President Donald Trump recently expressed his endorsement, injecting his unmistakable influence towards David Ellison, CEO of Skydance Media, to helm over the struggling Paramount Global. This approval, however, hinges on a $20 billion lawsuit against CBS due to a contentious video edit. The lawsuit needs resolution before Trump throws his full support behind the merger, leaving the situation precarious and open to significant negotiations.
Trump lavishly praised Ellison, connected to none other than Larry Ellison, Oracle’s esteemed co-founder. The former president, during a press interaction, admired Ellison’s capabilities, stating he would excel at the task at hand. This support, along with indications last week from Trump’s lawyers suggesting active settlement discourse, may pave the way for a resolution.
The pair, previously spotted together at an Ultimate Fighting Championship (UFC) event in New Jersey this month, have been reportedly seen together at a Miami UFC event earlier. Trump’s warm accolades towards Ellison follow after a ‘heated exchange’ between the two at the UFC event, ended by a firm handshake, according to reports. Perhaps the tensions arose from their previous outing where their interaction was minimal.
While Paramount and Skydance are on the brink of merger approval, their execution requires the green light from the Federal Communications Commission (FCC) due to CBS’s broadcast license transfer. With Trump’s persistent lawsuit ceaselessly looming over CBS, the acceptance from the FCC seems in limbo. This holdup has triggered speculative chatter among leftist academics and journalists who suggest the delay is designed for the Trump lawsuit settlement.
The lawsuit mines its origin from an interview perceived as manipulated in favor of none other than Kamala Harris. Trump alleges that CBS deceptively edited the information to belittle him and bolster Harris’s image. Despite the baseless allegations and CBS’s efforts to get the lawsuit dismissed, Trump staunchly fights for its relevance, citing ‘mental anguish’ from the interview.
As part of this debacle, the laughable claim from the former president alleges that Kamala’s incoherent response to a question about Israel was deceptively handled. He contends CBS extracted the answer entirely and replaced it with a different response. Media insiders, while refuting these claims, did mention that the timing was questionable given Harris’s notable struggles in articulating arguments spontaneously.
Amidst this controversy, the pressing issue lies with the static progress on the FCC’s review of the Skydance deal due to the pending lawsuit settlement. This standstill can potentially jeopardize the deal due to a concatenation of deadlines. Concurrently, reports suggest that Paramount’s board agreed to cough up to $20 million to close the lawsuit.
However, the news division was rattled by the proposal of drawing a settlement with Mr. Trump, leading to tensions with high-ranking executives. Consequently, in April, ’60 Minutes’ producer Bill Owens was forced out under the pretense of resignation, while Wendy McMahon, Chief Executive of CBS News and Stations, stepped down in May as she disagreed with the future course proposed by her superiors.
Meanwhile, Trump seemed to delight in these resignations, taunting, ‘They’re all getting fired.’ The sequential exit of McMahon and Owens from CBS News tends to imply that Trump’s lawsuit may be approaching an agreement. However, no official announcement has been made thus far.
Distinct deadlines loom menacingly over the Skydance deal, making the lawsuit settlement increasingly urgent. July 2 is the marked date for Paramount’s new board members, who would call for a settlement if none transpires prior to the election. Simultaneously, Paramount faces a barrage from Democrats and left-leaning factions warning against a settlement, labeling it nothing short of a ‘bribe’ to secure approval for the Skydance deal from the FCC.
Brendan Carr, the FCC chairman appointed by Trump, maintains that the lawsuit and his agency’s review of the Skydance deal are separate matters. Nevertheless, fierce democratic senators, like Bernie Sanders, Elizabeth Warren, and Ron Wyden, openly express their skepticism. These senators fired a warning shot to Shari Redstone, Paramount’s non-executive chairwoman, cautioning that a settlement could breach federal anti-bribery laws.
Bracing for potential legal danger, Paramount’s board harbors concerns over the lawsuit settlement possibly appearing as a bribe. By July 7, without FCC approval for the deal, the final deadline of October 7 activates, after which the deal would be null and void. In such case, the fallout could see Redstone paying a staggering $400 million kill fee.
Despite the FCC’s typical 180-day timeframe for approving deals, the Skydance agreement has already passed day 216 without conclusion. The question remains as to whether this institution, that prides itself on independence, will successfully close the deal before the deadline looms dangerously close, despite Trump’s predictable meddling in the affairs of independent agencies and his blatant support of Ellison’s takeover.