Shari Redstone in ‘tough spot' as Paramount board fears settling with Trump will open Pandora's box on bribery lawsuits: sources
They're reading their D&O policies and checking them twice.That's the word from inside Paramount, whose board and controlling shareholder Shari Redstone are struggling to reach a decision about settling a $20 billion lawsuit brought by President Trump over a controversial '60 Minutes' interview with Kamala Harris.They fear the Paramount board's so-called Directors and Officers liability insurance, commonly known as D&O, wouldn't cover bribery – a charge they could be exposed to if they give into Trump's demands, On The Money has learned.As this column has reported, Redstone is willing to pay Trump up to $50 million to settle the case that comes as Trump's own Federal Communications Commission is holding up approval of her plan to sell Paramount and its CBS news subsidiary to independent film company Skydance.
Her decision could come any day now, and Trump is said to be receptive to the deal. He recently settled a libel suit with ABC, forcing Bob Iger, who runs the network's parent company Disney, to fork over $16 million.
But Disney and ABC aren't in the middle of a merger, and the Paramount payment could be seen as a bribe to curry favor with the Trump administration and facilitate the Skydance deal, media executives tell On The Money.
Compounding the problem for the board and Redstone is that D&O insurance typically doesn't cover bribery. There is a possibility of civil suits brought by shareholders, a possible criminal investigation mounted by a Trump-hating prosecutor, and – if the Democrats take the House and/or the Senate in the midterms – endless congressional hearings.
'I feel badly for her,' one top media CEO with direct knowledge of the matter said of Redstone. 'She's really in a tough spot.''They're really worried that they could face civil or even criminal charges and their insurance doesn't cover the legal expense,' the executive added. 'The problem is no one really thinks Trump has a good case and she would be settling to push the deal forward.'
A Redstone spokeswoman declined comment. A Trump legal adviser declined to comment.
'This lawsuit is completely separate from, and unrelated to, the Skydance transaction and the FCC approval process,' a Paramount spokesperson said in a statement. 'We will abide by the legal process to defend our case.'Of course, businesses settle with the government all the time over regulatory infractions rather than engage in a more costly legal battle. Some media executives say the difference here is that Redstone isn't settling with the government, but a single individual who has vast control over her wealth. Already several Democratic lawmakers such as Vermont socialist Senator Bernie Sanders have warned about the legal implications of a settlement.Despite the hand wringing, Redstone's decision is said to be imminent and she has told people it is her preference to settle the matter and move on with her life. The Paramount-Skydance deal is valued at $8 billion. Redstone, 71, has seen her fortune evaporate with the sharp decline in Paramount stock in recent years.
If the deal is completed, she would walk away with $2 billion, and preserve a modicum of the wealth she inherited from her dad, the late media dealmaker Sumner Redstone.Trump filed the lawsuit against CBS last October during the heat of the 2024 presidential election, following a '60 Minutes' interview with Harris, the Democratic nominee. The lawsuit mirrors a complaint filed with the FCC by a conservative legal group that alleges that the CBS news magazine deceptively edited the interview to make Harris's word-salad answers sound more presidential.CBS has long been accused of left-wing bias, though the First Amendment generally provides a free-speech shield. The Trump FCC, however, is contending that CBS, which operates over public airwaves as opposed to cable, has a legal, 'public interest' duty to provide unbiased news coverage particularly during a presidential election.The FCC is holding up approving the Paramount-Skydance deal and Redstone's much-needed access to cash as it investigates whether '60 Minutes' did indeed tilt the scales in its editing and the Trump lawsuit remains active in Texas federal court.
The conservative legal group known as the Center For American Rights says there is clear evidence of deceptive editing, pointing to the full transcript of the Harris interview that shows a long-winded, and in its view, less coherent answer to a policy question involving the war in Gaza.
'60 Minutes' denies that it has done anything wrong and says that it regularly edits interviews for time considerations. Legal experts say Trump has weak grounds to sue given 60 Minutes past practices. But the Trump suit claims the editing violates Texas business law that makes it illegal to engage in 'misleading, or deceptive acts or practices in the conduct of any trade or commerce.'
