Latest news with #ShariRedstone
Daily Mail
20 hours ago
- Business
- Daily Mail
Report: Trump demands more money in Paramount lawsuit
The parent company of CBS News has balked at settling a lawsuit with Donald Trump for $35 million, leading the president to demand even more money, a bombshell report claims. CBS News parent Paramount was hesitant to settle the $20 billion suit - which claimed that a 2024 interview with Kamala Harris on 60 Minutes was deceptively edited - over fears of facing legal backlash for bowing to the president , the New York Post reported . Trump's legal team reportedly rejected a $15 million offer to settle the suit in May. The holdup threatens to upend Paramount heiress Shari Redstone's plans to sell the company. The deal could be voided come October if still not inked by that point. Trump's team 'appeared to be willing to settle for less, but even that amount worries the Paramount people,' one source told the Post. Trump's team continues to deny that his administration's approval of the Skydance deal is not contingent on settling the suit, while Paramount staffers say the deal has yet to be closed because of the ongoing litigation. An insider close to Trump's team told the Post the two sides were not close on a settlement. 'We have a strong case,' the source said. Redstone, 71, has recused herself from the talks, since she could personally benefit. If the deal goes through, she stands to make more than $1 billion as Paramount's primary shareholder, after reportedly offering to pay as much as $50 million to make the suit go away. Paramount - once a preeminent presence in Hollywood and broadcast TV - was worth close to $40 billion just few years ago. A federal judge overseeing the case is expected to grant discovery in the coming weeks if there is no settlement, the Post reported. Former CBS CEO Wendy McMahon and longtime 60 Minutes boss Bill Owens have both left their respective roles in protest of Paramount's willingness to settle. Stipulations set by the president require CBS to also issue a formal apology. Skydance - run by David Ellison, the son of Trump ally Larry Ellison - has named former NBCU chief Jeff Shell as the prospective boss of CBS News if and when the deal goes through. Shell is likely to downsize and address the alleged political biases in the network's news programming since it operates on public airwaves, the Post reported. The Daily Mail has contacted Paramount for comment.
Daily Mail
21 hours ago
- Business
- Daily Mail
Trump's lawsuit against CBS News takes stunning turn as president demands more money
The parent company of CBS News has balked at settling a lawsuit with Donald Trump for $35 million, leading the president to demand even more money, a bombshell report claims. CBS News parent Paramount was hesitant to settle the $20 billion suit - which claimed that a 2024 interview with Kamala Harris on 60 Minutes was deceptively edited - over fears of facing legal backlash for bowing to the president, the New York Post reported. Paramount brass believes any large settlement could be considered a bribe, since the the company's $8 billion merger with Skydance must be approved by the Trump administration. The decision led Trump's team to demand even more money, after a $35 million settlement was 'recently' offered and considered by both sides, the Post reported. The two sides remain in negotiations. Trump's legal team reportedly rejected a $15 million offer to settle the suit in May. The holdup threatens to upend Paramount heiress Shari Redstone's plans to sell the company. The deal could be voided come October if still not inked by that point. CBS News parent Paramount was hesitant to settle the $20 billion suit over fears of facing legal backlash for bowing to the president Trump's team 'appeared to be willing to settle for less, but even that amount worries the Paramount people,' one source told the Post. Trump's team continues to deny that his administration's approval of the Skydance deal is not contingent on settling the suit, while Paramount staffers say the deal has yet to be closed because of the ongoing litigation. An insider close to Trump's team told the Post the two sides were not close on a settlement. 'We have a strong case,' the source said. Several Congressional Democrats have raised the question of bribery in the deal. With midterm elections approaching, Paramount executives reportedly fear that any gains made by Democrats could open the company up to criminal investigation. Redstone, 71, has recused herself from the talks, since she could personally benefit. If the deal goes through, she stands to make more than $1 billion as Paramount's primary shareholder, after reportedly offering to pay as much as $50 million to make the suit go away. Paramount - once a preeminent presence in Hollywood and broadcast TV - was worth close to $40 billion just few years ago. Today, it's worth around $8 billion - less than half the sum Trump is suing for. The lawsuit filed last October accuses CBS, Paramount and 60 Minutes of deceptively editing an interview with then–Democratic presidential nominee Harris just weeks before the election. Trump alleges the footage was manipulated to 'tip the scales' in Harris's favor. CBS has denied the claim, slamming the allegations as coming 'completely without merit.' A federal judge overseeing the case is expected to grant discovery in the coming weeks if there is no settlement, the Post reported. Former CBS CEO Wendy McMahon and longtime 60 Minutes boss Bill Owens have both left their respective roles in protest of Paramount's willingness to settle. Stipulations set by the president require CBS to also issue a formal apology. Skydance - run by David Ellison, the son of Trump ally Larry Ellison - has named former NBCU chief Jeff Shell as the prospective boss of CBS News if and when the deal goes through. Shell is likely to downsize and address the alleged political biases in the network's news programming since it operates on public airwaves, the Post reported.
