Latest news with #Skydance
UPI
17 hours ago
- Business
- UPI
Paramount stalls $35 million '60 Minutes' settlement, slowing merger
June 19 (UPI) -- Paramount has pulled back on a $35 million settlement with President Donald Trump after he sued the media company over a segment on CBS' News' "60 Minutes." The lawsuit alleges that the program edited an interview with Democratic presidential nominee Kamala Harris ahead of the 2024 election to change how she would appear to viewers. The stalled settlement is holding up a potential $8 billion takeover of Paramount by Skydance, a deal that the two companies negotiated over a year ago. Despite the legal wrangling, Trump has said he is encouraged by the proposed merger in its current form, and endorsed the deal proposed by Skydance's David Ellison. "Ellison is great," Trump told reporters on the White House lawn Wednesday. He'll do a great job with it." Trump seemed to have connected the delay in the deal to his Paramount lawsuit. The internal debate over the Trump lawsuit and the way it was being handled prompted CBS News President Wendy McMahon to resign in May, saying in a memo that she and the company could not agree on a path forward. The Paramount-Skydance deal has been pending review by the Federal Communications Commission since last fall.
Globe and Mail
19 hours ago
- Business
- Globe and Mail
'He'll Do a Great Job': Trump Endorses Ellison, Paramount Stock (NASDAQ:PARA) Ticks Up
In what might be some kind of cosmic irony, President Donald Trump—who is currently suing entertainment giant Paramount (PARA) over an interview staged on 60 Minutes—came out in support of Skydance boss David Ellison. Ellison might be taking over Paramount before much longer, assuming the merger of the two actually goes through. But Trump's endorsement proved good enough for investors, who sent shares up fractionally in the closing minutes of Wednesday's trading. Confident Investing Starts Here: Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter Trump made it clear, declaring David Ellison 'great,' and further noting that 'he'll do a great job.' Given that the merger that would allow Ellison even a chance to do that great job has not yet materialized, currently held up by not only Trump's own lawsuit but also a Federal Communications Commission (FCC) review, it comes across as at least a bit ironic. Interestingly, while being interviewed earlier today and coming out with the notion that Ellison would do well, Trump did not comment on what was actually holding up the works on the merger, whether with his own lawsuit or the FCC's probes. Another Corner Heard From And the opposition to a settlement with the president proved to be a little stronger as of today, as the Committee to Protect Journalists (CPJ) recently came out with its own letter to Shari Redstone, offering up what one report called '…serious concerns about the potential implications of a settlement…' in the lawsuit in question. The Committee's letter, signed by committee chair Jacob Weisberg, noted that the '…lawsuit is without merit,' a point that at least some legal experts agree on. Not all of them do, of course, but when has there ever been a court case that had absolute agreement from every lawyer who looked at it? The letter went on to declare utter innocence for 'the journalists and editors at CBS…' and that there was '…nothing inherently unethical or duplicitous' about their behavior in the matter. The letter also carried stark warnings about presidential administrations allowed to '…interfere with or influence editorial decisions' should the settlement go through, as it looks like it will. Is Paramount Stock a Good Buy Right Now? Turning to Wall Street, analysts have a Hold consensus rating on PARA stock based on two Buys, eight Holds and five Sells assigned in the past three months, as indicated by the graphic below. After a 18.99% rally in its share price over the past year, the average PARA price target of $12.08 per share implies 0.25% upside potential. See more PARA analyst ratings Disclosure
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.