In addition to her evaporating wealth, Redstone faces a steep tax bill — as much as $200 million — stemming from the ownership stake she inherited from her father after he died in 2020.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
CNBC
25 minutes ago
- CNBC
ETFs and corporate treasuries should support bitcoin's uptrend in June as tariff uncertainty lingers
In the tug of war between the macroeconomic and crypto adoption stories, blockchain adoption is starting to taking over the bitcoin narrative. Institutions and corporations combined to drive up bitcoin in May. The cryptocurrency ended the month about 10% higher, its second straight monthly rise, driven by strong inflows into bitcoin exchange-traded funds and continued purchases of bitcoin by corporate treasury departments. Bitcoin ETFs saw $5.6 billion in inflows this month, when the number of bitcoin held by public companies grew 4% to $85.6 billion, according to Bitcoin Treasuries . Investors expect the trend to continue in June, and to benefit bitcoin's long-term performance. The uncertainty of President Donald Trump's tariff policy has so far helped bitcoin more than hurt it – the initial sell-off in risk assets after Trump's tariffs were unveiled in April pulled it down to about $76,000, but bitcoin still finished the month up 13.5%. That said, analysts say not to dismiss the downside risk just yet. "The fact that significant policy adjustments can be made at any time, especially around tariffs, makes near-term pricing incredibly difficult," said Chris Rhine, head of liquid active strategies at Galaxy Digital. "The cumulative weight of this policy uncertainty will likely lead to a sharper slowdown in economic activity, particularly in consumer-driven end markets, increasing the likelihood of monetary policy support." In other words, lower interest rates. 1M mountain Bitcoin (BTC) in May Investors have cheered crypto's seeming decoupling from equities in recent weeks, benefiting when there's liquidity in the market and stocks do well, but also in risk-off scenarios where crypto has provided a haven from uncertainty. That best-of-both-worlds scenario has helped support bitcoin's price and bring new buyers to the market. Unfortunately, that dynamic hasn't been meaningfully tested yet, said Federico Brokate, head of U.S. business at 21Shares, a financial technology company focused on providing access to cryptocurrency investments through exchange-traded products. "The macro story is still very important," Brokate said. "If we continue to see that in June, that's going to be very bullish for the asset, price wise. We haven't seen this play out over a sustained period of time, so this is something that a lot of us will be paying attention to over the next few weeks." After reaching a new all-time high on May 22 of $111,999, bitcoin retreated to the $104,000 level Friday after Trump reignited fears of a trade war with China . In a social media post, the president claimed China "violated" its current trade agreement with the U.S., one day after Treasury Secretary Bessent said in a Fox News interview that U.S.-China trade talks "are a bit stalled." The shadow of unpredictability aside, investors are optimistic about bitcoin's direction, primarily monitoring bitcoin ETF flows, corporate treasury announcements and regulatory developments. After an early block, the 'GENIUS' Act, short for Guiding and Establishing National Innovation for U.S. Stablecoins, advanced to the Senate on May 19 and is likely to come up for a floor vote in early June. Whether it passes with bipartisan support or fails to pass, the outcome will likely have an impact on sentiment around bitcoin, Galaxy's Rhine said. Wells Fargo expects "a difficult road ahead" in light of a separate bill to regulate stablecoins in the House, analyst Andrew Bauch said in a note this week. From a technical standpoint, looking solely at price charts, bulls are likely to hold the reins in June, according to Tracy Jin, chief operating officer of crypto exchange MEXC. "[They'll] aim to defend the $109,000 support level, a potential target for downward pressure from hedge funds holding put options," she said. With a new record behind it, bitcoin has now opened the door to the $113,000 to $115,000 zone. That represents "serious resistance on the way to a strategic target of $130,000, Jin said, adding: "If the current pace is maintained and the $115,000 level is successfully overcome, the price may reach $130,000 in June."
Yahoo
29 minutes ago
- Yahoo
Qudian First Quarter 2025 Earnings: EPS: CN¥0.90 (vs CN¥0.38 loss in 1Q 2024)
Revenue: CN¥25.8m (down 54% from 1Q 2024). Net income: CN¥150.1m (up from CN¥73.6m loss in 1Q 2024). EPS: CN¥0.90 (up from CN¥0.38 loss in 1Q 2024). Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit. All figures shown in the chart above are for the trailing 12 month (TTM) period Qudian shares are up 4.6% from a week ago. What about risks? Every company has them, and we've spotted 1 warning sign for Qudian you should know about. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Yahoo
39 minutes ago
- Yahoo
Trump fast-tracks Utah uranium mine, but industry revival may wait for higher prices
