Movies

Paramount agrees to pay $16 million to settle Trump’s CBS ’60 Minutes’ lawsuit

BBG News

Paramount Global has decided to compensate Donald Trump with $16 million to settle his lawsuit about alterations in a “60 Minutes” interview — a legal dispute that stirred up CBS News, led to notable resignations, and potentially jeopardized the company’s planned acquisition.

As a devoted cinephile, I’d say it this way: My funds are earmarked for Trump’s upcoming Presidential Library. Regarding the controversy surrounding CBS News’ coverage and edits, Paramount chose not to issue an apology or express remorse in our dealings.

According to their statement, neither President Trump nor anyone else will receive any payment as a result of this settlement. The agreement resolves all disputes related to any CBS news coverage up until the time of the settlement, encompassing both the Texas lawsuit and the potential defamation case.

In this scenario, Paramount chose to negotiate with the president instead of engaging in a pricey legal battle over “60 Minutes” and its reporters. This decision sparked criticism from First Amendment experts who viewed the lawsuit as baseless and the negotiations leading to the Tuesday settlement as extortionate.

The executive team is optimistic that the settlement will pave the way for the company’s acquisition by David Ellison’s Skydance Media, assuming it receives approval from the Federal Communications Commission.

Rather than expediting the examination of the proposed Paramount-Skydance merger, the FCC chairman, appointed by President Trump, initiated an investigation into whether the edits made to the October “60 Minutes” interview with Vice President Kamala Harris amounted to news manipulation.

In the future, transcripts of interviews conducted by ’60 Minutes’ with qualified U.S. presidential candidates will be made public following their broadcast, but any necessary redactions due to legal or national security issues will be applied first, as stated by the Company.

For the last two months, both parties have been involved in negotiation meetings facilitated by a mediator. The mediator has put forth a proposal for a resolution, which Paramount acknowledges. As part of this settlement, Paramount is expected to pay $16 million, covering Trump’s legal fees as well.

Trump has consistently claimed that an interview he had with “60 Minutes” in the fall was manipulated to portray Kamala Harris as more intelligent, to enhance her chances in the November elections. However, CBS refuted these accusations, stating that the edits made were simply standard practice.

The unedited footage confirmed that Harris was accurately quoted.

However, Trump’s legal team asserted that the revisions inflicted emotional distress on Trump. Upon his return to the White House this year, Trump amplified his request for damages in the lawsuit from $10 billion to a staggering $20 billion.

Last month, Trump informed reporters on the White House lawn that her response was “very problematic” or “dangerous for the election,” given its lack of competence. In simpler terms, he meant her answer posed a risk to the election due to its apparent ineptitude.

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I’ve taken it upon myself to advocate for a hearing to scrutinize Paramount Global’s endeavors regarding the settlement of Donald Trump’s $20-billion lawsuit. As a state senator from Menlo Park, I find it unprecedented that a president would act in such an audacious manner.

Trump’s lawsuit claimed that the edits were intentionally misleading, deceitful, and a significant distortion of real news designed to confuse, deceive, and mislead the public. The changes, according to the suit, were biased, illegal actions aimed at interfering with elections and voter decisions.

CBS admits that they edited the interview, a common practice in journalism. For centuries, First Amendment understandings have allowed news broadcasters considerable freedom to choose what content to air as long as they don’t mislead viewers about the facts presented.

Shari Redstone, major shareholder of Paramount, advocated for a resolution. The Redstone family’s financial entity, possessing the majority stake in Paramount, is grappling with over $400 million in debt and she aimed to expedite the sale of Paramount, along with her family’s holding company, to Skydance.

Relatives are anticipating their share of the money from the Paramount sale. It’s been stated that Redstone stepped away from discussions related to Trump’s lawsuit, although it’s clear she wants a resolution.

The Redstone family controls 77% of Paramount voting shares.

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Trump praised Ellison, expressing his belief that Ellison would excel at the task, as he spoke to journalists during a press conference held on the White House lawn on Wednesday.

Skydance executives and their financial backers urged Paramount to put an end to the dispute with Trump in order to alleviate a major concern before the new management assumes control.

In my perspective, I’d say that Paramount clearly stated that Trump’s legal action is entirely distinct and disconnected from our ongoing transaction with Skydance and the FCC’s approval process.

