House Democrats Frank Pallone, Jr. and Jamie Raskin are demanding answers from New Paramount CEO David Ellison about whether the company paid an “illegal bribe” to secure FCC approval of Skydance’s $8 billion merger with the media giant.
In a letter, the lawmakers cited Trump’s recent claim that Skydance agreed to pay an additional $20 million in the form of public service announcements and advertising on top of Paramount’s $16 million settlement with the president to resolve his lawsuit over a “60 Minutes” interview with former Vice President Kamala Harris.
The pair also expressed concern about the cancellation of “The Late Show with Stephen Colbert” and Skydance’s agreement to conduct a “comprehensive review” of CBS, to appoint an ombudsman to review complaints of bias, and to eliminate all diversity, equity and inclusion (DEI) initiatives and policies at the company.
Pallone, Jr. and Raskin have asked the company to turn over a copy of the Trump settlement and all related communications involving the president, White House, FCC or Trump Organization.
They also asked for all internal communications and documentation related to “settlement terms, side agreements, or policy changes,” including correspondence or any due diligence conducted between Paramount and Skydance, and to confirm if they cut a side deal for advertising and PSAs and any details of an agreement.
“As part of our mandate to conduct congressional oversight, we will continue to scrutinize the connection between Skydance’s offers made to the President prior to closing the deal, Paramount’s settlement of a sham lawsuit that enriches the president, and regulatory approval of the merger,” they wrote. “We will also continue to examine Paramount Skydance Corporation’s implementation and the FCC’s enforcement, under Chairman Brendan Carr’s leadership, of the merger conditions, with a special focus on any actions that appear to exceed the agency’s statutory authority.”
Though Paramount has said its settlement does not include PSAs, Skydance has declined to comment on a potential side deal with Trump.
During a media event earlier this month, Ellison said Skydance was not involved in the Trump settlement. When pressed about the existence of a side deal, he said: “I do not want to politicize our company in any way shape or form. We want to obviously speak to the biggest audience possible.”
When asked about whether Ellison is concerned the FCC would take action if the ombudsman finds bias, Ellison said, “I don’t think it’ll get to that.”
“We want to be path-based and truth-based [as] a news organization. That’s what we’re about. That’s the legacy of CBS,” he added.
New president Jeff Shell added the ombudsman is a “transparency vehicle, not an oversight vehicle,” clarifying that the process at Paramount is not being “overseen by the FCC or anybody else.”
“We do believe in transparency, both in the news division and, frankly, in every other business that we’re in — that’s why we’re here today, our first day of the first couple hours,” Shell said. “The second thing that’s very important is it’s an internal process. Of course, people from the outside can utilize it, but it’s internal. It’s meant to be something where George [Cheeks] and I can work with the leadership if … people think there’s bias, or they think there’s things that are done wrong in reporting to see if something was done or not done, and see if any correct action needs to be taken.”
In addition to Pallone, Jr. and Raskin, other lawmakers who have called out the Trump settlement and have sent New Paramount letters demanding answers include Sen. Adam Schiff, and Sens. Elizabeth Warren, Bernie Sanders and Ron Wyden.
