In a significant development, Paramount Global has settled a lawsuit with Donald Trump, facilitating the long-awaited merger with Skydance Media.
Paramount Settles Donald Trump Lawsuit, Clearing Path for Skydance Merger
Paramount Global has reached a settlement with Donald Trump in his lawsuit against CBS News, clearing a path for the media company’s long-delayed merger with Skydance Media.
Details of the Settlement
The settlement, announced close to midnight Tuesday on the East Coast, calls for Paramount to pay $16 million. Notably, it does not involve a formal apology by the company over its handling of a 60 Minutes interview. Trump sued CBS News and its parent company, Paramount, for $20 billion over the promotion of the interview last fall with former Vice President Kamala Harris, Trump’s opponent in the presidential election.
Future Protocols for Interviews
Paramount stated that 60 Minutes will release transcripts of interviews with eligible U.S. presidential candidates after those interviews have aired. The release will be “subject to redactions as required for legal or national security concerns,” the company said.
Impact on the Skydance Merger
This lawsuit is completely separate from the Skydance transaction and the FCC approval process, the company reiterated. The FCC review of the transaction had been held up by the suit, though agency chair Brendan Carr has insisted multiple times that the regulatory process and lawsuit are separate. Now, the review can proceed, including a “news distortion” complaint filed against CBS News in the 60 Minutes matter.
Concerns Over Bribery Allegations
Lawmakers, regulatory experts, and shareholders have indicated that Paramount controlling shareholder Shari Redstone and others involved in any settlement could be liable for bribery. They claim that a monetary settlement would essentially mean the deal participants are effectively paying the government for approval of the merger. These theories, which have emerged in the context of similar Trump crusades against other media companies, could be tested in courts in the coming months.
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Timeline of the Paramount-Skydance Deal
The Paramount-Skydance deal was formally proposed nearly a year ago. At various times, companies like Sony Pictures and investor groups expressed interest, but Skydance had the inside track given its longstanding relationship with Paramount Pictures. The closing process has been protracted, with both companies maintaining that the deal would be wrapped up during the first half of 2025.
Conclusion
The main culprit in the delay was the Trump suit. As the case wound through the legal process, the FCC’s approval of the deal remained the lone hurdle. Paramount is a controlled company, so the merger does not require shareholder approval, though the company’s annual shareholder meeting is scheduled for Wednesday morning.
