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A mediator has suggested Paramount pay Donald Trump about $20mn to settle the US president’s lawsuit against CBS News as the two sides inch closer to a deal.
The potential Paramount settlement would include a $17mn donation to Trump’s presidential library as well as millions of additional dollars in legal fees and public service announcements on its television channels to combat antisemitism, according to two people familiar with the matter.
Paramount executives have been concerned about shareholder lawsuits if they were to pay Trump significantly more than other companies who have found themselves in the crosshairs of the US president. The Wall Street Journal first reported on the proposal.
Disney in December donated $15mn to Trump’s presidential library, plus an extra $1mn in legal fees, to settle a lawsuit he had waged against ABC News.
Trump alleges CBS’s flagship 60 Minutes news programme defamed him by deceptively editing an interview with his political opponent Kamala Harris last year. He is seeking $20bn in damages. CBS’s lawyers say Trump’s lawsuit is “meritless”, but Paramount’s board began mediation talks with Trump’s team in April.
The situation has roiled the CBS newsroom. Journalists have voiced their concerns that CBS’s owners are capitulating to the White House, and some senior leaders have quit.
The legal battle comes as Paramount awaits approval from the Trump administration for its merger with the Hollywood studio Skydance. Brendan Carr, chair of the Federal Communications Commission, has been reviewing the deal for several months.
US Senators including Bernie Sanders have warned Paramount that settling the CBS lawsuit in exchange for clearing the path for the merger could be considered illegal bribery.
Carr denies the CBS lawsuit has affected his deliberation over Paramount’s Skydance deal. But Paramount executives believe the two processes are intertwined.
Paramount declined to comment. The White House did not immediately respond to a request for comment.