California Senators Suggest Paramount-Trump Settlement Would Amount to a Bribe and Harm Independent Press
Two California state senators have called for a hearing on the settlement talks between Paramount Global and President Trump, alleging that such a deal would amount to a bribe in order to obtain regulatory approval for the studio's merger with Skydance Media.
In a letter sent Friday, Sens. Tom Umberg and Josh Becker suggest that a settlement could violate state and federal law, as well as have a 'chilling effect' on investigative and political journalism. The senators invited Wendy McMahon and Bill Owens, top CBS News executives who have resigned in recent weeks, to testify.
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The senators said they were at the beginning stage of an inquiry focused on 'ensuring that public-facing media enterprises compete based on content and quality, not influence, capitulation, or political appeasement.'
The letter was first reported by Semafor.
Trump sued CBS last October for $10 billion, alleging that the network had engaged in consumer fraud by editing out a portion of a '60 Minutes' interview with Kamala Harris. Though CBS has argued in court that the suit is without merit, Paramount controlling shareholder Shari Redstone has nevertheless reportedly pushed for a settlement, in hopes that doing so will help expedite the pending $8 billion Skydance. Trump later amended the suit to seek $20 billion in damages.
The Wall Street Journal reported this week that Paramount is willing to pay up to $15 million, though Trump has held out for a higher amount.
Three Democratic U.S. senators — Elizabeth Warren, Ron Wyden and Bernie Sanders — raised alarms earlier this month about the discussions, suggesting that a corrupt quid pro quo may violate the federal bribery statute.
Umberg is a former federal prosecutor. In their letter, he and Becker, both Democrats, suggest a settlement would also violate California's unfair competition law, and expose board members to shareholder lawsuits.
'Paramount's capitulation would also undermine two essential pillars of a liberal democracy: a free press and an impartial, rule-of-law regulatory system,' the senators wrote.
Owens, the executive producer of '60 Minutes,' stepped down in April, citing interference with CBS' corporate overseers at Paramount. McMahon, the president of CBS News who also oversaw local stations, resigned May 19, also citing conflicts with Paramount honchos.
The letter invites both to testify as 'friendly witnesses,' suggesting they may be able to offer insight about the talks and pushback from the news division. The Paramount board was copied on the letter.
Some ethics experts have indicated it would be difficult to prove a bribery charge in court, given the challenge of demonstrating an explicit quid pro quo.
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