Paramount settles Trump lawsuit, clearing way for Skydance merger
Paramount settles Trump lawsuit, clearing way for Skydance merger
It has been a tumultuous 18 months, but the last major hurdle appears to be clear for Skydance to take control of Paramount.
With one decision, it appears that two of the biggest stories in broadcasting might have finally been resolved. Paramount Global has officially reached a settlement with President Donald Trump over his lawsuit against CBS and its long-running news magazine “60 Minutes.” The company will reportedly pay the president $16 million. The conclusion to the suit is believed to be the next step in finally obtaining regulatory approval of Paramount’s long-gestating merger with Skydance Media.
Key Details:
- The bottom line: Paramount has settled President Trump’s lawsuit for $16 million.
- Small victories: However, the settlement did not include an apology or admission of wrongdoing.
- One last step: This is believed to be the final step necessary before the FCC finally approves Paramount’s merger with Skydance Media.
Trump initially sued CBS News and Paramount Global for $20 billion over what he believed was the unfair editing of an interview with then-Vice President Kamala Harris during last fall’s presidential campaign. While Paramount has agreed to pay the president $16 million, the settlement does not include any sort of apology or acknowledgement of wrongdoing on CBS’s part. However, the network has said that in the future, it will publish full transcripts of interviews with presidential candidates following the airing of those interviews.
With this matter officially settled, many analysts believe that it clears the way for the FCC to move forward on the Paramount Global and Skydance Media merger. While FCC chair Brendan Carr has said in the past that the lawsuit and the regulatory process are unrelated, some onlookers disagree. Some lawmakers and industry experts believe that settling the lawsuit could constitute bribery, as Paramount is exchanging money for a favorable regulatory decision from the Trump administration.
“This lawsuit is completely separate from, and unrelated to, the Skydance transaction and the FCC approval process,” Paramount Global said in its statement announcing the settlement. “We will abide by the legal process to defend our case.”
The president has recently gone on record as being in favor of the merger between Paramount and Skydance. The latter’s CEO David Ellison is the son of billionaire Larry Ellison, who is a friend and longtime supporter of Trump’s. While many believed that the personal relationship would grease the wheels on the merger, that was officially approved by Paramount's board almost exactly one year ago.
With this legal process now complete, all that the proposed merger needs now is FCC approval after the SEC signed off in February. While the two sides had planned on having the deal finalized during the first half of 2025, the president’s lawsuit prevented the process from moving forward.
During the first six months of his second term as president, Trump has used lawsuits against his perceived enemies as weapons. He has filed suits against ABC for comments made by anchor George Stephanopoulos and against law firms that were barred from government facilities as they were viewed as hostile toward Trump.
“With this record settlement, President Donald J. Trump delivers another win for the American people as he, once again, holds the Fake News media accountable for their wrongdoing and deceit,” Trump’s legal team said. “CBS and Paramount Global realized the strength of this historic case and had no choice but to settle. President Trump will always ensure that no one gets away with lying to the American People as he continues on his singular mission to Make America Great Again.”
The merger between Paramount Global and Skydance Media has already been a tumultuous one, but it does appear that the finish line is finally in sight; however, given the past 18 months, I wouldn’t advise holding your breath until everything is officially finalized.
Paramount Plus
Paramount+ is a subscription video streaming service that includes on-demand access to 40,000+ TV show episodes from BET, CBS, Comedy Central, MTV, Nickelodeon, Nick Jr., and more. Get free access with a Walmart+ subscription.
Paramount+ includes “1883,” “Tulsa King,” “Star Trek: Discovery,” “SpongeBob SquarePants,” and “PAW Patrol.” Subscribers can watch the NFL, college football, The Masters, college basketball, UEFA Champions League, UEFA Europa League, Serie A, and NWSL. The service also offers the option to watch your live CBS affiliate. The upgraded ad-free package includes premium movies and shows from Showtime.