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The Guardian
4 days ago
- Business
- The Guardian
From 60 Minutes to Colbert, it's been a dark time for CBS. But there's a ray of hope
The past few weeks have brought a torrent of bad news for those who care about CBS News – the home of the legendary Walter Cronkite and a great deal of investigative journalism over many decades. Most notably, the network's parent company, Paramount Global, capitulated to the Trump administration, unnecessarily – and wimpily – settling a lawsuit by paying $16m, purportedly for a future presidential library. Trump had sued over a story on 60 Minutes, the network's flagship program, claiming it was deceptively edited to favor his then-rival for the presidency, Kamala Harris. After the settlement was announced, Trump crowed that the network had 'defrauded the American people' and was desperate to settle; he also claimed that another $20m in advertising and programming was also coming his way. Days later, another troubling sign. The network decided to dump The Late Show With Stephen Colbert, the top-rated show on late-night television, whose host has been relentlessly critical of Trump. Network bosses claimed the move was financial, since the show was losing money. But it wasn't hard to connect the dots and see this as part of an all-out effort to appease the president. The Democratic senator Elizabeth Warren called for answers in a Variety op-ed, asking: 'Are we sure that this wasn't part of a wink-wink deal between the president and a giant corporation that needed something from his administration?' That 'something' is federal clearance for an $8bn merger between Paramount and another giant media corporation, Skydance. (The latter company is doing its kowtowing part, promising to 'evaluate any complaints of bias' at CBS News, appoint an ombudsman to keep watch, and ensure there are no diversity, equity and inclusion programs at Paramount. The proposed merger got approval on Thursday from the FCC, which means that it's essentially a done deal.) Colbert's on-air commentary on the settlement was brutal: 'This kind of complicated financial settlement with a sitting government official has a technical name in legal circles. It's 'big, fat bribe'.' Could it be a complete coincidence that The Late Show was canceled three days later? Amid all this, one positive development this week shone through like a wan blade of light. A new executive producer for 60 Minutes – the top editorial role – got the nod. To the relief of many there, Tanya Simon is no outsider who might have been tapped to make the show more Trump-friendly. Simon has deep roots at the revered program – a 25-year veteran of 60 Minutes, she is also the daughter of the late CBS correspondent Bob Simon. She has been the acting executive producer since the previous executive producer, Bill Owens, resigned under pressure, saying he felt he no longer had the full editorial independence he had always enjoyed. Her appointment, of course, doesn't mean no political pressure will be exerted from corporate bosses above her, who seem to be under Trump's sway. 'There is great fear about what comes next,' one CBS News staffer told CNN earlier this month. Simon's appointment offers at least a modest measure of reassurance. She 'understands what makes '60 minutes' tick,' said the news division's president, Tom Cibrowski, in a memo to staff. She's also the first woman, in the show's nearly six-decade history, to be at the helm. If the choice had been a right-leaning newcomer, it's a good bet that top quality talent like Scott Pelley – a former chief White House correspondent and a former anchor of the CBS Evening News – would have quickly headed for the door. As for the future of CBS, once admired enough to be dubbed the Tiffany Network, the outlook is mixed. 'I know that the C in CBS stands for Columbia, but … it ought to be called the Contradiction Broadcasting Network,' wrote Philadelphia Inquirer columnist Will Bunch. That's always been true, he argued, given the bright journalistic legacy of Cronkite and Edward R Murrow along with some ugly chapters in the distant past. That includes the time when – under fire from the FBI director J Edgar Hoover in the late 1940s – the network demanded that all its employees sign a loyalty oath to the US government. When it comes to integrity, that history of contradiction is bad enough. Capitulation, though, is far worse. And given recent events, it's easy to make the case that CBS – or, more accurately, its parent company – deserves that acronym even more. Margaret Sullivan is a Guardian US columnist writing on media, politics and culture
Yahoo
09-07-2025
- Business
- Yahoo
Media Companies Like Paramount Should Think Twice Before Settling With Trump