SALT LAKE CITY (AP) — In the southeastern Utah desert famous for red rock arches and canyon labyrinths, the long-dormant uranium mining industry is looking to revive under President Donald Trump. Hundreds of abandoned uranium mines dot the West's arid landscapes, hazardous reminders of the promise and peril of nuclear power during the Cold War. Now, one mine that the Trump administration fast-tracked for regulatory approval could reopen for the first time since the 1980s. Normally it would have taken months, if not years, for the U.S. Bureau of Land Management to review plans to reopen a project like Anfield Energy's Velvet-Wood mine 35 miles (56 kilometers) south of Moab. But the bureau's regulators green-lit the project in just 11 days under a 'national energy emergency' Trump has declared that allows expedited environmental reviews for energy projects. More permits and approvals will be needed, plus site work to get the mine operating again. And the price of uranium would have to rise enough to make domestic production financially sustainable. If that happens, it would mean revival — and jobs — to an industry that locally has been moribund since the Ronald Reagan era. 'President Trump has made it clear that our energy security is national security," Interior Secretary Doug Burgum said in announcing the fast-tracking policy in April. 'These emergency procedures reflect our unwavering commitment to protecting both.' More fast approvals appear likely. Trump's order also applies to oil, gas, coal, biofuel and hydropower projects — but not renewable energy — on federal lands. Conditions are ripe for more U.S. uranium mining Global uranium prices are double what they were at a low point seven years ago and, for the past year, the U.S. has banned uranium imports from Russia due to that country's 2022 invasion of Ukraine. More domestic mining would address a major imbalance. The U.S. imports about 98% of the uranium it uses to generate 30% of the world's nuclear energy. More than two-thirds of U.S. imports come from the world's top three uranium-mining countries: Canada, Australia and Kazakhstan. Less government regulation won't spur more U.S. uranium mining by itself. The market matters. And while spot-market prices are up from several years ago, they're down about a third from their recent high in early 2024. While some new uranium mining and processing projects have been announced, their number falls far short of a surge. That suggests prices need to rise — and stay there — for a true industry revival, said John Uhrie, a former uranium executive who now works in the cement industry. 'Until the price goes up dramatically, you're not going to be able to actually put these places into operation,' Uhrie said. 'You need significant capital on the ground.' Still, the industry is showing new life in the Southwest. Anfield Energy, a Canadian company, also looks to reopen the Shootaring Canyon uranium mill in southern Utah near Glen Canyon National Recreation Area. It closed in the early 1980s. A uranium mill turns raw ore into yellowcake, a powdery substance later processed elsewhere into nuclear fuel. Anfield officials did not return messages seeking comment on plans to reopen the mill and the Velvet-Wood mine. Energy Fuels, another Canadian company which ranks as the top U.S. uranium miner, opened the Pinyon Plain mine about 10 miles (16 kilometers) from the Grand Canyon in late 2023. And just off U.S. 191 in southeastern Utah is a hub of the industry, Uranium Fuels' White Mesa mill, the country's only uranium mill still in operation. In Moab, uranium has a long — and mixed — legacy These days, Moab is a desert tourism hot spot bustling with outdoor enthusiasts. But the town of 5,200 has a deeper history with uranium. Nods to Moab's post-World War II mining heyday can been spotted around town — the Atomic Hair Salon isn't just named for its blowout hairstyles. The biggest reminder is the Moab Uranium Mill Tailings Remedial Action project, a 480-acre (194-hectare) site just outside town. The decades-long, $1 billion U.S. Department of Energy effort to haul off toxic tailings that were leaching into the Colorado River upstream from the Grand Canyon and Lake Mead should wrap up within five more years. That mill's polluting legacy makes some Moab residents wary of restarting uranium mining and processing, especially after the Trump administration cut short their ability to weigh in on the Velvet-Wood mine plans. 'This was a process I would have been involved in,' said Sarah Fields, director of the local group Uranium Watch. 'They provided no opportunity for the public to say, 'You need to look at this, you need to look at that.'" Grand Canyon Trust, a group critical of the Pinyon Plain mine as a danger to groundwater, points out that the U.S. nuclear industry isn't at risk of losing access to uranium. 'This is all being done under the assumption there is some energy emergency and that is just not true,' said Amber Reimondo, the group's energy director. Supply and demand will decide uranium mining's future Hundreds of miles to the north, other nuclear energy projects point to the U.S. industry's future. With Bill Gates' support, TerraPower is building a 345-megawatt sodium-cooled fast reactor outside Kemmerer in western Wyoming that could, in theory, meet demand for carbon-free power at lower costs and with less construction time than conventional reactor units. Meanwhile, about 40% of uranium mined in the U.S. in 2024 came from four Wyoming 'in-situ' mines that use wells to dissolve uranium in underground deposits and pump it to the surface without having to dig big holes or send miners underground. Similar mines in Texas and Nebraska and stockpiled ore processed at White Mesa accounted for the rest. None — as yet — came from mines in Utah. Powering electric cars and computing technology will require more electricity in the years ahead. Nuclear power offers a zero-carbon, round-the-clock option. Meeting the demand for nuclear fuel domestically is another matter. With prices higher, almost 700,000 pounds of yellowcake was produced in the U.S. in 2024 — up more than a dozen-fold from the year before but still far short of the 32 million pounds imported into the U.S. Even if mining increases, it's not clear that U.S. capacity to turn the ore into fuel would keep pace, said Uhrie, the former uranium mining executive. "Re-establishing a viable uranium industry from soup to nuts — meaning from mining through processing to yellow cake production, to conversion, to enrichment to produce nuclear fuel — remains a huge lift," Uhrie said. ___ Gruver reported from Cheyenne, Wyoming. Mead Gruver And Hannah Schoenbaum, The Associated Press
