Texas — The mediation process between Paramount Global and former President Donald Trump regarding a $20 billion lawsuit concerning a “60 Minutes” segment begins this week, raising questions about how much the media giant might pay to resolve a case deemed frivolous by free speech experts.
During an April 18 meeting, Paramount’s board laid out guidelines for a possible settlement, as reported by sources familiar with the discussions. Mediation sessions are set to start Wednesday, with the company keen to move past the “60 Minutes” controversy and facilitate its pending sale to David Ellison’s Skydance Media.
The New York Times was among the first to report that the board had established parameters for a settlement. Officials acted to steer legal representation during the mediation, although a representative from Paramount declined to comment on the specifics.
Trump initiated the legal action last October in Texas, claiming that CBS edited a “60 Minutes” interview with then-Vice President Kamala Harris to misrepresent her and boost her chances in the election. Earlier this year, he escalated his claims, increasing the damages sought to $20 billion, shifting the focus away from First Amendment arguments to assertions of fraud affecting viewers in Texas.
Shari Redstone, Paramount’s controlling shareholder, has advocated for a resolution to facilitate the company’s merger with billionaire Larry Ellison’s family. However, her willingness to negotiate with Trump has sparked backlash within the organization. Last week, executive producer Bill Owens resigned, citing added corporate pressure related to the show’s coverage.
During a recent broadcast, veteran CBS journalist Scott Pelley disclosed Owens’ resignation, informing viewers that the production faced heightened corporate oversight as Paramount seeks Trump’s approval for the Skydance transaction. The transfer of CBS television station licenses to the Ellison family requires Federal Communications Commission (FCC) approval.
Pelley reassured viewers, stating that no stories have faced censorship due to corporate influence, but noted Owens felt a loss of the journalistic independence essential for credible reporting.
Redstone has stepped back from discussions regarding the settlement due to conflicts of interest, as her family stands to gain $1.75 billion from the deal with Skydance. Paramount risks backlash from shareholders if it proposes a substantial settlement viewed as a payoff to the former president.
Paramount’s legal team has refuted Trump’s allegations, asserting that CBS did not distort Harris’ interview. Raw footage reportedly indicates that she was quoted accurately, despite edits made to align with broadcast timing.
Board members are aware that a significant settlement could be construed as a financial incentive for the former president, potentially influencing the merger’s outcome. Amid this backdrop, Trump has expressed his dissatisfaction with CBS and “60 Minutes,” specifically targeting segments about the Russia-Ukraine war and his past suggestion to annex Greenland. He has called for maximum penalties against CBS through his appointed FCC official.
In a separate development, the FCC has recently reached out to Skydance to initiate the merger review process after a lengthy hiatus.
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