Unlock the White House Watch newsletter for free
Your guide to what Trump’s second term means for Washington, business and the world
Donald Trump’s media regulator is currently engaged in discussions with Paramount regarding concessions that the studio must make in order to obtain approval for its $8 billion merger with Skydance, as reported by sources familiar with the situation. The negotiations between Brendan Carr, the US Federal Communications Commission chair, and Paramount are taking place amidst a legal battle between the production company and Trump over CBS, its flagship news broadcaster.
Trump has filed a $20 billion lawsuit against CBS, alleging defamation and deceptive editing of an interview with Kamala Harris, his opponent in the previous White House race. Paramount, which owns both the film studio and CBS News, is considering settling the lawsuit with Trump in an effort to move forward with its merger with Skydance. This move has caused turmoil within the CBS newsroom, leading to the resignation of the 60 Minutes executive producer.
The situation highlights the unprecedented power wielded by Trump’s White House over corporate America, with companies facing the choice of complying with the administration’s demands or risking retribution in the form of blocked deals and lawsuits. Paramount’s efforts to appease Trump have raised concerns among CBS employees, with allegations of interference in editorial decisions.
Carr, the FCC chair appointed by Trump, has been critical of the Paramount-Skydance deal and has delayed its approval. He has emphasized the importance of ending diversity, equity, and inclusion programs for companies seeking FCC approval, a stance that has raised eyebrows in the industry. Paramount is currently in talks with Carr to explore various options, including committing to refrain from implementing DEI policies in the future.
In addition to Paramount, Carr has also targeted other media groups such as Disney and Comcast, warning of potential investigations into their diversity initiatives. Disney, which owns ABC News, recently settled a defamation lawsuit with Trump after anchor George Stephanopoulos made false statements about the former president on-air. The settlement involved a payment of $15 million to Trump’s presidential library.
The ongoing negotiations and legal battles between Trump, Paramount, and other media companies underscore the complex relationship between the government and the media industry. As the situation continues to unfold, the outcome of these disputes could have far-reaching implications for the media landscape and the regulation of corporate mergers. Stay tuned for the latest updates on this developing story.
