Clearance granted for Paramount to change hands by US authorities.
In a surprising turn of events, the sale of entertainment conglomerate Paramount has received the green light from Washington. However, the road to this approval was not smooth, as the sale unexpectedly became politicized.
The catalyst for this political storm was former President Donald Trump's high-profile legal battle against Paramount. The dispute arose from a CBS News '60 Minutes' interview with Vice President Kamala Harris, which Trump alleged was manipulated to favor Harris. He demanded an exorbitant settlement of $20 billion in damages, a demand that put Paramount in a crisis.
The company faced intense internal and external pressures, including a revolt from journalists and pressure on the board. All these factors threatened to derail the company's $8 billion sale to Skydance Media, led by David Ellison.
The politicization intensified when CBS aired another critical '60 Minutes' segment on Trump, escalating tensions and leading Trump to threaten additional lawsuits alleging defamation.
To resolve this and secure government approval for the sale, Paramount agreed to pay Trump a settlement of $16 million, just 10 hours before the board vote on the sale.
Reports suggest that the resolution included non-monetary elements intended to appease Trump, such as anticipated future airing of free commercials or public service announcements supporting Trump-backed causes. However, Paramount has denied this characterization.
With the settlement in place, the Paramount board approved the sale to Skydance Media, and the deal received the necessary approval from Washington. The $8 billion transaction can now move forward, marking the end of a tumultuous chapter in Paramount's history.
The high-profile legal battle between former President Donald Trump and entertainment conglomerate Paramount, sparked by Trump's allegations of influenced interview with Vice President Kamala Harris, led to a politicization of Paramount's business affairs. This dispute, with Trump demand for a $20 billion settlement, caused a crisis within Paramount, intensifying with the airing of a critical '60 Minutes' segment on Trump and subsequent threats of defamation lawsuits. To secure government approval for the sale to Skydance Media, Paramount agreed to pay Trump a settlement of $16 million, just before the board vote, a move that reportedly included non-monetary elements to appease Trump.
