California Senators Call for Hearing on Paramount Global Settlement Talks with President Trump
Two California state senators, Tom Umberg and Josh Becker, have taken a stand against the settlement talks between Paramount Global and President Trump. They believe that such a deal could be viewed as a bribe in exchange for regulatory approval for the studio’s merger with Skydance Media.
In a letter sent recently, Umberg and Becker expressed concerns that a settlement could potentially violate state and federal laws. They also raised the issue of the impact such a deal could have on investigative and political journalism, referring to it as a “chilling effect.” The senators have invited Wendy McMahon and Bill Owens, former top CBS News executives who have resigned in recent weeks, to testify in the hearing.
The inquiry initiated by the senators aims to ensure that media enterprises compete based on content and quality rather than influence, capitulation, or political appeasement. The letter was initially reported by Semafor, shedding light on the ongoing investigation.
The legal battle between Trump and CBS, where Trump sued the network for $10 billion last October, adds another layer of complexity to the situation. CBS has been accused of consumer fraud for allegedly editing out a portion of a “60 Minutes” interview with Kamala Harris. Paramount’s controlling shareholder, Shari Redstone, reportedly pushed for a settlement to expedite the pending $8 billion Skydance merger, even though Trump later amended the lawsuit to seek $20 billion in damages.
Recent reports from The Wall Street Journal suggest that Paramount is willing to pay up to $15 million to settle the lawsuit, but Trump is holding out for a higher amount. This has raised concerns among Democratic U.S. senators Elizabeth Warren, Ron Wyden, and Bernie Sanders, who have warned about the potential violation of federal bribery laws.
Umberg, a former federal prosecutor, and Becker, both Democrats, argue that a settlement would also run afoul of California’s unfair competition law and could expose board members to shareholder lawsuits. They emphasized the importance of upholding a free press and an impartial regulatory system in a liberal democracy.
The resignations of Owens and McMahon, who cited interference from Paramount in their decisions to step down, add to the complexity of the situation. The senators have invited them to testify as “friendly witnesses” to provide insights into the settlement talks and pushback from the news division.
Ethics experts have pointed out the difficulty of proving a bribery charge in court, particularly in demonstrating an explicit quid pro quo. However, the senators remain steadfast in their commitment to investigating the matter and upholding the principles of transparency and accountability in media and regulatory affairs.
