Paramount, under the control of Shari Redstone, is on the verge of settling a notable legal dispute with President Trump regarding the alleged misleading editing of a “60 Minutes” interview featuring Kamala Harris. However, internal disagreements within the company have delayed progress, according to sources.
The media company is reportedly prepared to allocate as much as $50 million to resolve the $20 billion lawsuit initiated by Trump. This ongoing legal issue is currently hindering Redstone’s plans to sell Paramount, alongside CBS News, as they seek to finalize a deal with Skydance that is valued around $800 million.
Yet, internal turmoil at Paramount has left Redstone’s team hesitating. Managers and board members find themselves in a state of uncertainty, as indicated by insiders.
“It seems like there’s a bit of decision-making paralysis happening,” noted a lawyer familiar with the situation. “Redstone has seemed ready to resolve this for months but has been getting mixed signals.”
Another attorney close to the discussions mentioned, “We could come to a conclusion tonight or it might take until tomorrow.”
Sources reveal that the board holds emergency meetings weekly to determine the timing of a potential settlement.
While Redstone and representatives from Paramount opted not to comment, they didn’t refute the report.
It’s being said that Redstone and her board are facing considerable pressure from various legal team members and others who do not seem to fully understand Trump’s objectives.
Some argue that Trump’s lawsuit lacks merit and that “60 Minutes” should not have altered the segment with Harris. This faction believes that settling would betray press freedoms and yield to Trump’s perceptions of power over the media.
Earlier this week, Senator Bernie Sanders weighed in following the removal of CBS News president Wendy McMahon due to differing visions for the network’s future.
Conversely, other members of Redstone’s legal team are pushing for a swift resolution to the Trump lawsuit, suggesting that a payout of up to $50 million might appease Trump and ultimately be more cost-effective.
Federal judges in Texas have already dismissed attempts to drop the case. Legal advisors have voiced concerns that the expenses associated with continuing the trial would exceed the proposed $50 million if they prevail on First Amendment grounds.
“Eventually, you have to pay the man,” remarked one media lawyer familiar with the situation.
The stance of George Cheek, one of Paramount’s three co-CEOs, on the settlement remains unclear. Should the transaction advance, it could align with the planned merging with Skydance, although Paramount officials have refrained from disclosing any specifics about Cheek’s future role.
Resolving Trump’s lawsuit is perceived as vital for advancing Redstone’s prospective sale to Skydance. The regulatory landscape, particularly through the FCC, is scrutinizing the merger amid complaints alleging that CBS News hasn’t adhered to “public interest” standards, which demand balanced news coverage. Conservative groups have long accused the network of favoring Democratic narratives.
Trump’s legal claim mirrors an FCC probe prompted by a grievance from the American Rights Center, asserting that the editing of Harris’s interview during the 2024 campaign compromised fairness rules. Harris has been known for her sometimes convoluted responses to questions.
Redstone has expressed a belief that settling with Trump may ultimately be simpler. If she can simply pay him to step back, it wouldn’t fundamentally differ from what many media firms have already done to resolve legal disputes with him. Notably, Disney CEO Bob Iger has previously settled a $16 million lawsuit brought by Trump over misstatements made by ABC anchor George Stephanopoulos.
To secure his inheritance from the late media mogul Sumner Redstone, Paramount’s shares may need to be sold. As the media landscape evolves, Paramount’s stock is struggling. If the deal goes through, Redstone and her family could walk away with around $2 billion, a steep decline from Paramount’s nearly $40 billion valuation just a few years back.
