In a stunning decision, Paramount Global has agreed to settle a CBS lawsuit with US president Donald Trump deemed frivolous by legal experts and
In a stunning decision, Paramount Global has agreed to settle a CBS lawsuit with US president Donald Trump deemed frivolous by legal experts and pay $16m in a move observers believe will clear the way for the parent company’s merger with Skydance.
Under the deal, announced delayed on Tuesday, the payment will go to Trump’s presidential library and not be paid directly or indirectly to Trump. The settlement did not include an apology or regret and Paramount Global agreed to release future transcripts of interviews with eligible US presidential candidates after the interviews have aired, subject to redactions.
Paramount Global co-CEO George Cheeks defended settlement at the annual shareholders meeting on Wednesday morning (July 2), when seven directors including controlling shareholder Shari Redstone and three novel members were elected to the board.
Cheeks told investors the company settled to avoid the “unpredictable” cost of a legal defence, adding: “Settlement offers a negotiated resolution that allows companies to focus on their core objectives rather than being mired in uncertainty and distraction.”
The settlement is seen as another example of a media organisation kneeling before the White House incumbent, who has been on the warpath against institutions, law firms, and media companies that disagree with him. Last December Disney paid $15m to settle a defamation lawsuit brought by Trump.
Trump filed his CBS case last October after the network broadcast a pre-election interview with then Democratic presidential candidate Kamala Harris on Face The Nation and aired a more concise version of her reply to a question about Gaza on its 60 Minutes show the following day. Trump said the editing was deceitful and designed to benefit Harris and damage him.
CBS, which said Trump’s team declined an interview offer around the same time, argued the editing was standard journalistic practice. Trump’s attorneys demanded $20bn in damages, prompting commentary from legal experts who said the case lacked merit.
In March CBS and Paramount Global filed a motion to dismiss the case, calling it an “affront to the First Amendment” protecting free speech. The parties then appointed a mediator to explore a settlement.
In a statement on Tuesday night, Paramount Global said: “This lawsuit is completely separate from, and unrelated to, the Skydance transaction and the FCC [Federal Communications Commission] approval process. We will abide by the legal process to defend our case.”
However observers believe that Redstone was prepared to settle in order to get the $8bn Skydance deal over the finish line. FCC chair Brendan Carr has said the lawsuit is not a factor in its review of the Skydance merger.
Writers Guild of America East said it stood behind the work of members on 60 Minutes and CBS News, adding: “We wish Paramount Global had the courage to do the same… Paramount’s decision to capitulate to Trump threatens journalists’ ability to do their job reporting on powerful public figures.”
In April 60 Minutes executive producer Bill Owens resigned over the matter, and the following month news president Wendy McMahon was forced out.
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