Negotiations over a potential $35 million settlement in the lawsuit between President Donald Trump and CBS along with its parent company Paramount Global have hit a significant snag, according to a new report from The New York Post. Paramount executives are reportedly hesitant to finalize the deal, citing concerns that a payout could be construed as a bribe given the merger approval process currently underway with the Federal Communications Commission (FCC).
Paramount owner Shari Redstone sits for an interview – YouTube, Vox Media
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The lawsuit—filed by Trump in Texas federal court last year—accuses CBS News’ 60 Minutes of deceptively editing an interview with then-Democratic nominee Kamala Harris to mislead the public ahead of the 2024 presidential election. CBS has denied the claims and specifically the allegation that it doctored Harris’s words to remove what critics call her signature “word salad” rhetoric.
$35 Million Offer on the Table… For Now
A $35 million figure was recently floated during settlement talks, a notable reduction from the original $50 million reportedly sought by Trump’s legal team. The offer represented a 30% concession, but insiders say Paramount’s legal counsel and executive team balked at signing off.
U.S. President Donald Trump sits for an interview with ABC News – YouTube, ABC News
Trump has also been demanding a formal apology and admission of wrongdoing from CBS, but it’s unclear whether this settlement offer involves such a concession.
Despite six months of negotiations, Paramount has not agreed to a payout—triggering a hardening of Trump’s legal posture.
FCC Approval in Jeopardy?
While Trump’s legal team and federal regulators maintain that the lawsuit and the pending Paramount-Skydance merger are separate issues, Paramount insiders view the lawsuit as a significant barrier to FCC approval. Any perceived link between a settlement and regulatory greenlighting could raise red flags—particularly given that FCC Chair Brendan Carr, a Trump appointee, has reportedly launched a probe into the alleged bias by CBS News.
President Donald Trump speaks at CPAC in 2017 – YouTube, The New York Times
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A source close to Paramount told The Post that the company fears any large settlement may be interpreted as a “bribe,” especially if the FCC then approves the $8 billion Skydance acquisition deal shortly afterward. This perception has executives spooked, with some concerned about possible litigation—or even criminal bribery charges—that would not be covered by corporate insurance.
Shari Redstone’s $2 Billion Dilemma
At the center of this corporate tug-of-war is media heiress Shari Redstone.
Paramount owner Shari Redstone sits for an interview – YouTube, Vox Media
Redstone, who controls Paramount, has long sought to sell the struggling company. A deal with Skydance Media, led by David Ellison (son of Trump ally Larry Ellison), could net her up to $2 billion personally. But her recusal from the negotiation table hasn’t spared the company from complications, as management now wrestles with both political optics and financial consequences.
Redstone has previously expressed willingness to authorize a $50 million settlement just to move the deal along. However, the board has only authorized a $15 million offer so far—mirroring the amount Disney’s ABC News paid to settle a separate defamation case brought by Trump over comments made by George Stephanopoulos.
CBS News Faces Turmoil
The CBS lawsuit has already triggered fallout within the news division. Two high-profile exits—CBS News boss Wendy McMahon and 60 Minutes executive producer Bill Owens—are reportedly tied to unease over settling what they saw as a “frivolous” case.
The logo for 60 Minutes – YouTube, CBS Evening News
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Meanwhile, Skydance has tapped former NBCUniversal chief Jeff Shell to take over CBS should the merger be completed. Shell is expected to initiate sweeping reforms, including possible reductions to staff and a reassessment of political bias concerns raised in Trump’s lawsuit.
Bill Owens, the former producer of 60 minutes – YouTube, CBS Evening News
CBS has long been accused by conservatives of harboring left-leaning bias in its news programming—allegations that, under a strict interpretation of FCC guidelines, could be seen as a violation of its responsibility to serve the public interest as an over-the-air broadcaster.
Discovery Phase Looms
If settlement talks collapse, the case may soon enter the discovery phase—a move that could prove costly for Paramount. According to The Post, the federal judge overseeing the case is expected to rule on discovery within weeks.
CBS News CEO Wendy McMahone – YouTube, Giants of Broadcasting & Electronic Arts
For Paramount executives and the company’s already strained legal department, that escalation could bring unwanted headlines and deeper scrutiny during a high-stakes merger negotiation.
In an earlier round of negotiations, both parties even considered “public service ad” components to help bridge the monetary gap—proposals that would have included campaigns against antisemitism and in support of U.S. veterans. But as of now, that concept appears stalled alongside the broader financial talks.
Where Things Stand
Trump’s CBS lawsuit has become more than just a legal entanglement—it’s a roadblock to Paramount’s financial future. Until a settlement is reached or the court resolves the matter, Shari Redstone’s $2 billion payday and the survival of one of Hollywood’s legacy studios remain uncertain.
Donald Trump speaks at a rally the night before being inaugurated as the 47th President of the United States of America – YouTube, Washington Post
And while both sides maintain negotiations are ongoing, it’s clear that trust is eroding—and time is running out.
How do you feel about the latest in this wild Trump CBS lawsuit? Sound off in the comments and let us know!
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Redstone had years and offer after offer, but she got greedy while her company sank further into the septic tank. Then she finally got forced to sell only to have this lawsuit stop the deal in its tracks.
Now Paramount may not be able to save the deal without either spinning off CBS (like Skydance really wants that milestone) or waiting till Trump is out of office.
Coulda had 1.5 BILLION dollars; more money than she could have spent in multiple lifetimes, but had to hold out for 2 billion. What for, Sherry? You are going to die and you want to enable your worthless heirs?
I hope this deal burns and Paramount loses so much value Redstone will be lucky to get $5 and a bottle of Jack at the end.
The legacy media deserves to die, for its treason.