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PARA
New York Post
172 days

Why the FCC probe into Paramount-Skydance merger could drag on for months: sources

1. FCC delays approval of $8 billion Skydance-Paramount merger until late 2025. 2. Inquiry focuses on CBS News' alleged public interest violations amid political controversies. 3. Possible remedies discussed include relocating CBS operations and increasing political diversity. 4. Legal costs and bureaucracy may further prolong the merger approval process. 5. Continued scrutiny on CBS could affect Paramount's future strategies and revenues.

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FAQ

Why Bearish?

The prolonged regulatory scrutiny is likely to create uncertainty and delay cash flows. Historical examples show delays in regulatory approvals can lead to decreased investor confidence and stock price drops.

How important is it?

The article's focus on the merger directly affects PARA's valuation and market dynamics. Given the substantial merger amount and potential legal hurdles, it significantly impacts investor sentiment.

Why Long Term?

The regulatory inquiry is expected to extend through 2025, affecting strategic planning. A similar pattern was seen with other mergers that faced prolonged FCC investigations.

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