Approximately a year has passed since Redstone and other Paramount directors endorsed Skydance’s two-stage $8-billion agreement, which transferred ownership of the company to tech tycoon Larry Ellison and his kin.

David Ellison’s son shows great enthusiasm about taking over the business that encompasses the iconic Melrose Avenue film studio, the Paramount+ streaming platform, CBS, and cable networks such as Comedy Central, Nickelodeon, and BET.

In the second stage of the deal, it’s anticipated that Skydance’s operational and staff functions will be integrated with those of Paramount.

The agreement encounters just one more administrative obstacle: securing FCC Chairman Brendan Carr’s endorsement for the transfer of over two dozen CBS station licenses to the Ellisons. The FCC’s decision on this matter has been delayed for several months now.

Skydance and Paramount face an October deadline to finalize the deal or risk its collapse.

In order to meet her obligations towards her creditors, such as Larry Ellison, amounting to hundreds of millions of dollars, Redstone might be inclined to pursue a settlement agreement instead.

Journalists criticized her move to prioritize free speech values, as the Freedom of the Press Foundation strongly objected to Paramount’s plan to relinquish 1st Amendment rights in support of the Skydance deal. They threatened legal action against Paramount if they went ahead with the settlement.

But the deal’s months-long delay was wearing.

Redstone separately disclosed in early June that she was being treated for thyroid cancer.

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According to Mario Gabelli, a long-term Paramount shareholder, they need to secure approval for [the proposed deal], he stated. Both Gabelli and others are anticipating a fresh start, however, the Skydance deal has become a challenging and slow process.

The story kicked off in the autumn as CBS News extended invitations to both Harris and Trump for an interview on “60 Minutes,” a customary event during election campaigns. However, after initially accepting, Trump later reneged on his commitment.

CBS decided to air the interview with Kamala Harris, but encountered controversy when they showed parts of her reply to a question from CBS journalist Bill Whitaker. During a discussion about challenges faced by the Biden Administration in handling relations with Israel’s prime minister, Harris responded with a brief three-sentence statement. When Bill Whitaker pressed for more information, she stood firm with her initial response.

On Sunday morning, the CBS program titled “Face the Nation” broadcast a rather complicated opening statement from her. Subsequently, during the next evening’s airing, “60 Minutes” presented the second part of her response, which was clear and direct.

Trump and his supporters cried foul, pointing to the discrepancies.

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Trump uses his Truth Social platform to express criticism towards the persistent portrayal by ’60 Minutes’, even as he pursues a lawsuit against the show.

A week prior to the election, Trump’s legal action against CBS took place in Amarillo, Texas, intensifying the climax of events. He claimed that CBS was attempting to conceal Harris’s confused speech, also known as “word salad,” with the aim of influencing the outcome of a closely contested election.

Trump won decisively, and CBS sought to have the case dismissed.

The legal team asserted that their journalists were shielded under the First Amendment. Furthermore, they contended that the trial should be transferred from western Texas, presided over by a judge appointed by former President Trump. Their intention was to relocate the case to a New York court, where CBS and “60 Minutes” operate.

During the mentioned interview, there was no discussion about Texas. In February, Trump included U.S. Representative Ronny Jackson, his former physician, in the lawsuit as an extra claimant. Notably, Jackson resides in Texas.

Tuesday night’s settlement stipulated that Jackson would not receive any money.

Previously this year, a Texas court mandated both parties to bring their disputes before a neutral third party for mediation. A former judge specializing in intricate lawsuits started listening to the case from April 30 onwards.

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Paramount is working on finalizing an agreement to broadcast ‘South Park,’ but the deal isn’t done yet because the Skydance deal is currently stuck.

The controversy stabbed at the heart of CBS News and its legacy of fearless broadcast journalism.

Producers at CBS News have consistently asserted that they were not in the wrong. Journalists declined to endorse an apology, a move previously perceived as a crucial requirement by Trump and his associates.

Inside the company, a pitched battle raged for months.

By the end of April, Bill Owens, the executive producer of “60 Minutes,” decided to step down. This event led Scott Pelley, a veteran CBS newsman, to disclose to viewers that the show had been under more corporate scrutiny due to Paramount’s efforts to secure approval from the Trump administration for the Skydance deal.

