Key Takeaways:
- Paramount has delayed a $35 million settlement with Donald Trump over a CBS interview with Kamala Harris.
- The delay is due to concerns the settlement could look like bribery.
- Paramount is waiting for government approval to sell to Skydance, a deal worth $8 billion.
- Trump’s team denies the settlement and the sale are connected.
- California lawmakers are investigating the settlement, fearing it could harm public trust in media.
Paramount HitsPause on $35M Settlement in Trump Lawsuit
Paramount has put a $35 million settlement on hold after Donald Trump sued its CBS affiliate. The lawsuit stems from a lightly edited interview with Vice President Kamala Harris. Now, the reason for the delay is raising eyebrows.
The media giant is worried the settlement might seem like bribery. This fear comes as Paramount seeks government approval to sell the company to Skydance, an independent studio. The deal is massive, worth $8 billion, and needs the green light from federal regulators.
Why the Delay?
Sources close to Paramount say the company is concerned. They believe regulators might think the settlement is a bribe to smooth the sale. Trump’s regulators at the Federal Communications Commission (FCC) are reviewing the deal. Paramount insiders think the settlement’s timing could hurt their chances of approval.
Trump’s legal team, however, says there’s no connection between the settlement and the sale. A source from Trump’s team told reporters, “We have a strong case.” The team has no plans to settle, showing confidence in their position.
California Steps In
The California State Senate has also jumped into the fray. Last month, they opened an inquiry into the potential settlement. Lawmakers are worried about the bigger picture. They fear this case could send a dangerous message: that political lawsuits can succeed if paired with regulatory threats.
In a letter, the Senate wrote, “Such a settlement would signal that politically motivated lawsuits can succeed when paired with regulatory threats.” They’re concerned it could damage public trust in CBS News and other California-based outlets. It could also hurt the state’s reputation as a leader in ethical journalism.
What’s at Stake?
The Senate letter highlights two major issues: a free press and fair regulation. They argue that Paramount giving in to the lawsuit could undermine these principles. A free press is essential in a democracy, and so is a fair regulatory system. If the settlement goes through, it might look like the media is being influenced by political pressure.
What’s Next?
For now, Paramount is holding off on the settlement. The company is likely waiting to see how the sale to Skydance progresses. Trump’s team is pushing forward with the lawsuit, confident in their case. Meanwhile, California lawmakers are keeping a close eye on the situation, worried about the implications for journalism and fairness.
This story is still unfolding, but one thing is clear: it’s a high-stakes battle involving media, politics, and billions of dollars. Stay tuned for updates as more details come to light.