Federal Communications Commission (FCC) Chairman Brendan Carr announced Friday that the agency may block mergers and acquisitions of companies that maintain diversity, equity, and inclusion (DEI) policies, potentially affecting major deals like the Paramount-Skydance merger.
In a Bloomberg interview, Carr advised businesses seeking FCC approval to end what he termed "invidious forms of DEI discrimination." He suggested that maintaining such policies could prevent the FCC from finding proposed transactions to be in the public interest.
The chairman specifically highlighted two pending deals that could face scrutiny: Paramount Global's merger with Skydance Media and Verizon Communications' acquisition of Frontier Communications Parent Inc.
Research has demonstrated that workplace DEI programs often lead to increased productivity and benefit employees across various backgrounds, including different races, genders, religions, and socioeconomic groups. However, these initiatives have faced growing political opposition.
The media industry's diversity practices have particular relevance given their role in shaping public discourse and entertainment. Recent Government Accountability Office reports, championed by Representative Joaquin Castro (D-Texas), have linked limited Latino representation in media to perpetuating stereotypes about the community.
This stance from the FCC could impact pending media consolidation, including Comcast's planned spinoff of MSNBC. The announcement represents a notable shift in regulatory approach toward corporate diversity initiatives and could influence how media companies structure their workplace policies moving forward.
The chairman's declaration raises questions about the intersection of federal regulatory authority and corporate diversity programs, potentially setting up future conflicts between media companies' internal policies and their ability to pursue strategic mergers and acquisitions.