California Senators Seek Inquiry on Paramount-Trump Settlement Talks
California State Senators Call for Hearing on Paramount Global Settlement Talks with President Trump
Two California state senators, Tom Umberg and Josh Becker, have raised concerns about the ongoing settlement talks between Paramount Global and President Trump. They believe that such a deal could potentially amount to a bribe in exchange for regulatory approval for Paramount’s merger with Skydance Media.
In a letter sent on Friday, the senators expressed their worries that a settlement could violate state and federal laws, as well as have a negative impact on investigative and political journalism. They have even invited Wendy McMahon and Bill Owens, top CBS News executives who recently resigned, to testify in the hearing.
The senators emphasized that they are in the early stages of an inquiry aimed at ensuring that media enterprises compete based on content and quality, rather than on influence, capitulation, or political appeasement.
The letter was initially reported by Semafor, shedding light on the senators’ concerns regarding the potential implications of a settlement between Paramount and President Trump.
The legal battle between Trump and CBS began last October when Trump sued the network for $10 billion, alleging consumer fraud due to the editing of a “60 Minutes” interview with Kamala Harris. Despite CBS’s argument that the lawsuit lacks merit, Paramount’s controlling shareholder, Shari Redstone, has reportedly been pushing for a settlement to expedite the pending $8 billion Skydance merger. Trump has since increased his demand to $20 billion in damages.
Recent reports from The Wall Street Journal suggest that Paramount is willing to offer up to $15 million to settle the lawsuit, although Trump is holding out for a higher amount. This development has raised concerns among Democratic U.S. senators Elizabeth Warren, Ron Wyden, and Bernie Sanders, who have suggested that a potential quid pro quo in the settlement talks could violate federal bribery laws.
Umberg, a former federal prosecutor, and Becker, both Democrats, argue in their letter that a settlement would also violate California’s unfair competition law and leave board members vulnerable to shareholder lawsuits. They emphasize that Paramount’s capitulation could undermine the essential pillars of a liberal democracy, namely a free press and an impartial regulatory system based on the rule of law.
The resignations of Owens, the executive producer of “60 Minutes,” and McMahon, the president of CBS News, have further fueled concerns about interference from Paramount’s corporate leadership. The senators have invited them to testify as “friendly witnesses” to provide insights into the settlement talks and potential resistance from the news division.
While some ethics experts acknowledge the challenges of proving a bribery charge in court without explicit evidence of a quid pro quo, the senators remain committed to investigating the matter further to uphold the integrity of the media industry and regulatory processes.
