Two California state senators are calling for a hearing regarding the ongoing settlement negotiations between Paramount Global and former President Donald Trump. They argue that such a settlement could be perceived as a bribe intended to secure regulatory approval for Paramount’s merger with Skydance Media. In a letter sent on Friday, Senators Tom Umberg and Josh Becker raised concerns that this potential deal might violate both state and federal laws while also having a detrimental impact on investigative and political journalism.
The senators have invited Wendy McMahon and Bill Owens, two top executives from CBS News who recently resigned, to testify during the hearing. They emphasized that their inquiry is aimed at ensuring that media companies compete based on content quality rather than political influence or capitulation. This letter was initially reported by Semafor.
The backdrop of this situation involves Trump’s $10 billion lawsuit against CBS, which he filed last October. He claims that the network committed consumer fraud by editing a portion of his “60 Minutes” interview with Kamala Harris. Although CBS has defended itself in court, asserting that the lawsuit lacks merit, reports indicate that Shari Redstone, Paramount’s controlling shareholder, has been advocating for a settlement to help expedite the $8 billion merger with Skydance. Trump later amended his lawsuit to seek $20 billion in damages. According to the Wall Street Journal, Paramount is reportedly willing to settle for up to $15 million, but Trump continues to demand a higher payout.
Earlier this month, three Democratic U.S. senators—Elizabeth Warren, Ron Wyden, and Bernie Sanders—expressed their concerns about the potential for a corrupt quid pro quo, which could violate federal bribery laws. Senator Umberg, a former federal prosecutor, and Senator Becker both highlighted in their letter that a settlement could also breach California’s unfair competition law, exposing board members to potential shareholder lawsuits. They stated, “Paramount’s capitulation would undermine two essential pillars of a liberal democracy: a free press and an impartial, rule-of-law regulatory system.”
Bill Owens, the executive producer of “60 Minutes,” resigned in April, citing tensions with CBS’ corporate leadership at Paramount. Wendy McMahon, the president of CBS News, also stepped down on May 19, attributing her departure to conflicts with Paramount executives. The letter extends an invitation for both to testify as “friendly witnesses,” suggesting they could provide valuable insights into the negotiations and any pushback from CBS News.
The Paramount board received a copy of the letter. Some ethics experts have indicated that proving a bribery charge in court may be challenging, as demonstrating an explicit quid pro quo can be difficult.
This situation raises important questions about the intersection of media, politics, and the law, highlighting the need for transparency and accountability in the industry.
