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Why Paramount’s efforts to settle Trump’s lawsuit has drawn mounting political heat

BBG News

In simpler terms, as Paramount Global strives to gain President Trump’s approval for their proposed sale, they could face significant costs that extend beyond just money. The potential legal issues and political complications are escalating, impacting not only Washington D.C., but also Sacramento.

Three U.S. senators have cautioned Shari Redstone, Paramount’s main shareholder, and other executives that potentially compensating Donald Trump to dismiss his $20-billion lawsuit stemming from an October “60 Minutes” interview with Vice President Kamala Harris might be perceived as a bribing act.

Last week, the focus broadened as two California Democratic senators suggested a state Senate investigation, aiming to delve into the prolonged turmoil at the media company. They extended invitations for two ex-CBS News executives, who had resigned primarily due to this controversy, to appear before a combined committee hearing in Sacramento. This is intended to assist lawmakers in scrutinizing potential issues related to a Trump settlement.

In a recent conversation, Senator Josh Becker (D-Menlo Park) expressed his surprise at the unprecedented behavior shown by a president. He voiced worries about a potential dampening impact any settlement could have on investigative and political journalism. Additionally, he suggested that such an action might imply that lawsuits driven by political motives can be victorious, particularly when accompanied by regulatory threats.

Resolving the Trump lawsuit is generally viewed as an essential step before authorities can officially approve Paramount’s $8-billion acquisition by Skydance Media. This deal is crucial for Redstone, who eagerly awaits it as a means to preserve her family’s wealth.

Trump argues that CBS manipulated the “60 Minutes” interview to make Harris more appealing for the 2024 presidential election, an election she ultimately lost. It’s said he turned down a $15-million offer from Paramount to resolve his lawsuit, which some First Amendment experts consider baseless.

Scott L. Cummings, a law school professor specializing in legal ethics at UCLA, stated that this case is particularly significant. He noted that legislators are expressing concerns about it.

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Trump, ‘60 Minutes’ and corruption allegations put Paramount on edge with sale less certain

Three Democratic senators have expressed concern that making a payment to Trump in exchange for beneficial treatment from regulators might breach federal anti-corruption laws. They stated that the interactions between Paramount and Trump suggest troubling indications of potential corruption and unethical practices.

However, it remains uncertain if either federal or state politicians could prevent a potential Trump settlement. Experts have warned that establishing proof of bribery on the part of Paramount’s leadership, should a settlement be reached, might pose challenges.

Previously, Congress has debated these distinctions. In February 2020, the U.S. Senate cleared Donald Trump of impeachment charges following a vote by the House, which had accused him of withholding approximately $400 million in aid to pressure Ukraine into investigating former President Joe Biden and his son Hunter. This year, several prominent universities and law firms have made substantial compromises towards the administration to create some leeway for themselves.

Cummings stated that we need more evidence since bribery involves a trade for something, but Trump and his associates are cautious about directly linking the two. However, it’s clear that there’s a connection, isn’t it? This is the legal conundrum.

Even if it were possible to demonstrate that a Paramount payoff was a form of bribery, it’s uncertain who would take legal action against such a case.

It’s not surprising that accusations of bribery aren’t being looked into by the FBI or other departments under Trump’s control within the U.S. Department of Justice. Additionally, congressional Republicans appear to be under Trump’s influence, and the Federal Communications Commission is headed by a Trump appointee, Brendan Carr. In one of his initial actions as chairman, Carr launched a public inquiry to determine if the edits made by “60 Minutes” amounted to news distortion.

It may fall to state prosecutors to dig into the issue, Cummings said.

That hasn’t stopped nationally prominent progressive lawmakers from sounding alarms.

Senators Elizabeth Warren (D-MA), Bernie Sanders (I-VT) and Ron Wyden (D-OR) are requesting that Paramount disclose details about any negotiations or compromises made in relation to a potential agreement with the Trump administration, specifically if news broadcasts were altered.

In a letter dated May 19, the lawmakers clearly stated that it is unlawful to offer anything valuable to public officials with the intention of influencing their official decisions. If any representatives from Paramount do this, specifically to sway President Trump, they could potentially be violating the law.

Based on Warren’s office statement, neither Redstone nor Paramount provided answers to the senators’ questions by the specified deadline.

Paramount and a Redstone spokesperson declined to comment.

Lawmakers frequently show curiosity towards major media acquisitions, and Skydance’s proposed buyout of a renowned Hollywood movie studio and trailblazing broadcaster CBS could potentially reshape the industry. However, this time, the attention is not primarily on scrutinizing the Ellison family or the specifics of the deal, but rather on investigating whether Trump is misusing his power inappropriately.

Trump is pushing for a substantial financial settlement from Paramount to resolve his ongoing legal dispute. Moreover, he’s advocated for the revocation of CBS’s broadcasting licenses, an area regulated by the Federal Communications Commission (FCC).