This article is part of TPM Cafe, TPM's home for opinion and news analysis. Paramount Global, which owns CBS News, recently made a perilous decision to settle the lawsuit that Donald Trump brought against them last year. Trump's suit asserted that CBS' 60 Minutes illegally edited a Kamala Harris interview in order to hurt his chances in the 2024 presidential race. Before settling, Paramount validly argued Trump's legal theories were meritless and violated the company's First Amendment rights. Yet the media conglomerate settled the suit for $16 million, which it reportedly will pay toward Trump's presidential library plus other costs, although Trump asserted that the settlement is worth double that sum. The settlement decision by Paramount's board of directors carries huge legal and reputational risks — including potential bribery charges — while degrading the independent investigative journalism Americans rely on. Many legal experts agreed from the beginning that Paramount had a strong defense, citing constitutional protections to make editorial decisions. But the company's choice to settle reportedly appears to have hinged on an unrelated $8 billion merger with Skydance Media. If the Federal Communications Commission (FCC), led by Trump ally Brendan Carr, doesn't approve this merger by October, the deal could fall apart and board chair Shari Redstone could lose a reported $2 billion payout. While Trump's lawyers and Carr deny the lawsuit is related to these FCC proceedings, Paramount staff appeared to see a link, as did Trump himself. And as Paramount's board struggled with the prospect of facing bribery charges if it settled the suit, internal pressures for CBS News to provide more favorable coverage of Trump sparked major internal discord, resulting in two high-profile news division resignations. Paramount found itself in a tough situation, no doubt. But the grave risks of settling with Trump are bad for the business, its shareholders, and its employees — and it represents a dangerous sign for democracy. These stakes are clear in the potential legal risks Paramount is still facing post-settlement. First, three U.S. senators — Elizabeth Warren (D-MA), Bernie Sanders (I-VT), and Ron Wyden (D-OR) — warned Redstone in a May 19 letter that under federal law, paying Trump to help finalize merger approval could potentially be bribery of a public official. Such a charge has a five-year statute of limitations. The senators suggested that any 'scheme to curry favor with the Trump administration' compromises journalistic independence and raises corruption concerns. Immediately after the settlement, Wyden reupped these issues and asked state prosecutors to pursue criminal charges, while Warren called for an investigation. State-level problems have surfaced, too. In California, two powerful senators who chair relevant committees already launched an inquiry, inviting two former CBS News executives to testify. The lawmakers suggested a settlement could violate California's laws against, for example, unfair competition and misuse of corporate funds, while penalizing competitors who resist political interference, distorting the media marketplace, and chilling the investigative journalism Californians depend on. On top of that, Paramount's shareholders have already threatened legal action. The nonprofit Freedom of the Press, which owns Paramount stock, promised to sue the company if it settled with Trump and recently hired two powerhouse lawyers in preparation. On June 5, the nonprofit told Paramount's board a settlement could cause 'catastrophic' harm to the company and destroy shareholder value. They also said a settlement could illegally breach the board's duties of care and loyalty to shareholders, constitute bribery, and violate anti-competition laws in several states — which could multiply legal fees and liability. Other long-term hazards abound. For example, a future president could take a very different look at the matter than Trump. A future Congress could hold high-profile hearings and refer the matter for Department of Justice investigation. A future DOJ could investigate potential lawbreaking, including the bribery angle. An FCC under the stewardship of a new chair could also launch investigatory proceedings. And attorneys involved in the settlement could face state disciplinary proceedings or disbarment if there is a finding that they acted illegally or unethically. Aside from the legal risks, the trusted brand of CBS News and its credibility with the American people will likely crater. More broadly, the settlement represents yet another example of independent media companies kowtowing to an administration that appears intent on weakening perceived enemies. As the editorial board of the conservative Wall Street Journal wrote: 'The President is using government to intimidate news outlets that publish stories he doesn't like. It's a low move in a free country with a free press.'
