Skip to content
All about business. — All about finance.

Trump's Lawsuit against Paramount Settled for $16 Million

In the agreement reached, CBS maintained their stance on the editing approach used in the '60 Minutes' interview with Kamala Harris during her presidential run.

,   and  Administrator
3 min read
Paramount Pays Trump $16 Million in Settlement Lawsuit
Paramount Pays Trump $16 Million in Settlement Lawsuit

Trump's Lawsuit against Paramount Settled for $16 Million

The long-awaited Paramount-Skydance Media merger, valued at over $8 billion, is edging closer to approval following a recent settlement in a lawsuit filed by former U.S. President Donald Trump. The lawsuit, which alleged CBS News' actions were partisan and unlawful acts of election and voter interference, has now been settled for $16 million.

The settlement, which clears a significant legal hurdle for the merger, is seen as a key step toward allowing the deal to move forward. The legal dispute had been causing uncertainty and delays in the regulatory approval process. Paramount's controlling shareholder, Shari Redstone, played a pivotal role in opting for the settlement to facilitate the sale.

However, the Federal Communications Commission (FCC) still needs to approve the merger. Paramount emphasizes that the settlement is "completely separate from, and unrelated to, the Skydance transaction and the FCC approval process." FCC chairman Brendan Carr has maintained that the settlement and merger review are distinct matters.

Industry observers speculate that settling the lawsuit may indirectly smooth the path for regulatory approval. The FCC typically acts within about 180 days, but there is no strict deadline forcing a decision, and the regulatory review has already triggered extensions pushing the closing deadline to October 6, 2025.

The merger could bolster CBS Sports' operations, potentially leveraging Skydance's capital to aggressively pursue live sports rights acquisitions, impacting the broader sports media landscape.

In the lawsuit, it was claimed that CBS News' actions were aimed at tipping the scales in favor of the Democratic Party and that the network deceptively edited an interview with Trump's 2024 election foe, former Vice President Kamala Harris. However, no apology was part of the settlement agreement, and the lawsuit initially sought $10 billion in damages, later raised to $20 million.

Critics suggest that Trump used the FCC's investigation and "news distortion" complaint as leverage to pressure Paramount for a settlement. The settlement money will be directed towards Trump's presidential library.

Despite the FCC's denial of any connection between the suit and the merger approval process, the settlement of the lawsuit could clear the way for Federal Communications Commission approval of the Paramount-Skydance Media merger.

Signing up for the TV Tech Newsletter is available for those interested in staying updated on the progress of the merger and other industry news.

| Aspect | Details | |--------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------| | Lawsuit | Trump administration sued Paramount over CBS editing Kamala Harris interview; lawsuit settled for $16 million | | Impact on Merger | Settlement clears a major obstacle, enabling regulatory review to move forward | | FCC Approval | Still required for the merger; FCC chair stresses separation between lawsuit settlement and merger approval process | | Timeline | Merger closing deadline extended to October 6, 2025; no strict forcing deadline | | Corporate Governance | Paramount board expanding to assist settlement and merger approval | | Potential Business Impact | Skydance's entry could enhance CBS Sports' live sports rights acquisitions | | Initial Damages Claim | The lawsuit initially sought $10 billion in damages, later raised to $20 million | | No Apology | No apology was part of the settlement agreement | | FCC Investigation Leverage | Critics suggest Trump used the FCC's investigation and "news distortion" complaint as leverage to pressure Paramount for a settlement | | Settlement Money Destination | The settlement money will be directed towards Trump's presidential library | | Alleged CBS Actions | The lawsuit accused CBS News of malicious, deceptive, and substantial news distortion |

  1. The settlement, worth $16 million, resolves a lawsuit filed by former U.S. President Donald Trump, clearing a significant legal hurdle for the Paramount-Skydance Media merger.
  2. The Federal Communications Commission (FCC) still needs to approve the $8 billion merger, although FCC chair Brendan Carr maintains that the settlement and merger review are distinct matters.
  3. Industry observers speculate that settling the lawsuit may indirectly smooth the path for regulatory approval of the Paramount-Skydance Media merger.
  4. The merger could strengthen CBS Sports' operations by leveraging Skydance's capital for live sports rights acquisitions, potentially impacting the broader sports media landscape.
  5. The lawsuit accused CBS News of malicious, deceptive, and substantial news distortion in an interview with Trump's 2024 election foe, former Vice President Kamala Harris, but no apology was part of the settlement agreement.
  6. Critics suggest that Trump used the FCC's investigation and "news distortion" complaint as leverage to pressure Paramount for a settlement, and the settlement money will be directed towards Trump's presidential library.

Read also:

    Related

    Latest