FCC Officials Accepted $63,000 in Paramount Gifts as $110 Billion Merger Review Looms
Updated
Updated · ProPublica · Jul 15
FCC Officials Accepted $63,000 in Paramount Gifts as $110 Billion Merger Review Looms
3 articles · Updated · ProPublica · Jul 15
Summary
Brendan Carr accepted at least $63,000 in Kennedy Center gala tickets from CBS or Paramount since 2017, while Olivia Trusty took more than $12,000 in tickets after casting a key vote for Paramount’s $8 billion Skydance merger.
Ethics experts told ProPublica those gifts create an obvious conflict because Paramount has pending business before the FCC, and said Carr and Trusty should recuse from any decision on Paramount’s planned tie-up with Warner Bros. Discovery.
That review is one of the last hurdles for a $110 billion Hollywood consolidation that would combine CBS, CNN, Paramount+ and HBO Max under one company, with the three-member FCC likely split 2-1 along party lines.
The FCC said ethics officers had long cleared attendance under a widely attended gathering exception, but experts disputed that rationale and warned any approval could face legal challenges or even Justice Department scrutiny.
The report also found seven of 10 commissioners since 2016 accepted more than $260,000 in gala tickets from CBS or Paramount, underscoring a broader pattern of gift-taking by the agency’s media regulators.
For a major media merger, what is the greater risk: commissioners’ ethics or foreign influence over American news?
When regulators follow internal rules, why do experts say their actions could jeopardize a $110 billion media merger?
FCC Gift Scandal and Paramount-Warner Bros. Merger: Regulatory Capture, Antitrust Lawsuits, and the Future of U.S. Media
Overview
The report reveals how FCC officials, including Chair Brendan Carr, accepted expensive gifts from Paramount while the company sought agency approval for major deals. Ethics experts warn that such high-value gifts, like $63,000 in gala tickets, threaten the impartiality of regulators. Although federal rules generally prohibit gifts from prohibited sources, exceptions like 'Widely Attended Gatherings' (WAGs) exist, but require strict agency approval. This controversy highlights concerns about regulatory capture, where agencies may serve industry interests over the public good, raising serious questions about the independence and trustworthiness of federal oversight in high-stakes media mergers.