The Federal Communications Commission and Paramount Global (PARA, Financials) have started talks on how to move forward with Paramount's proposed sale to Skydance Media, according to The Wall Street Journal.

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The deal, announced last summer, has been stuck at the agency for months. With the merger clock ticking, Paramount may agree to scale back its Diversity, Equity, and Inclusion initiatives, an issue that has drawn attention from President Donald Trump and FCC Chairman Brendan Carr. Earlier this month, the merger agreement automatically extended for another 90 days, giving both sides more time.

Skydance, led by David Ellison and backed by Oracle's Larry Ellison and RedBird Capital, is aiming to take over Paramount from controlling shareholder Shari Redstone. The FCC's review is critical because it oversees the transfer of broadcast licenses, including those tied to CBS. Investigations into Disney (DIS, Financials) and Comcast (CMCSA, Financials) over similar diversity programs have already complicated the picture.

Inside Paramount, tensions have risen. CBS News, and particularly "60 Minutes," has felt the pressure. Paramount is also in settlement talks with Trump's legal team over a $20 billion lawsuit tied to an interview with Vice President Kamala Harris. While the case is widely seen as weak, a settlement could help smooth things with the administration.

Bill Owens, the executive producer of "60 Minutes," resigned this week, blaming corporate interference. Another report critical of Trump's policies, this time focused on cuts to the National Institutes of Health, is scheduled to air Sunday.

With the FCC still reviewing, the merger remains up in the air and so does the future of one of Hollywood's oldest media giants.