Paramount Considered Financial Compensation for Trump Lawsuits to Secure Merger Consent
It seems like yet another instance where a major corporation is bowing down to President Trump, as reported by The New York Times. This time, it's Paramount, the owner of CBS News, allegedly looking to settle a lawsuit filed by Trump over an "edited" "60 Minutes" interview with Vice President Kamala Harris that he claims was misleading.
Following ABC News and Meta, Paramount is the latest company to consider settling with Trump before heading to court. Meta, in a move that stunned many, decided to pay the president $25 million to drop the case against them for banning Trump from Facebook after the Capitol riots. Mark Zuckerberg, Meta's CEO, has been a vocal supporter of Trump since his election victory, despite their rocky relationship during his first term. Interestingly, Meta is facing an antitrust trial in April over its acquisition of Instagram, a case that was initiated by the Biden administration.
The lawsuit filed against Paramount hinges on an untested legal theory, claiming that CBS violated Texas law, which prohibits deceptive trade practices. CBS promoted a different answer from Vice President Harris in the "Face the Nation" segment than the one presented in the full "60 Minutes" interview due to time constraints. News organizations often edit interviews for editorial purposes, a practice protected by the First Amendment.
CBS's lawyers believe Trump's standing to file a lawsuit in Texas is "tenuous at best," and the president has a history of losing lawsuits against media outlets. However, his vindictive nature and the power of the federal government could impact the outcome. During his first term, the Department of Justice attempted to block the merger of AT&T and Time Warner, demanding that CNN be sold off.
Paramount is in the process of merging with film studio Skydance, which could result in billions of dollars in proceeds for the company's controlling shareholder, Shari Redstone. The FCC's new chairman, appointed by Trump, has requested an unedited transcript of the Harris interview, raising questions about the merger process.
In conclusion, corporations are lining up to appease Trump, hoping for his favor or access to public funds and contracts. While it will undoubtedly cause reputational damage for the news outlets being "thrown under the bus," Trump benefits from the narrative, feeding into his "woke media" rhetoric. It's all about business, as they would say.
Paramount's potential settlement with Trump could be seen as a strategic move in the realm of future tech negotiations, as the president has shown influence over major tech corporations. The FCC's chairman, appointed by Trump, has sought an unedited Harris interview transcript, potentially impacting Paramount's merger with Skydance.
