In a high-stakes legal drama, Paramount Global is reportedly offering U.S. President Donald Trump a substantial eight-figure settlement to resolve a $20 billion lawsuit that threatens to derail its $8 billion merger with Skydance Media.
The lawsuit, filed by Trump in October 2024, centers on allegations that CBS News’ flagship program 60 Minutes deceptively edited a pre-election interview with then-Vice President Kamala Harris to portray her more favorably, an act Trump claims constituted “election interference” and violated Texas’ Deceptive Trade Practices Act.
While the lawsuit has been widely dismissed as meritless by legal experts, Paramount’s eagerness to settle highlights the delicate balance between corporate interests and political pressures in Trump’s second term.
The controversy stems from a 60 Minutes interview aired in October 2024, during the heated final stretch of the presidential election. Trump’s legal team argued that CBS edited Harris’ responses, particularly on U.S.-Israel relations, to make her appear more coherent, thereby harming Trump’s campaign.
The lawsuit, originally seeking $10 billion and later doubled to $20 billion, has been criticized as a publicity stunt with little legal grounding, given that editorial decisions like interview editing are protected under the First Amendment.
CBS has maintained that the interview was not doctored and that the edits were made solely to fit broadcast time constraints, a standard practice in television journalism.
Despite the lawsuit’s questionable merits, Paramount’s board is reportedly prepared to offer a settlement, with figures ranging from $15 million to as high as $30–50 million, according to sources close to the negotiations. Trump’s team, however, has rejected the $15 million offer, demanding at least $25 million and a public apology from CBS News.
This follows a pattern seen in a recent settlement where Disney paid Trump $15 million to resolve a defamation lawsuit over an ABC News segment in which anchor George Stephanopoulos inaccurately stated Trump was found liable for rape.
The settlement talks are driven by Paramount’s urgent need to secure Federal Communications Commission (FCC) approval for its merger with Skydance Media, a deal backed by tech billionaire Larry Ellison and led by his son, David Ellison. The merger, which would transfer control of Paramount from Shari Redstone’s family to Skydance, requires the transfer of CBS’s broadcast licenses, a process overseen by the FCC under Trump-appointed Chairman Brendan Carr.
While Carr has publicly stated that the lawsuit and the merger review are separate, his earlier comments suggested that complaints about the 60 Minutes interview could factor into the FCC’s deliberations, raising concerns about potential regulatory retaliation.
Critics, including Democratic senators like Elizabeth Warren and Bernie Sanders, have sounded alarms over the settlement talks, warning that any payment to Trump could violate federal anti-bribery laws and constitute a “thinly veiled” attempt to secure favorable regulatory treatment. The Freedom of the Press Foundation has also threatened to sue Paramount if it settles, arguing that such a move would damage CBS News’ reputation and embolden further attacks on press freedom.
Inside CBS, the prospect of a settlement has sparked significant unrest.
The resignation of 60 Minutes executive producer Bill Owens and CBS News president Wendy McMahon, both vocal opponents of settling, underscores the internal divisions.
Correspondent Scott Pelley publicly criticized Paramount’s corporate oversight during an April 2025 broadcast, noting that the company’s push for the Skydance merger had led to unprecedented supervision of 60 Minutes’ content. “None of our stories has been blocked, but Bill felt he lost the independence that honest journalism requires,” Pelley told viewers.
The situation has drawn sharp commentary from media observers. Deadline has labeled Paramount’s offer a “bribe” and accused Trump of “extortion,” framing the settlement as a capitulation to political pressure.
Late-night hosts like Stephen Colbert have mocked the situation, while CNN’s Jake Tapper has openly criticized Shari Redstone, Paramount’s controlling shareholder, for prioritizing financial gain over journalistic integrity.
Redstone, who stands to gain billions from the Skydance deal, has reportedly recused herself from final settlement decisions but remains a strong advocate for resolving the dispute to ensure the merger’s success.
This saga reflects a broader trend in Trump’s second term, where media companies face increasing pressure to settle disputes to avoid regulatory or political repercussions.
The $15 million Disney settlement and a $25 million payout from Meta to Trump’s foundation for a separate lawsuit suggest a growing willingness among corporate giants to acquiesce to the president’s demands.
As Paramount navigates this precarious situation, the outcome could set a precedent for how media companies balance editorial independence with business imperatives in an era of heightened political influence.
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For now, settlement talks remain ongoing, with mediation sessions underway. Whether Paramount will meet Trump’s demands or risk further delays to the Skydance merger remains uncertain, but the stakes — for both the company and the future of press freedom—are undeniably high.
