The proposed $35 million settlement in President Trump’s lawsuit against Paramount’s CBS affiliate has hit a snag, primarily due to concerns among the company’s executives about potential legal repercussions, according to sources familiar with the situation.
Insiders reported that Paramount’s leadership advised Trump’s legal team to stick to their original stance and seek a larger payout to resolve the lengthy legal battle.
Negotiations are still ongoing, and there’s always a chance for progress, as per recent regulatory filings.
Reports have surfaced that both parties have considered this $35 million settlement. However, the stalemate has implications that could hinder larger gains. Paramount is also in the process of selling itself to media heir Shari Redstone’s Skydance.
Paramount insiders indicated that finalizing Trump’s regulatory agreement with the FCC is crucial to a resolution. While Trump’s legal representatives and others have claimed there’s no correlation between the two matters, Paramount is wary that a substantial settlement could be perceived as a bribe, particularly as the $8 billion deal with Skydance looms.
This $35 million proposition, reportedly 30% less than the initial $50 million demand from Trump’s former legal team, is still viewed as a concern, especially since Trump’s team appeared willing to compromise. “Even this lesser amount raises alarms among key players,” one insider mentioned.
Moreover, Trump’s legal team has asserted that they are not facing a crisis concerning the proposed settlement.
Redstone stands to gain up to $2 billion from the sale to Skydance, and without an agreement, there wouldn’t be any significant financial influx available. Although Redstone has refrained from direct negotiations—due to personal benefits—there’s an ongoing anxiety within her management regarding any semblance of bribery linked to the lawsuit.
Democratic representatives have expressed concerns about bribery implications, suggesting that there could be increased scrutiny if political control shifts within the state’s attorney general’s office.
CBS has denied allegations of manipulating interview footage to make Kamala Harris appear more favorable ahead of the 2024 election.
Despite previous indications that Redstone was willing to offer up to $50 million to settle, the board recently allocated only $15 million—this mirrors a prior settlement with Disney-owned ABC News over a separate lawsuit from Trump.
The CBS lawsuit focuses on differences related to public service announcements on issues that Trump finds significant, such as anti-Semitism and veteran support.
The ongoing stalemate sees Trump’s team dismissing the $15 million offer, while the proposed $35 million settlement remains stagnant without any progression on the PSA front. This situation also complicates the pending Transferring issues concerning the Paramount-Skydance transaction.
Skydance, led by David Ellison—who is also a friend of Trump—continues to devise plans for a significant overhaul of media properties, particularly CBS, which has long been seen as the centerpiece of the Redstone Empire.
With shifting audience preferences and profit challenges, CBS News is undergoing changes. Network leaders have voiced worries that the Trump-related settlement might hinder their operations.
If the deal goes through, it’s expected that former NBCU chief Jeff Shell will take the helm at CBS. He may face the task of addressing allegations of bias tied to the Trump lawsuit as part of potential restructuring.
Those on the right have long accused CBS of slanting its programming, fearing possible legal violations due to its public broadcasting obligations.
As developments unfold, if an agreement is not reached soon, a federal judge is anticipated to rule on the findings in this case shortly.
Failure to resolve these issues by October may jeopardize the agreement between Skydance and Paramount under their preliminary contract.
Redstone also faces impending tax liabilities connected to her father’s estate, among other significant financial responsibilities.