Over the past month or so, lawyers from Paramount and Trump have been engaged in mediation meetings, but they haven’t managed to find a solution yet.

According to the Wall Street Journal, Paramount initially proposed a sum of $15 million, but Trump declined this offer. Instead, it was stated that he requested at least $25 million in cold hard cash, along with another $25 million worth of free advertisements to promote his preferred causes. Additionally, he reportedly asked for an apology as well.

Executives at CBS News draw a firm boundary on this matter, asserting they’ve done no wrong, as reported by sources inside the organization who are not permitted to speak publicly about these confidential discussions.

Paramount’s leaders have clashed over settlement efforts, according to the sources.

Senators Becker and Thomas J. Umberg (D-Santa Ana) from California are optimistic that these divisions might offer a chance or opportunity.

Toward the end of the previous week, they extended invitations to Wendy McMahon, who was once CBS News and Stations President, and Bill Owens, a former executive producer of “60 Minutes,” to appear as witnesses at an upcoming, as-of-yet unannounced oversight hearing in Sacramento.

Last month, McMahon stepped down from CBS amidst criticism over her leadership choices, such as her opposition to the Trump agreement, according to reports.

Owens resigned in April, citing a loss of editorial independence.

Becker and Umberg have written to you as potential allies who can aid our committees in determining if any undue influence is being applied within the media sector, potentially jeopardizing public faith and fair competition. Becker serves as chairman of the Senate Energy, Utilities & Communications Committee, while Umberg leads the Senate Judiciary Committee.

California holds a significant stake in the situation since Paramount is actively conducting business within the state, with a substantial presence particularly in Los Angeles, as stated by Becker to The Times.

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Trump, ‘60 Minutes’ and corruption allegations put Paramount on edge with sale less certain

Three Democratic senators expressed concern that making any payment to Trump in exchange for preferential treatment from regulators might breach federal anti-corruption rules. They stated that the transactions between Paramount and Trump suggest significant questions about potential corruption and unethical behavior.

The debate about the changes started in October when CBS broadcast diverse sections of Kamala Harris’ response during a “60 Minutes” interview that took place a month before the election. Producers for the talk show “Face the Nation” utilized a clip featuring an intricate answer from Harris, while the next day, the most powerful part of her response was shown on “60 Minutes,” causing conservatives to accuse them of bias.

Trump filed a federal lawsuit in Texas just before the election, accusing CBS of manipulating an interview with Harris to improve her chances of winning, which CBS denies. After returning to the White House, Trump increased the amount he wanted in damages from what was originally asked to $20 billion. His team argues that he experienced emotional distress because of the interview.

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‘60 Minutes,’ the Associated Press, an Iowa newspaper: Trump’s attacks on the media reach new heights

A bold president and his supporters are aggressively pushing for ways to exert governmental power to pressure a more divided and contentious media, according to experts.

CBS has requested that the Texas judge, who was appointed by President Trump, throw out the lawsuit, claiming that the changes made were standard procedure.

Ever since, the FCC’s evaluation of Paramount’s deal with Skydance has encountered delays. However, they require Chairman Carr’s endorsement before they can transfer CBS television station licenses over to the Ellison family.

Paramount is handling the potential settlement for the Skydance merger and the FCC’s review as two distinct issues.

Experts doubt Trump sees such a distinction.

According to Cummings, it appears that Trump and his associates are leveraging government procedures to establish discussions, which seem to benefit Trump on a personal level in a way that sparks suspicions about corruption.

Paramount’s decision could open the company to shareholder complaints.

The Trump vs. CBS “60 Minutes” lawsuit has sparked widespread controversy due to being perceived as extremely baseless or unfounded, according to Seth Stern, advocacy director for the Freedom of the Press Foundation, who own Paramount shares and have threatened legal action if the company complies with Trump’s demands.

“This is so transparently an abuse of power — a shakedown,” Stern said.

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Ever since the announcement that Shari Redstone’s company agreed to sell to Skydance Media, owned by tech heir David Ellison, last July, it has faced a string of challenges.

According to analyst Richard Greenfield from LightShed Partners, it appears that Trump’s objective might extend beyond the roughly $49 million he is said to have requested.

A more straightforward rephrasing would be: “Greenfield posited in a recent blog post whether there is any amount Trump might accept to end the CBS/60 Minutes legal dispute. If Trump aims to undermine media and instill constant apprehension about lawsuits that may harm business deals, prolonging this lawsuit could serve his interests as President.

UCLA’s Cummings sees another deleterious outcome.

A settlement might bolster Trump’s claim that certain media outlets are corrupt, as he could argue, “I was right all along, they admitted wrongdoing by agreeing to pay this sum.

“Even though they would be paying to get this deal through,” Cummings said.

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2025-06-05 22:02

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