Yahoo
04-07-2025
- Business
- Yahoo
Elizabeth Warren Demands Bribery Investigation as Paramount Settles With Trump
Elizabeth Warren is joining the chorus of backlash against Paramount Global's settlement with President Donald Trump, and she suspects the entire transaction may have been illegal. Reacting to the settlement news on Wednesday, Warren called for an investigation into whether Paramount or the president violated anti-bribery laws with the $16 million settlement after what she called a 'meritless' lawsuit. Specifically, Warren said she and fellow Democratic Senators Bernie Sanders and Ron Wyden are concerned the media corporation may have engaged in 'potentially illegal conduct.' 'With Paramount folding to Donald Trump at the same time the company needs his administration's approval for its billion-dollar merger, this could be bribery in plain sight,' Warren, 76, wrote in a press release. On Tuesday, Paramount, which owns CBS, reached a settlement with President Trump in a lawsuit he filed against the company last fall over a 60 Minutes interview with Kamala Harris. The president alleged that the long-running news series had 'deceptively edited' the interview with Harris to 'tip the scales in favor of the Democratic party.' Trump also called for CBS to lose its broadcasting license over the interview, calling 60 Minutes' reporting on him 'fraudulent beyond recognition.' As part of the settlement, Paramount will donate $15 million to Trump's presidential library and pay another $1 million to cover his legal fees. An apology from the network was not part of the settlement. However, 60 Minutes will have to release the full transcripts of interviews with presidential candidates going forward. Warren took specific issue with the settlement being funneled through Trump's not-yet-existent library, adding in her press release that she plans to introduce new legislation that will 'rein in corruption through presidential library donations.' While legal experts considered the suit largely unwarranted and expected it to be dismissed before the settlement, Paramount may have had a vested interest in making nice with the president, according to multiple reports. The company is currently in the midst of positioning an $8.4 billion merger with Skydance Media, which requires approval from the Federal Communications Commission to continue. Although Paramount has maintained that the settlement is 'completely separate' from its merger with Skydance, the FCC's Trump-appointed chairman has already contradicted that idea. In November 2024, months before he was sworn in, FCC chairman Brendan Carr preemptively told Fox News that he would kill the planned merger over the 60 Minutes debacle. FCC Commissioner Anna Gomez, a Democrat, called the settlement a 'desperate move' that 'marks a dangerous precedent for the First Amendment [and] should alarm anyone who values a free and independent press.' Gomez also called for Paramount's merger to go before a full commission vote instead of being approved by an assigned staff member, which could potentially damage the merger's chances of approval. The close timing of these two events, the lawsuit and Paramount's merger, raised similar questions for Warren about whether the settlement was merely an attempt to secure FCC approval by appealing to the president with a donation. Even before reaching a settlement, Paramount and CBS had received massive blowback for appearing to capitulate to President Trump, from Democratic politicians and its own employees alike. In April, shortly after Paramount announced it would seek a settlement with Trump, longtime 60 Minutes executive producer Bill Owens abruptly resigned, saying he felt he was no longer free to make independent editorial decisions. A month later, CBS News and Stations CEO Wendy McMahon also departed the network. At the time, she told staff in a memo obtained by the Daily Beast, 'It's become clear that the company and I do not agree on the path forward.' After the settlement, The Hollywood Reporter reported that employees at CBS reacted with a 'mix of disgust and relief,' but the stipulation that 60 Minutes would not be forced to apologize for the segment had prevented a 'revolt' among employees. In her statement, Warren said Paramount had 'refused to provide answers to a congressional inquiry' about the lawsuit from Trump, forcing her to open an investigation.
Yahoo
03-07-2025
- Business
- Yahoo
CBS News Legend Dan Rather Blasts Paramount for $16 Million 'Sell-Out' to Donald Trump: 'Sad Day for Journalism'
Dan Rather accused executives at CBS News' parent company of bowing down to extortion from Donald Trump as they attempt to complete a merger 'It's a sad day for journalism,' the 93-year-old remarked in reference to Paramount's $16 million settlement Trump previously sued 60 Minutes for $10 billion in October, accusing them of deceptively editing an interview with former Vice President Kamala HarrisDan Rather blasted executives at CBS News' parent company, Paramount, over their decision to settle a lawsuit with President Donald Trump. The 93-year-old journalist, who had an iconic run on the CBS Evening News and frequently appeared on 60 Minutes, spoke out on Wednesday, July 2, following the news that Paramount had agreed to pay several million dollars to settle a lawsuit with the president. Trump sued CBS News and accused them of deceptively editing former Vice President Kamala Harris' 2024 campaign trail appearance on 60 Minutes, according to reporting by Reuters. After months of back and forth, Paramount agreed on Wednesday to pay $16 million to Trump's future presidential library. The lawsuit initially sought $10 billion in damages, and brought grave concerns about the precedent Paramount would set for all media companies if it ultimately gave into Trump's demands. Notably, a representative for Paramount told Reuters in a statement that "the settlement does not include a statement of apology or regret." As news of the settlement broke, Rather spoke to Variety and delivered a blistering condemnation of what he described as "distortion by the President and a kneeling down and saying, 'yes, sir,' by billionaire corporate owners." 