpassed broadcast and cable because the main supply of video consumption simply as Skydance takes over CBS and Paramount World’s array of channels that embody MTV, BET and Comedy Central.

Doug Creutz, an analyst for TD Cowen, believes the merged firm ought to contemplate spinning off conventional TV companies, just like what Warner Bros. Discovery and Comcast are doing with their cable channels. Whether or not that can occur stays to be seen.

“There is a clear opportunity to improve Paramount’s growth profile by letting those assets go,” Creutz wrote Friday. “On the other hand, we suspect the Ellisons did not purchase Paramount in order to break it up for parts.”

A take a look at of Skydance’s dedication to broadcast could come if the FCC relaxes TV station possession guidelines, which might possible result in consolidation.

“60 Minutes” correspondent Lesley Stahl with Georgia Republican Rep. Marjorie Taylor Greene.

(CBS Picture Archive / CBS through Getty Pictures)

How will ’60 Minutes’ reset?

Simon’s appointment is predicted to supply stability following the departure of longtime showrunner Invoice Owens, who was pressured out amid the push for a $16-million settlement over President Trump’s lawsuit claiming this system deceptively edited an interview with former Vice President Kamala Harris to make her look higher to voters.

Getting it proper issues from a enterprise perspective too, as “60 Minutes” stays essentially the most worthwhile program on CBS.

“South Park” characters Eric Cartman, left, Stan Marsh, Kyle Broflovski.

(Comedy Central)

Will artistic freedom be examined?

CBS canceled “The Late Show With Stephen Colbert,” upsetting his followers, progressive Democratic legislators and different late-night hosts who make their dwelling lampooning President Trump.

The community mentioned it was strictly a enterprise resolution, because the youthful viewers who made late-night TV monstrously profitable for many years are not displaying up. The timing of the transfer made the corporate look as if it had been capitulating to Trump, who lengthy had the host on his enemies checklist.

However Colbert will stay on the air via Could. The present has already been bought to advertisers for subsequent season. The host has remained unrelenting in his mockery of Trump.

The season premiere of “South Park” solely upped the ante. The animated collection made references to the “60 Minutes” deal, confirmed Trump in mattress with the satan and aired its personal model of a Trump-mandated PSA, displaying a unadorned president with speaking genitalia.

There isn’t a query each reveals will take a look at the persistence of the brand new homeowners.

Pulling Colbert off or censoring the “South Park” creators, who simply acquired a $1.5-billion deal to proceed their present and transfer its library to Paramount+, would result in a far larger backlash than what has been seen thus far. Any try and curtail their voices will ship a unfavourable message to artistic varieties who contemplate working with the corporate’s film and TV operations going ahead.

Tom Cruise in “Mission: Impossible: Dead Reckoning Part One” from Paramount Photos and Skydance.

(Paramount Photos and Skydance)

Can the film enterprise be revived?

Over the previous few years, Paramount Photos — dwelling of franchises akin to “Transformers” and “Mission: Impossible” — has ranked both fifth or fourth on the home field workplace. Up to now this yr, the lone main film studio nonetheless situated in Hollywood correct has accounted for about 7% of ticket gross sales within the U.S. and Canada, in accordance with field workplace web site the Numbers.

Because the pandemic, the corporate has loved quite a few main hits, together with “Top Gun: Maverick” and “Sonic the Hedgehog 3.” It has additionally had some strong singles and doubles, together with “Bob Marley: One Love.” However general, the more-than-century-old studio has struggled from underinvestment in its mental property and film manufacturers.

The most recent “Mission: Impossible” starring Tom Cruise — the eighth and purportedly final within the collection — grossed $589 million globally however price $300 million to $400 million to make, not together with advertising prices. Paramount’s newest effort, an animated “Smurfs” reboot, sputtered on the field workplace. Subsequent up: a reboot of “The Naked Gun.”

The unit’s chief, Brian Robbins (additionally head of Nickelodeon at Paramount World), is predicted to depart the studio, although he has not formally introduced his plans. David Ellison is a film fan and is predicted to take a specific curiosity within the operation, with plans to place Skydance’s chief artistic officer, Dana Goldberg, in control of movie at Paramount. Skydance has labored with Paramount on films earlier than, producing “Maverick” and the “Missions: Impossible” movies

HOUSTON, TEXAS – JANUARY 11: Denico Autry #96 of the Houston Texans sacks Justin Herbert #10 of the Los Angeles Chargers in the course of the second half of the AFC Wild Card Playoff sport at NRG Stadium on January 11, 2025 in Houston, Texas. (Picture by Brandon Sloter/Getty Pictures)

(Brandon Sloter / Getty Pictures)

Will the NFL take its ball elsewhere?

A switch of possession means the NFL can reopen its long-term take care of CBS, which has a Sunday package deal of video games, the AFC Championship Recreation and two Tremendous Bowls. The NFL is the lifeblood of broadcast tv, offering a overwhelming majority of the yr’s most-watched applications.

With out the NFL, CBS would face super challenges in getting charges from pay TV operators who carry its stations. Income from associates who pay the community for its programming would additionally dramatically decline.

Though the NFL is understood for taking a pound of flesh at each alternative, NFL Commissioner Roger Goodell has signaled he’ll give cautious consideration earlier than making any adjustments.

“We’ve had a long relationship with CBS for decades and we also have a relationship outside of that with Skydance,” Goodell advised CNBC earlier this month. “We have a two-year period to make that decision. I don’t see that happening, but we have the option and it’s something we’re going to look at.”

The NFL may wait till 2029 when it has the choice to open up the contract with all of its media companions. The brand new media deal for the NBA — $76 billion over 11 years — has the NFL believing its pact is underpriced.

Occasions workers author Meg James contributed to this report.