Paramount's hesitation in agreeing to a deal with President Donald Trump in his $20 billion lawsuit against the company over CBS News' editing of an interview with former Vice President Kamala Harris has delayed a potential $35 million settlement.
The company, reportedly fearing a bribery investigation if a deal is reached while it has a $8 billion merger in limbo with the Federal Communications Commission, remains in active settlement negotiations with Trump's legal team, reports The New York Post's Charles Gasparino Thursday.
The delay has prompted Trump's side to demand even more money to end the dispute, according to sources.
Both sides had considered the $35 million settlement, according to two sources close to the situation.
Trump sued Paramount on allegations that CBS' "60 Minutes" edited its interview with Harris ahead of the 2024 election to make her sound more presidential.
Meanwhile, the standoff over a deal on the lawsuit is threatening plans backed by Paramount's controlling shareholder, Shari Redstone, to sell off Paramount to Skydance Media, in an $8 billion merger that Trump said Wednesday he endorses.
The merger's approval has been pending at the Federal Communications Commission since last fall.
Trump-nominated FCC Chair Brendan Carr has launched an investigation into the claims that the network was biased in its editing, casting some doubt about whether the agency will endorse.
Paramount executives, however, are reportedly concerned that a large settlement could be considered a bribe, as the $8 billion merger remains at stake.
The president, meanwhile, on Wednesday referred to Skydance CEO David Ellison as "great," and said that "he'll do a great job" with Paramount, reported The Los Angeles Times.
Trump told reporters at the White House that his team and Paramount are working on a settlement, but added that two high-level CBS executives, former CBS News head Wendy McMahon and longtime "60 Minutes" executive producer Bill Owens have left as the merger review went on.
"They're all getting fired," Trump said.
Last week, Trump's legal team requested a deadline extension in the lawsuit's discovery procedures, reported the Los Angeles Times.
The New York Post on Thursday reported that the FCC's approval of the merger is contingent on the settlement of the case, quoting sources, but Trump's legal representatives and administration officials denied that the two issues are connected.
Meanwhile, a source close to Trump's legal team denied that it was closing in on a $35 million settlement, commenting that "we have a strong case."
Redstone, who has recused herself from the negotiations, could net $2 billion in the merger if it goes through once a settlement is reached in the case.
Several congressional Democrats have raised the issue of bribery, and could launch an investigation if the House returns to their party's majority hold in next year's midterm elections.
Redstone has indicated she'd pay as much as $50 million to settle the case while preserving some of her inheritance from her father, media kingpin Sumner Redstone. She reportedly has a large tax bill coming due on her father's estate, as well as other obligations costing her hundreds of millions of dollars.
Meanwhile, Redstone was diagnosed with thyroid cancer earlier this spring, adding another potential complication to the case, the Los Angeles Times reported earlier this month.
“While it has been a challenging period, she is maintaining all professional and philanthropic activities throughout her treatment, which is ongoing," her spokeswoman, Molly Morse, commented while confirming the diagnosis.
But if the lawsuit isn't resolved by October, the merger deal could become void under a preliminary agreement Paramount and Skydance reached.
Sandy Fitzgerald ✉
Sandy Fitzgerald has more than three decades in journalism and serves as a general assignment writer for Newsmax covering news, media, and politics.