Trump’s $35M Lawsuit Against CBS Hits Major Snag Amid Bribery Concerns and Legal Turmoil

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Reports indicate that negotiations for a proposed $35 million settlement in the legal dispute between President Donald Trump and CBS, together with its corporate entity Paramount Global, have encountered a major obstacle. This stems from the fact that executives at Paramount are reportedly reluctant to seal the deal due to apprehensions that such a payout might be perceived as a bribe, considering the ongoing merger approval process with the Federal Communications Commission (FCC).

Last year, Trump filed a lawsuit in federal court in Texas, claiming that CBS News’ 60 Minutes had manipulatively edited an interview with Democratic nominee Kamala Harris before the 2024 presidential election to deliberately mislead the public. CBS has refuted these allegations, particularly the one suggesting they altered Harris’s words to eliminate what critics refer to as her characteristic “word salad” speaking style.

$35 Million Offer on the Table… For Now

During negotiations for a possible settlement, it was proposed that the amount should be around $35 million – a significant decrease from the initial $50 million demand made by Trump’s legal team. This proposal represented a 30% concession, yet sources close to Paramount’s legal and executive teams have indicated they were hesitant to approve it.

It’s uncertain if the proposed settlement by Trump includes an apology and acknowledgement of wrongdoing from CBS, as he has been asking for these things too.

Even after six months of discussions, Paramount hasn’t consented to the payment. This refusal seems to have stiffened Donald Trump’s legal stance.

Or,

After six months of negotiations, Paramount has not reached an agreement on a payout. This lack of consensus appears to have made Donald Trump adopt a more firm legal approach.

FCC Approval in Jeopardy?

Paramount insiders see the ongoing lawsuit as potentially posing a major hurdle in obtaining approval from the FCC for their merger with Skydance, as there could be perceived connections between a settlement and regulatory approval. Such a link might trigger concerns—especially considering that FCC Chair Brendan Carr, an appointee of President Trump, has recently initiated an investigation into alleged bias by CBS News.

A trusted insider shared with The Post that Paramount is worried a significant payout might be seen as a “bribe,” especially if the FCC swiftly approves the $8 billion Skydance acquisition deal following it. This potential perception has top executives on edge, with some expressing apprehension about potential legal action—or even criminal bribery allegations—that wouldn’t be protected by their corporate insurance policy.

Shari Redstone’s $2 Billion Dilemma

At the center of this corporate tug-of-war is media heiress Shari Redstone.

Paramount’s majority owner, Redstone, has for a while aimed to offload the struggling business. A potential sale to Skydance Media, helmed by David Ellison (son of Larry Ellison’s ally), could potentially bring her a personal income of approximately $2 billion. However, her absence from the negotiation process hasn’t shielded the company from complexities. Presently, management is grappling with both the political perception and financial repercussions.

Previously, Redstone indicated readiness to approve a $50 million settlement as a means to expedite the agreement. On the other hand, the board has only sanctioned an offer worth $15 million at this point – a figure equivalent to what Disney’s ABC News paid in a different defamation case initiated by Trump following remarks made by George Stephanopoulos.

CBS News Faces Turmoil

The legal action against CBS has apparently instigated some internal discord within the news sector. Notably, the departures of CBS News head Wendy McMahon and executive producer Bill Owens are rumored to be linked to discomfort over settling a case they considered “unnecessary”.

In the event that the merger goes through, Skydance has chosen Jeff Shell, a former NBCUniversal executive, to lead CBS. Shell’s plans reportedly include significant changes, such as potential workforce reductions and a reevaluation of allegations regarding political bias brought up in Donald Trump’s lawsuit.

For years, CBS has faced criticism from conservatives for perceived liberal bias in its news content – a charge that, according to FCC regulations, might suggest a breach of its duty to uphold public interests as a terrestrial television station.

Discovery Phase Looms

If negotiations fail, it’s likely that the case will progress to the discovery stage, which might end up being expensive for Paramount. As reported by The Post, the presiding federal judge is anticipated to make a decision about discovery in just a few weeks.

In simpler terms, an escalation at this point might lead to undesirable news headlines and increased examination for Paramount executives and their legal team, particularly during critical merger discussions.

Previously, during negotiations, both sides contemplated integrating “public service announcements” aimed at addressing financial disparities. These ideas encompassed initiatives opposing antisemitism and advocating for U.S. veterans. However, as of now, these plans seem to have hit a roadblock alongside the ongoing broader financial discussions.

Where Things Stand

Trump’s lawsuit against CBS has evolved into something more than just a legal complication; it now poses an obstacle to Paramount’s financial prospects. As long as this issue isn’t resolved through a settlement or by the court, the potential $2 billion payout for Shari Redstone and the continued existence of one of Hollywood’s historic studios hang in the balance.

On the other hand, even though both parties claim that talks are still going on, it’s evident that trust is diminishing, and the clock is ticking.

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2025-06-19 20:59