Paramount Global executives have been internally discussing the possibility of settling a $10 billion lawsuit filed by Donald Trump against CBS News, according to sources familiar with the matter. This legal action, which accuses CBS of election interference through the editing of a “60 Minutes” interview with Vice President Kamala Harris, has become a focal point as Paramount navigates the regulatory landscape of its proposed merger with Skydance Media under the new Trump administration.
This was first reported a few weeks ago by The Wall Street Journal and now it’s reported by The New York Times that talks are advancing with talks happening between the two parties.
The lawsuit stems from claims that CBS aired two different versions of Harris’s interview, one on “60 Minutes” and another on “Face the Nation,” with varying responses about Israel policy which Trump alleges were edited to favor Harris’s presidential campaign. CBS has maintained that the broadcast on “60 Minutes” was a concise edit of the original interview.
The strategic considerations behind these discussions are heavily influenced by the impending review by the Federal Communications Commission (FCC), which has oversight due to the transfer of broadcast television licenses involved in the merger. Incoming FCC Chairman Brendan Carr has reportedly warned Paramount executives about the complexities this lawsuit could introduce to the approval process. At a reception late last year, Carr hinted at the potential difficulties, a message he has since reiterated publicly.
Andrew Jay Schwartzman, a public-interest attorney, suggested that such legal actions could be seen as Trump’s method to exert control over media narratives. “What’s going on here is a lot of bluster to discipline the future operations of CBS,” Schwartzman commented.
This isn’t the first instance of Trump targeting media entities. Previously, he sued Disney’s ABC News over comments by anchor George Stephanopoulos, resulting in a $15 million settlement directed towards Trump’s presidential foundation.
Paramount is considering several conciliatory measures, including enhancing CBS News’s editorial transparency and possibly releasing the full transcript of the Harris interview. These moves are part of a broader strategy to smooth relations with Trump’s administration while ensuring the merger with Skydance, led by David Ellison, proceeds smoothly. Ellison, known for his ties to Trump, is reportedly supportive of measures promoting unbiased journalism.
The situation mirrors past challenges faced by media companies like Time Warner with its merger with AT&T, where CNN’s coverage was under scrutiny. However, this time, the FCC’s involvement explicitly includes the fairness of news reporting, posing unique challenges for Paramount.
Additionally, Paramount faces other scrutiny, as the Paramount-Skydance deal has drawn attention from the House Select Committee on China due to Tencent Holdings’ investment in Skydance, which raises national security concerns given Tencent’s recent addition to a U.S. blacklist.
CBS News itself has been embroiled in controversy over its coverage, notably with an episode on the Biden administration’s Gaza policy, criticized for bias by Jewish organizations and internal CBS executives. This led to temporary oversight by former CBS News president Susan Zirinsky and a search for a permanent replacement to uphold editorial standards.
The internal discussions at Paramount highlight the delicate balance between maintaining journalistic integrity and navigating political and regulatory pressures. As the company seeks to finalize its merger, the outcome of these talks could set a precedent for how media companies manage legal and political challenges from high-profile figures like Trump.