Paramount Global has chosen to settle a lawsuit with President Donald Trump by paying him $16 million, rather than engage in a lengthy legal battle. The lawsuit was filed against CBS’s “60 Minutes” for allegedly deceptively editing an interview with Kamala Harris and misleading U.S. voters. As part of the settlement, Paramount will also release all claims regarding any CBS reporting up to the date of the settlement, including a threatened defamation action and a Texas action. This settlement comes as Paramount is awaiting final U.S. regulatory approval for its merger with Skydance Media.
In a statement, Paramount clarified that none of the settlement money would be paid directly to President Trump or Rep. Jackson, but instead would go towards Trump’s presidential library. Additionally, Paramount agreed that in the future, “60 Minutes” will release transcripts of interviews with eligible U.S. presidential candidates after they have aired, with necessary redactions for legal or national security concerns.
The settlement does not include an apology or regret from Paramount, but rather a resolution to put an end to the matter quickly. Sources suggest that the desire to settle was driven by Shari Redstone, Paramount’s controlling shareholder, ahead of the company’s annual shareholder meeting in July.
This settlement marks the second major payout by a news organization to President Trump, following Disney and ABC News’s $15 million settlement in a defamation lawsuit. The settlement with Paramount is expected to have repercussions within CBS News and “60 Minutes,” and could potentially embolden Trump to pursue further litigation against media outlets he disagrees with.
In a separate case, President Trump has refiled a lawsuit against the Des Moines Register and pollster Ann Selzer in Iowa state court, alleging consumer fraud over a poll showing him trailing Harris in Iowa. The Des Moines Register has stated that they will continue to defend their rights under the First Amendment.
Despite concerns raised by U.S. senators about the settlement being seen as a bribe, it is unlikely that the Justice Department will pursue charges of bribery against Paramount. Trump initially filed the lawsuit days before the 2024 presidential election, claiming that the edit in the “60 Minutes” interview with Harris was a violation of Texas consumer protection laws.
Prior to the settlement, Paramount and CBS maintained their innocence, arguing that they had done nothing wrong. Paramount called the lawsuit an affront to the First Amendment, while CBS News stated that the broadcast and promotion of the Harris interview were not doctored or deceitful.
The $16 million settlement comes as Paramount’s $8 billion merger with Skydance is pending FCC approval. Skydance, Larry Ellison, and RedBird Capital have finalized a deal to purchase the shares of Redstone’s NAI, which holds 77% of the voting power in Paramount Global. This acquisition will pave the way for Skydance to merge with Paramount, creating a new entity called “Paramount Skydance Corp.” As part of the agreement, Redstone is set to receive $1.75 billion in cash upon the completion of the deal.
The approval of the Paramount-Skydance merger by the FCC, under the leadership of Trump-appointed chairman Brendan Carr, has been a topic of discussion. Carr has emphasized that the approval process is independent of the legal issues surrounding Trump’s lawsuit against CBS for alleged news distortion in the “60 Minutes” interview with Vice President Kamala Harris. Paramount Global has also clarified that the lawsuit is separate from the merger and FCC approval process.
During a press briefing at the White House, Trump refrained from addressing the delays in approving the Skydance-Paramount deal directly. Instead, he shifted the conversation to his ongoing legal battle with CBS over the “60 Minutes” interview. Despite the legal turmoil, Trump expressed confidence in David Ellison’s leadership at the helm of the newly formed Paramount Skydance Corp.
The fallout from Trump’s lawsuit has had significant repercussions within CBS News and Paramount. The resignations of CBS News president Wendy McMahon and “60 Minutes” executive producer Bill Owens have been attributed to conflicts arising from the legal dispute with Trump. Redstone had previously urged Paramount’s board to seek a resolution to the lawsuit, including exploring mediation options.
In response to Trump’s claims of deceptive editing in the “60 Minutes” interview, CBS News released an unedited transcript of the interview with Vice President Harris. The materials provided by CBS demonstrated that the broadcast was not altered or deceitful, contrary to Trump’s allegations. The lawsuit focused on a specific exchange between Harris and correspondent Bill Whitaker regarding US-Israel relations.
The edited versions of the interview broadcast on “Face the Nation” and “60 Minutes” were compared to the unedited transcript to address the allegations of misrepresentation. The discrepancies in the edited segments were scrutinized in relation to the original conversation between Harris and Whitaker. Despite the controversy surrounding the interview, CBS stood by the integrity of their reporting.
As the Paramount-Skydance merger moves forward, the legal battles and controversies surrounding the deal continue to be closely monitored. The transition to Paramount Skydance Corp marks a new chapter for both companies, with the potential for growth and innovation in the entertainment industry.