New York Post
a day ago
- Business
- New York Post
Paramount delays $35M settlement with Trump: sources
A potential $35 million settlement of President Trump's lawsuit against Paramount's CBS affiliate has been delayed after the company's management continued to fear a potential legal backlash, The Post has learned. Paramount's hesitancy to make a deal prompted members of Trump's legal team to maintain its initial bargaining position and demand even more money to end the protracted legal dispute, according to people close to the matter. The two sides, however, remain in active settlement negotiations, according to a regulator filing. A potential deal breakthrough is always a possibility. 5 The impasse over President Trump's lawsuit against CBS News threatens to continue to throttle a bigger prize — media heiress Shari Redstone's plan to sell Paramount to independent studio Skydance. Christopher Sadowski The $35 million settlement was recently floated and considered by both sides, according to two sources, as negotiations over the $20 billion lawsuit enter their sixth month. The impasse threatens to throttle a bigger prize — media heiress Shari Redstone's plan to sell Paramount to independent studio Skydance. Approval of the deal by Trump's regulators at the Federal Communications Commission is seen as contingent on settlement of the case, people at Paramount tell The Post. Trump legal reps and officials deny that that two issues are related, but Paramount executives are concerned that any large settlement would be considered a bribe since the fate of the $8 billion Paramount-Skydance merger is at stake. A settlement for $35 million would have been a 30% haircut from the original $50 million Trump's legal advisers had tried to squeeze out of the company to end the lawsuit filed in Texas federal court last year, as The Post previously reported. '(The Trump people) appeared to be willing to settle for less but even that amount worries the Paramount people,' one deal insider told The Post. A source close to the Trump legal team denied that it was on the verge of settling for $35 million. 5 Redstone, Paramount's controlling shareholder, stands to net as much as $2 billion when her long-held desire to unload the company to Skydance is completed. Getty Images 'We have a strong case,' the source said. A Paramount spokesman declined comment. A legal rep for Trump didn't return a request for comment. A Redstone rep didn't return a request for comment. One thing appears certain: Paramount's continued reluctance to pay a significant settlement, one lower than the Trump people had initially sought, hardened the president's legal team's position and could create a situation where the case remains in court for a protracted period, sources close to the matter say. The lawsuit, filed in Texas last year, alleges that CBS News' longtime news program '60 Minutes' doctored an interview with Democratic presidential nominee Kamala Harris ahead of the 2024 presidential election. It comes as the Trump-nominated FCC Chair Brendan Carr subsequently launched a probe into the alleged biased editing, casting a cloud over whether the merger will get the green light from the regulator. 5 A settlement for $35 million would be a 30% haircut from the original $50 million Trump's legal advisers had tried to squeeze out of the company. AP Redstone, Paramount's controlling shareholder, stands to net as much as $2 billion when her long-held desire to unload the company to Skydance is completed. Without a settlement, there is no windfall for the cash-bleeding Redstone, and therein lies the issue for Paramount. Redstone has officially recused herself from negotiations given she will personally benefit, but the notion that the lawsuit is tied to the regulatory approval of her deal is vexing her management team and preventing them from signing off on a payment of any size that could be legally construed as a bribe, They fear they could be subject to litigation and even criminal bribery charges that are not covered by insurance, people with direct knowledge of the matter tell The Post. Several Democrats in Congress have raised the bribery issue and the worry is that a state attorney general or Congress — if it changes hands in the midterms — could launch an investigation. 5 CBS has denied the charges and the main allegation that it purposely edited the Kamala Harris interview to edit out her famous 'word salad' vernacular to make her sound more presidential. 