A month into negotiations to settle President Donald Trump’s high-profile lawsuit against CBS News, a subsidiary of Paramount Global (PARA), the two sides are struggling to find common ground. Sources familiar with the discussions reveal that Paramount recently offered $15 million to resolve the dispute, but Trump’s team is holding firm, demanding over $25 million and a public apology from CBS News according to the Wall Street Journal. The negotiations, now at a critical juncture, face a looming deadline and the prospect of further legal action.
Trump’s lawsuit, filed against CBS News, centers on allegations that the network deceptively edited a “60 Minutes” interview with Vice President Kamala Harris to portray her more favorably. The suit seeks an eye-popping $20 billion in damages, a figure CBS has dismissed as baseless, insisting the broadcast was neither “doctored nor deceitful.” With Trump’s team threatening an additional lawsuit over alleged bias in CBS’s news coverage, tensions are running high. Wednesday, May 28, 2025, marks the deadline for Trump to respond to Paramount’s motion to dismiss the case, adding urgency to the talks. A tentative mediation session is scheduled for Thursday, sources confirmed.
The lawsuit has cast a shadow over Paramount’s broader business strategy, particularly its planned $8 billion merger with Skydance Media, which is under federal review by the Trump administration. Shari Redstone, Paramount’s controlling shareholder, has recused herself from the negotiations, leaving Paramount executives to navigate the delicate balance of settling the suit without exposing the company to future liabilities. A key concern, according to insiders, is whether a settlement could open directors and officers to shareholder litigation or even criminal charges for allegedly bribing a public official. To mitigate this, some Paramount executives are advocating for a settlement amount aligned with recent payouts by other companies in similar disputes with Trump.
For context, Disney settled a defamation lawsuit in December 2024 against ABC News and anchor George Stephanopoulos for $15 million, directed to Trump’s presidential foundation or museum, plus $1 million in legal fees. The suit stemmed from Stephanopoulos’s on-air claim that Trump was found liable for rape in a case involving writer E. Jean Carroll, though a federal jury had ruled it was sexual abuse. Similarly, Meta paid $25 million in January 2025 to settle a 2021 lawsuit over Trump’s account suspension after the January 6 Capitol riot, and X settled a related suit for $10 million in February.
The lawsuit’s fallout has also roiled CBS News internally. Earlier this month, CBS News CEO Wendy McMahon announced her departure, becoming the second high-profile exit from the news division. Sources say McMahon clashed with Paramount over the possibility of issuing an apology to Trump, a demand she refused to entertain. The controversy has further strained morale among CBS News staff, who view the lawsuit as an attack on journalistic integrity.
Meanwhile, Paramount is preparing for potential turbulence by planning to nominate three new directors to its board in the coming weeks, increasing the total to seven. One current director is expected to step down, sources said, as the company seeks to ensure a robust board in case the settlement talks collapse or the Skydance merger faces hurdles.
As the mediation deadline approaches, all eyes are on whether Paramount and Trump can bridge the $10 million gap and resolve the apology dispute—or if the battle will escalate further, potentially dragging Paramount into a prolonged legal and public relations quagmire.
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