Shari Redstone’s Paramount received an unusual assist to settle its controversial lawsuit with President Trump, which should now clear the way for its long-awaited sale to independent studio Skydance, On The Money has learned.
Skydance boss David Ellison, the son of Trump friend and billionaire Oracle co-founder Larry Ellison, stepped up and agreed that once he takes control of the Tiffany Network, currently part of Redstone’s flailing media empire, it will run between $15 million and $20 million of public service ads to promote causes supported by the president, a source with knowledge of the negotiations said.
“There is an anticipation of a mid-eight-figure sum that will be allocated by the network to PSA advertisements and other broadcast transmissions that support conservative causes supported by President Trump,” the source said.
With the inclusion of the PSAs, the total settlement would amount to more than $30 million. Thanks to its unusual structure with the additional money supplied by Ellison and not current management, the Paramount board and Redstone can sidestep one of their main roadblocks to settling the lawsuit: Fear of bribery charges.
Paramount denied any knowledge of a “side deal.”
“Paramount knows nothing about the alleged side deal between Trump\Ellison, had absolutely nothing to do with it, nor was it a part of what the board approved, and the mediator sanctioned.” a spokesperson told On The Money.
A Skydance spokeswoman had no comment on the matter.
Late Tuesday, current management agreed to pay $16 million to settle the Trump suit claiming the president’s 2024 presidential campaign was damaged by biased editing of a “60 Minutes” interview with his Democratic challenger Kamala Harris.
As On The Money reported last week, the younger Ellison was bragging that a settlement was in the cards, allowing him to take over Paramount this summer.
The bribery issues arose because Redstone is in desperate need of cash since inheriting the Paramount media empire from her late father, the media mogul Sumner Redstone and the settlement of the lawsuit is inextricably tied to the deal getting completed since Trump’s regulators must approve the merger.
Since Redstone would receive around $2 billion once the deal is done, any sizable payment could be seen as a bribe to get the Federal Communications Commission’s green light.
Now, any bribery charges become nearly impossible to prove because Paramount is not party to any side deal between Ellison and Trump. In fact, Ellison isn’t party to the suit in any way. Rather there is just an “expectation” that he will make good on his promise for the PSAs, people close to the deal say.
Trump administration officials have denied that there was a quid pro quo between the lawsuit and FCC approval.
While the agency opened an investigation into CBS over the same issues, namely that the “60 Minutes” violated the FCC’s public interest rules demanding unbiased new programming over public airwaves, as opposed to cable, Trump officials say the inquiry was prompted by a separate complaint filed with regulators.
Cord cutting and other industry changes has decimated Paramount’s bottom line, and Redstone’s once formidable fortune, which she sought to preserve by selling the company to Skydance in an $8 billion deal. Then came the controversy over the lawsuit – and the possibility of a settlement with Trump and its ties to Redstone’s pending big payday– that has roiled CBS.
In May, CBS News CEO Wendy McMahon resigned, saying, “It’s become clear that the company and I do not agree on the path forward.” The month before, “60 Minutes” boss Bill Owens quit, citing increased pressure from senior management over his programming.
Media watchdogs have condemned the network for allegedly selling its journalism for money.
Congressional Democrats were threatening hearings on the matter and the Paramount board could have faced investigations from Trump-hating Democratic state AGs. Conservatives have complained about news bias at CBS for decades.
That said, giving such investigations teeth is the dubious nature of the Trump lawsuit, namely that “60 Minutes” deceptively edited the Harris interview to make her sound smarter during the height of the 2024 campaign, and he was damaged in the process.
Since Trump won the election, there are no damages, legal experts countered.
Trump initially sued for $20 billion but his legal team signaled it was looking to settle for far less.
“With this record settlement, President Donald J. Trump delivers another win for the American people as he, once again, holds the Fake News media accountable for their wrongdoing and deceit,” a legal spokesman for Trump told On The Money.
“CBS and Paramount Global realized the strength of this historic case and had no choice but to settle. President Trump will always ensure that no one gets away with lying to the American People as he continues his singular mission to Make America Great Again.”
The president also sued Disney’s ABC for defamation and received $16 million and an apology after “This Week” anchor George Stephanopolous misstated the facts surrounding a civil judgment against Trump.
Credit: Source link