60 Minutes / CBS Redstone had indicated in the past she was willing to pay as much as $50 million to make the case go away so she can preserve some semblance of her inheritance from her late father, media mogul Sumner Redstone, which has been decimated with the decline in Paramount's fortunes in recent years. The board has recently offered $15 million – the same amount paid by Disney-owned ABC News to settle a defamation lawsuit brought by Trump after 'This Week' anchor George Stephanopolous repeatedly accusing him of 'rape.' In the CBS lawsuit, both sides have weighed making up the difference with public service ads involving causes that the president would appreciate, including those combating antisemitism and promoting US veterans, The Post previously reported. But the stalemate continues with the Trump team brushing off the $15 million offer, the $35 million deal stalled and the PSA offer not advancing. Meanwhile, the delay – and its implications for the Paramount-Skydance deal – has been looming large for all the players involved. Skydance is run by movie maven David Ellison, the son of Trump friend and Oracle co-founder Larry Ellison, who is worth approximately $250 billion. 5 Skydance is run by movie maven David Ellison, the son of Trump friend and Oracle co-founder Larry Ellison, who is worth approximately $250 billion. Evan Agostini/Invision/AP Behind the scenes, Skydance continues to draw up plans for a massive restructuring of the media properties, including CBS, once considered the crown jewel of the Redstone empire for its top-rated shows, sports and influential news programming such as '60 Minutes.' Cord-cutting and changes to the media business landscape have squeezed profits at CBS News. The network's boss Wendy McMahon and longtime '60 Minutes' executive producer Bill Owens recently departed, voicing concerns over the settlement of what it considers a frivolous case with Trump in order to proceed with the deal. Skydance and its deal partner, private equity powerhouse RedBird Capital, have anointed former NBCU chief Jeff Shell as the new CBS chief if the deal gets done. He is likely to downsize the organization and, according to sources, address the alleged political biases in its news programming that are at the center of the Trump lawsuit. For years conservatives have complained that CBS tilts the scales in interviews and programming that projects a left-leaning political bias that under a strict reading of Federal Communications Commission rules could violate the law since it operates over public airwaves that demand it serve the 'public interest.' CBS has denied the charges and the main allegation that it purposely edited the Harris interview to edit out her famous 'word salad' vernacular to make her sound more presidential. If there is no settlement, the federal judge in the Trump lawsuit is expected to grant discovery in the case in the coming weeks, which would be a significant legal escalation that Paramount and Redstone wanted to avoid. If the matter doesn't get resolved by October, the deal could be voided under the preliminary agreement reached between Skydance and Paramount. Redstone has a looming tax bill coming due over her late father's estate and other obligations that could total in the hundreds of millions of dollars.
New York Post
13-06-2025
- Business
- New York Post
How to read the tea leaves on stalled $8B Paramount-Skydance deal
Everyone is reading the tea leaves these days on the seemingly forever stalled $8 billion Skydance-Paramount deal. The Wall Street fortune tellers keep looking for clues as to whether Paramount heiress Shari Redstone will pay President Trump what he wants to settle a $20 billion lawsuit against its CBS subsidiary? And if she does, will that be enough to get the deal approved by his broadcast regulators. Advertisement The Wall Street fortune tellers keep speculating as to whether Shari Redstone will pay Trump what he wants to settle a $20 billion lawsuit against CBS. Jack Forbes / NY Post Design On The Money exists at least in part to cut through the malarkey – and tell you that the latest tea leaves being closely examined are (as a certain great playwright once said) full of sound and fury, signifying nothing. One of those tea leaves led to the suggestion that Paramount laid off people earlier this week, a pretty steep 3% of its current workforce, because it's planning that the deal will not go through. Layoffs of such a magnitude usually occur not when two parties are about to merge, but long before, or when there is no deal in the works. The thinking is that current management is resizing the business because they plan on operating Paramount for the foreseeable future. Advertisement As On The Money was first to report, Paramount's top brass – aside from Redstone (she's recused herself because of the potential payday) – is wary of the optics of paying off Trump so Shari can walk away with what's left of the nest egg left to her by her father, the late merger impresario Sumner Redstone. They fear it could open the company to bribery charges by settling the frivolous lawsuit – alleging '60 Minutes' deceptively edited an interview with Kamala Harris in the heat of the campaign (Trump won the election so there's no damages) – that their directors and officers insurance doesn't cover if some prosecutor brought a case. All true, but the layoffs had little to do with the future of the deal, one way or the other, people close the transaction told On The Money. Advertisement Paramount fears it could open the company to bribery charges by settling the frivolous lawsuit – alleging '60 Minutes' deceptively edited an interview with Kamala Harris in the heat of the campaign. 