Paramount and President Trump have taken a significant step in his hefty $20 billion lawsuit against CBS by agreeing to work with a mediator, according to insiders familiar with the decision.
This choice signals that both parties are keen on finding a solution outside the courtroom concerning the controversy over the edited “60 Minutes” interview with Vice President Kamala Harris. While a mediator might pave the way for a settlement, it’s still uncertain if the case will be resolved in that manner.
When approached for comment, Paramount stayed mum. However, Ed Paltzik, President Trump’s attorney, was vocal, stating that the president is committed to seeing this critical matter through until a fair conclusion is reached.
The legal battle erupted days before the 2024 election when Trump accused CBS of editing his opponent’s interview misleadingly. Not long after, Trump expanded the lawsuit to include Paramount as a defendant.
This year, Paramount, which oversees CBS, started exploring settlement options with Trump. However, these negotiations have stirred up tension within Paramount. CBS News employees are fiercely opposed to any settlement. Bill Owens, the executive producer for “60 Minutes,” told his team he refused to apologize, despite reports by The New York Times hinting that settlement talks were ongoing.
This lawsuit has added another layer of complexity to Paramount’s merger plans with Skydance, a burgeoning media company supported by tech titan Larry Ellison. The deal, which would end the Redstone family’s long-standing leadership of Paramount and usher in Ellison and his son David, now faces uncertainty due to the legal squabble.
Media lawyers are wary that a settlement could encourage Trump and his followers to pursue more legal threats against news organizations. Within Paramount, some executives favor settling the lawsuit to avoid the Trump administration potentially blocking or slowing down the Skydance merger. They also see a chance to escape shareholder lawsuits that might arise should Trump win a substantial judgment in court.
Despite that, there are concerns among Paramount executives about the risk of a settlement creating liabilities not typically covered by standard corporate insurance, as shared by a source aware of their worries.
The Wall Street Journal previously highlighted these potential legal complications. A recent federal court filing in Texas outlines the legal proceedings ahead. Both sides must engage in mediation talks before December 20. If they can’t decide on a mediator, they need to request one from the court at least two weeks before the deadline.
CBS has provided a transcript of the Harris interview to the Federal Communications Commission, which was later made public. CBS issued a statement clarifying that the “60 Minutes” broadcast was accurate, with no misleading edits.
David Enrich also contributed to the reporting on this matter.