Pelley informed viewers that none of our tales have been censored. However, Bill felt he had lost the autonomy essential for authentic journalism.

Some corporate executives were furious over Pelley’s public statements, insiders have said.

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Under Carr’s leadership at the communications agency, there have been renewed allegations of news bias and investigations into diversity policies at Comcast and Disney. Recently, he criticized NBC’s handling of the Kilmar Abrego Garcia controversy this month.

In the context of events that unfolded, I found myself resigning from my position as President of CBS News and Stations, Wendy McMahon, in May, due to a disagreement with certain decisions made by the higher-ups, particularly those related to Donald Trump.

Additionally, there were other issues of contention. Redstone, holding a dual role as chairman of the Paramount board, had also voiced displeasure over CBS News’ reporting on the Israel-Hamas conflict.

Fallout from the settlement could prompt additional headaches.

Three Democratic U.S. senators cautioned Redstone that Paramount might be accused of bribery if they made a large payment to appease Trump, which could potentially expedite the FCC’s assessment of the Skydance deal.

According to a report from The Wall Street Journal, Paramount proposed a payment of $15 million to Trump to settle the legal dispute, but he chose not to accept it.

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This week, Trump and the parent company of CBS, Paramount Global, have opted for mediation in an effort to move past the legal dispute and the contentious ’60 Minutes’ issue. Both parties appear keen on resolving these matters.

Unexpectedly, securing FCC approval for Skydance to acquire CBS licenses turned out to be a challenging hurdle.

At the beginning of this year, FCC Commissioner Carr initiated an investigation regarding whether the modifications made by “60 Minutes” could be considered as displaying “news bias”. Notably, the FCC has historically recognized that it holds limited power to intervene over claims about the accuracy or bias of journalists and news broadcasters.

According to statements made on their website by the FCC, they are legally bound not to censor content or violate freedom of speech as guaranteed by the First Amendment for the media. This protection encompasses, but is not limited to, a broadcaster’s ability to choose and present news or commentary in any manner they see fit.

Carr ordered CBS to release the raw footage.

The uncensored video interview supports the network’s version of events. However, it also disclosed that a clear and concise part of Harris’ muddled response was extracted for the final broadcast.

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President Trump launched a legal action claiming CBS manipulated his interview with Kamala Harris by editing it misleadingly, amounting to $10 billion in damages. In response to giving the material to the Federal Communications Commission (FCC), CBS made the transcripts and footage available to the public.

It’s concerning when a news organization decides to settle a lawsuit that they could likely win, as stated by RonNell Andersen Jones, a First Amendment expert and law professor at the University of Utah in an earlier interview. This action implies giving up ground protected by the First Amendment that didn’t necessarily have to be relinquished.

In a move to avoid potential conflict with the president or a messy legal battle, Paramount is opting for a settlement instead.

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For Subscribers

Shari Redstone was poised to make Paramount a Hollywood comeback story. What happened?

Instead, Redstone’s leadership over Paramount has been marked more by errors and disappointments rather than helping it regain its position among leading industry giants.

In December, The Walt Disney Company’s ABC News resolved a lawsuit filed by Donald Trump. As part of the settlement, they agreed to cover $1 million in legal costs and contribute an additional $15 million towards Trump’s future presidential library.

During a live broadcast, I affirmed that a court jury had decided Trump was accountable for a form of sexual misconduct, specifically referred to as “sexual abuse,” in a legal matter, not rape as initially stated.

Certain media sources, such as the Associated Press, have strongly advocated for their journalists’ right to report on the president effectively.

Gannett’s Des Moines Register and independent pollster J. Ann Selzer faced off against Donald Trump’s legal objections to an Iowa poll that appeared to overemphasize Kamala Harris’s backing. The survey was released mere days before the election, implying that Harris might be in front in the Hawkeye State, but she ultimately lost decisively.

This week, Trump and his fellow plaintiffs moved to have their federal case dismissed.

The president adjusted his statements, filing a fresh lawsuit in a state court, arguing that the release of the poll was actually election interference and a breach of Iowa’s Consumer Fraud Act.

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A bold president and his supporters are aggressively pushing for the use of governmental tools to exert pressure on a growing divided and contentious media, according to experts.

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2025-07-02 07:31

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