60 Minutes / CBS SkyDance had planned to own Paramount by now, and was planning the exact same cuts to make the numbers work before it can invest and grow the business, sources said. With the deal in limbo, Paramount just did it first so cross that tea leaf off your list. The second tea leaf is a little more interesting, though I am told, just as inconsequential to the deal's outcome. Advertisement It involves the appearance of Skydance boss David Ellison ringside at a UFC 314 fight in Miami several weeks ago with Trump, who was shaking hands and schmoozing with the likes of Joe Rogan and Shaquille O'Neal. The tea-leaf-reading talk here speculated that the deal is back on – Trump can't wait to approve it as a favor to David's dad, and Trump bestie, Larry Ellison. Why would Trump be seen with Larry's kid if he were about to screw him? Except, guess who else was ringside as Trump made his way through the crowd? Elon Musk, yes that Elon who had just called Trump some really nasty names. So nasty that earlier this week, Elon issued a semi-apology. He was sitting with his son, not far from the younger Ellison and Trump. So cross that one off as well, deal watchers tell me. For now, those looking for clues on how this stalemate ends will have to turn over a new tea leaf.
Reuters
13-06-2025
- Business
- Reuters
Breakingviews - Paramount saga presses pause on some TV deals
NEW YORK, June 12 (Reuters Breakingviews) - Paramount Global's (PARA.O), opens new tab deal has reached rockier terrain. In fresh signs of complication for its $8.4 billion merger with David Ellison's Skydance Media, the owner of the CBS broadcast network just nominated three new directors and replaced its chief financial officer as it awaits U.S. regulatory approval. President Donald Trump's lawsuit against the renowned '60 Minutes' news program is the wildcard that threatens to delay some industry consolidation. Home to the 'Mission: Impossible' movie franchise, Paramount is scrambling to cope with its limbo state nearly a year after controlling shareholder Shari Redstone agreed to the controversial sale. CFO Naveen Chopra decamped, opens new tab earlier this week and the company's three-headed CEO office is planning deeper job cuts. Moreover, it tapped, opens new tab attorney Mary Boies and two others to expand the shrunken board, partly to prepare for a possible independent future. A U.S. Federal Communications Commission review has dragged on, muddled by Trump's accusations that '60 Minutes' deceptively edited an interview with his campaign rival Kamala Harris. Paramount, which needs agency approval to transfer its TV licenses, offered $15 million to settle the case, but the president has asked for $20 billion and spurned it, according to media, opens new tab reports, opens new tab. FCC Chairman Brendan Carr also rejected CBS' request to dismiss the complaint. Although Paramount's shares have gained 15% this year, they trade one-fifth below Skydance's $15 cash-and-stock offer. Redstone has one more extension available, but if things aren't sewn up by October, either side can walk away. Even if they work it out, the situation is problematic for Brian Roberts, Bob Iger and David Zaslav, respective bosses of Comcast (CMCSA.O), opens new tab, Walt Disney (DIS.N), opens new tab and Warner Bros Discovery (WBD.O), opens new tab. All three are mapping out M&A as part of an industry-wide video-streaming shakeup, but also own news networks that irritate the TV-watcher-in-chief. Trump has made derisive remarks about MSNBC, one of the cable networks being spun out by Comcast. CNN, now part of WBD's similar breakup, came into play when AT&T (T.N), opens new tab bought Time Warner during the former reality-TV star's first term in the Oval Office. Disney opted to donate $15 million to Trump's presidential library to resolve his defamation lawsuit against ABC News. Being in the White House's crosshairs threatens to impede these moguls as their peers strike deals, such as Charter Communications' (CHTR.O), opens new tab $35 billion takeover of cable rival Cox Communications. Buyout firm Apollo Global Management (APO.N), opens new tab is shopping its portfolio of TV stations, too. For them, less news should be good news. Follow Jennifer Saba on Bluesky, opens new tab and LinkedIn, opens new tab.
