Paramount co-CEO George Cheeks says the media giant settled Donald Trump’s lawsuit against CBS and “60 Minutes” to allow the company to focus on its “core objectives, rather than being mired in uncertainty and distraction.”
“Look, companies often settle litigation to avoid the high and somewhat unpredictable cost of legal defense, the risk of an adverse judgment that could result in significant financial as well as reputational damage, and the disruption to business operations that prolonged legal battles can cause,” Cheeks said during a Q&A session as part of their annual shareholder meeting on Wednesday. “Settlement offers a negotiated resolution that allows companies to focus on their core objectives, rather than being mired in uncertainty and distraction.”
Trump initially sued CBS and “60 Minutes” for $20 billion, claiming that an Oct.7 interview with former Vice President Kamala Harris was deceptively edited and caused him “mental anguish.”
The settlement payment includes “plaintiffs’ fees and costs” as well as a donation that will be allocated to a “future presidential library.” Paramount also said that “in the future, ’60 Minutes’ will release transcripts of interviews with eligible U.S. presidential candidates after such interviews have aired, subject to redactions as required for legal or national security concerns.”
But the settlement stopped short of issuing any statement of apology or regret from CBS or “60 Minutes.” Trump will not receive any money directly or indirectly and he will release all of his claims, including those of defamation.
The Wall Street Journal previously reported that Trump shot down Paramount’s initial offer to settle the lawsuit for $15 million, with him aiming to get at least $25 million and an apology.
“With this record settlement, President Donald J. Trump delivers another win for the American people as he, once again, holds the Fake News media accountable for their wrongdoing and deceit. CBS and Paramount Global realized the strength of this historic case and had no choice but to settle,” a spokesperson for Trump’s legal team told TheWrap in a statement. “President Trump will always ensure that no one gets away with lying to the American People as he continues on his singular mission to Make America Great Again.”
While many observers viewed a settlement of Trump’s lawsuit as the final hurdle to clearing the Skydance deal for regulatory approval, both Paramount and FCC chairman Brendan Carr have said the settlement talks were unrelated to the agency’s review. The review is required due to a transfer of broadcast licenses.
Carr has warned that “all options remain on the table” in the agency’s ongoing investigation into alleged “news distortion” related to the Harris interview, including potentially revoking CBS’s broadcast license if the network is found to have violated the agency’s public interest standard.
The deal, which executives have said would close in the first half of 2025, is poised to trigger its second automatic 90-day extension next week, which would push the closing deadline to Oct 6. After that, both sides have the option of terminating the merger, which would not result in Paramount being on the hook for the agreement’s $400 million breakup fee.
When asked by reporters last month whether he sees the agency’s review being resolved soon, Trump replied: “I hope so. Ellison’s great, he’ll do a great job with it.”
While Trump’s lawsuit is behind them, Sens. Bernie Sanders, Elizabeth Warren and Ron Wyden have previously issued a warning to Redstone that reaching a settlement in exchange for regulatory approval could violate federal anti-bribery laws.
The California State Senate has also launched an investigation into the matter and invited former “60 Minutes” executive producer Bill Owens and former CBS News president Wendy McMahon to testify.
Paramount’s settlement comes after Disney previously paid $15 million to settle a defamation lawsuit Trump brought against ABC News and star anchor George Stephanopoulos. Meta also paid $25 million to settle Trump’s lawsuit about being kicked off Facebook and Instagram after the attack on the Capitol on Jan. 6, 2021.
