Lawsuit settlement: Paramount to pay out $16 million to Trump
In an unexpected turn of events, Paramount's decision to settle a lawsuit with U.S. President Donald Trump for $16 million has sparked a wave of controversy and allegations of potential violations of federal anti-corruption laws. The merger between Paramount and Skydance Media, announced in 2024, is now under scrutiny as critics argue that the settlement could constitute an illegal bribe intended to secure regulatory approval for the deal.
The senators who wrote the letter were Bernie Sanders, Elizabeth Warren, and Ron Wyden. In a letter dated May 20, they expressed concerns that Paramount could engage in questionable practices with the Trump government in exchange for approval of the merger. They warned that paying Trump to aid in winning merger clearance could be illegal under federal anti-bribery statutes, as it is unlawful to corruptly give anything of value to public officials to influence official acts.
Prominent lawyers Abbe Lowell and Norm Eisen also voiced their concerns in a separate letter to Paramount. They warned that approving a settlement to gain favour at the Federal Communications Commission (FCC) could violate fiduciary duties and federal anti-bribery laws, potentially causing severe damage to Paramount and its shareholders.
California lawmakers have also raised concerns that the settlement might violate California's Unfair Competition Law, potentially harming the fairness of the media market. There is talk of a possible state Senate hearing to investigate this settlement, including testimonies from former CBS News executives who left amid the controversy.
While no formal legal violation has been confirmed, the timing and purpose of the settlement in relation to the merger approval have sparked accusations of extortion and bribery from various political and legal observers. The agreement does not involve a direct payment to Trump but allocates funds to his future presidential library and plaintiffs’ legal fees.
The lawsuit was over the editing of a '60 Minutes' CBS interview with then-Vice President Kamala Harris. Donald Trump's lawyer claimed that his client suffered "mental anguish" due to the editing of the interview. In early February, '60 Minutes' released a complete, unedited transcript of Harris' interview. Paramount accepted that the transcripts of future presidential candidate interviews would be released, subject to edits for legal and national security reasons.
The deadline for a final decision by the FCC on the deal is July 7. If the agreement is not finalized by then, Paramount may opt for a second 90-day extension. The merger aims to compete with major transmission operators. The settlement amount, equivalent to €13.6 million, will go to Trump's future presidential library, not to Trump himself.
The case led to the dismissal of '60 Minutes' producer, Bill Owens, and later to the dismissal of CBS News director Wendy McMahon. The controversy has cast a shadow over the merger process, with ongoing discussions and investigations into the potential violation of federal anti-corruption laws by Paramount.
- The senators Bernie Sanders, Elizabeth Warren, and Ron Wyden have written a letter expressing concerns that Paramount may engage in questionable practices with the Trump government in exchange for approval of the merger with Skydance Media.
- Prominent lawyers Abbe Lowell and Norm Eisen have also voiced their concerns, warning that approving a settlement to gain favor at the Federal Communications Commission could violate fiduciary duties and federal anti-bribery laws.
- California lawmakers have raised concerns that the settlement might violate California's Unfair Competition Law, potentially harming the fairness of the media market, and there is talk of a possible state Senate hearing to investigate this matter.
