Paramount promises to abstain from DEI programs to secure Skydance merger

Dive Brief:

• Paramount’s merger with Skydance was approved by the Federal Communications Commission on Thursday, explicitly on the condition that Paramount will no longer have DEI programs at the company.
• “I write to confirm the elimination of diversity, equity, and inclusion (DEI) initiatives that were in place at Paramount and to confirm our commitments moving forward,” Stephanie Kyoko McKinnon, general counsel and co-president of business operations at Skydance, wrote in a letter to the FCC.
• In a separate statement, FCC Chairman Brendan Carr responded, saying, “Today’s decision also marks another step forward in the FCC’s efforts to eliminate invidious forms of DEI discrimination.”

Dive Insight:

The FCC’s apparent stipulation that Skydance commit to refraining from DEI practices is the latest example of the U.S. federal government affecting talent strategy in the private sector. Previously, the U.S. Equal Employment Opportunity Commission’s acting chair, Andrea Lucas, sent letters to 20 law firms regarding DEI-related employment practices.

Still, the move is aligned with a shift to Paramount’s DEI strategy that began months ago. The entertainment distributor had already been distancing itself from diversity and inclusion measures. 

Back in February, Paramount’s co-CEOs told staff that they would be eliminating diversity-related hiring goals and ending collection of demographic data. This prompted some employees shortly after to voice their discontent with Paramount’s anti-DEI decisions in an open letter.

This also isn’t the first time that Paramount has been at the center of conservative culture wars. In February 2024, America First Legal announced it had filed a lawsuit against Paramount Global, CBS Entertainment, and CBS Studios for alleged discrimination against its client: Brian Beneker, a straight white man who had been script coordinator and freelance scriptwriter for the CBS show “Seal Team.”

In April, AFL announced that Paramount Global and CBS Studios had agreed to a settlement. AFL also painted Paramount and CBS’ fall back from DEI “requirements” as a victory for “merit-based considerations.”

Now, as part of Skydance’s merger, Paramount will no longer have DEI-related “disparate treatment” in hiring decisions or numerical goals and will not offer bonus compensation related to progress against DEI goals. Requirements for supplier and vendor diversity, and external and internal DEI messaging are now off-limits. 

Paramount’s ERGs will continue to operate, with corporate oversight. “ERGs will continue to remain open to all, regardless of race, ethnicity, sex, gender or other demographic characteristics,” the letter stated. “It will not draw distinctions based on any protected characteristic in granting permission to groups and events.”