'It's a sad day for journalism,' he said, adding, 'What really gets me about this is that Paramount didn't have to settle.' The reporter noted that settling a lawsuit implies an admission of guilt. CBS News already released an unedited transcript of the Harris interview, and according to Rather, the evidence showed there was no guilt to be had. Additionally, he noted, "Lawyers almost unanimously said the case wouldn't stand up in court.' 'I was disappointed, but I wasn't surprised,' he admitted to the outlet. 'Big billionaire business people make decisions about money. We could always hope that they will make an exception when it comes to freedom of the press, but it wasn't to be." Rather branded the parent company's decision as "a sell-out to extortion by the President," further asking, "Who can now say where all this ends?' 'Trump is now forcing a whole news organization to pay millions of dollars for doing something protected by the Constitution — which is, of course, free and independent reporting," he added. Rather said that it wasn't just media companies that were giving in to Trump. He singled out universities and law firms as other examples, saying, "Now he's extorting what he wants out of news organizations. So when I say, 'Where does this go?' What are the effects on journalism as a whole?' The journalist didn't think all was lost, saying that "Journalism has had its trials and tribulations before" and that, "It takes courage to just soldier on." "I know the people at CBS News, and particularly those at 60 Minutes, they'll do their dead level best under these circumstances. But the question is what this development and the message it sends to us. And that's what I'm trying to concentrate on,' he said. Never miss a story — sign up for to stay up-to-date on the best of what PEOPLE has to offer, from celebrity news to compelling human interest stories. Rather's scathing attack comes a few months after executive producer Bill Owens retired from 60 Minutes in April over similar frustrations with Paramount. Correspondent Scott Pelley addressed Owens' departure in a shocking segment on 60 Minutes that month, implying that the loss came as Paramount was allegedly attempting to soften coverage of controversial topics to gain Trump's favor. The company is in the midst of a merger with the entertainment company Skydance, which will require sign off from Trump's administration to become a reality. 'Bill made sure they were accurate and fair. He was tough that way, but our parent company, Paramount, is trying to complete a merger. The Trump administration must approve it," Pelley said. He continued, adding, 'Paramount began to supervise our content in new ways. None of our stories has been blocked, but Bill felt he had lost the independence that honest journalism requires.' Read the original article on People
Daily Mail
03-07-2025
- Business
- Daily Mail
60 Minutes star tears up over $16M Trump settlement with CBS
The 60 Minutes correspondent whose interview with Kamala Harris sparked a high-profile lawsuit from President Donald Trump had tears in his eyes while addressing colleagues at a meeting following news of the company's decision to settle the case for $16million . During a Wednesday morning meeting with 60 Minutes staff, Bill Whitaker, 73, appeared 'teary-eyed as he spoke about the institution he loves,' Status reported. The meeting, with with CBS News President Tom Cibrowski and interim Executive Producer Tanya Simon, occurred just hours after parent company Paramount agreed to the multimillion-dollar settlement. Trump's lawsuit, seen by many experts as frivolous and sure to fail, claimed that Whittaker's October 2024 interview with Harris ahead of the presidential election was deceptively edited. Whittaker, described as 'quite somber' at Wednesday's meeting, was joined by fellow 60 Minutes correspondents Lesley Stahl and Sharyn Alfonsi in addressing the 'dispirited staff.' The pair expressed 'deep frustration and dismay' at the decision to settle a suit 'widely regarded across the legal community as absurd,' Status reported. The settlement was seen as necessary to complete Paramount's proposed $8billion media merger with Skydance, which requires approval by the Trump administration. Paramount brass had reportedly worried that any large settlement could be considered a bribe. At another meeting the same day, Paramount co-CEO George Cheeks defended the settlement. 'Look, companies often settle litigation to avoid the high and somewhat unpredictable cost of legal defense, the risk of an adverse judgment that could result in significant financial as well as reputational damage and the disruption to business operations that prolonged legal battles can cause,' he said, speaking to investors at Paramount's annual shareholder meeting. 'The concern is what happens next,' one 60 Minutes staffer told Status, of the prospect of shakeups at the network following the merger. 'Is this it? Or [does Skydance] say we are going to bring a new person in and start tinkering around with this show.'
