Paramount Says Trump Settlement Doesn’t Include PSAs

Paramount Global is disputing media reports that the company’s $16 million settlement with President Donald Trump over CBS’ Kamala Harris “60 Minutes” interview includes an agreement to run public service announcements on its networks.

An individual close to the settlement negotiations told TheWrap that there’s anticipation there could be an additional “low-to-mid eight figure allocation” in the future that would be set aside for public service announcements and advertisements that support “conservative causes,” putting the total sum closer to $30 million.

Fox Business’ Charlie Gasparino reported that Skydance, who would take over Paramount pending FCC approval of its $8 billion merger, had agreed to run the PSAs.

But Paramount said that, contrary to this reporting, its settlement “does not include PSAs or anything related to PSAs.”

“Paramount has no knowledge of any promises or commitments made to President Trump other than those set forth in the settlement proposed by the mediator and accepted by the parties,” a spokesperson for the media giant said in a statement on Wednesday. “The material terms of the settlement agreement in principle are those disclosed by us yesterday.”

Representatives for Trump and Skydance declined to comment.

On Tuesday evening, the media giant revealed the terms of the $16 million agreement, which covers legal fees and other costs, as well as a donation that will be allocated to a “future presidential library.”

Paramount also said that “in the future, ’60 Minutes’ will release transcripts of interviews with eligible U.S. presidential candidates after such interviews have aired, subject to redactions as required for legal or national security concerns.”

Additionally, the company emphasized that the settlement does not include any statement of apology or regret from CBS or “60 Minutes” and that Trump will not receive any money directly or indirectly and will release all of his claims, including those of defamation.

In a statement following the settlement, Trump’s legal team called it a “win for the American people.”

“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 spokesperson for Trump’s legal team said in a statement. “CBS and Paramount Global realized the strength of this historic case and had no choice but to settle.”

Meanwhile, Paramount co-CEO George Cheeks defended the decision to settle during the company’s annual meeting on Wednesday morning, as insiders at CBS, legal experts and federal and California Senate lawmakers have all said that the suit was frivolous and had no merit.

“Companies often settle litigation to avoid the high and somewhat unpredictable cost of legal defense, the risk of an adverse judgment that could result in significant financial as well as reputational damage, and the disruption to business operations that prolonged legal battles can cause,” Cheeks said during a Q&A session. “Settlement offers a negotiated resolution that allows companies to focus on their core objectives, rather than being mired in uncertainty and distraction.”

While many observers viewed a settlement of Trump’s lawsuit as the final hurdle to clearing the Skydance deal for regulatory approval, both Paramount and FCC chairman Brendan Carr have said the settlement talks were unrelated to the agency’s review. The review is required due to a transfer of broadcast licenses.

Carr has warned that “all options remain on the table” in the agency’s ongoing investigation into alleged “news distortion” related to the Harris interview, including potentially revoking CBS’s broadcast license if the network is found to have violated the agency’s public interest standard.

The deal, which executives have said would close in the first half of 2025, is poised to trigger its second automatic 90-day extension next week, which would push the closing deadline to Oct 6. After that, both sides have the option of terminating the merger, which would not result in Paramount being on the hook for the agreement’s $400 million breakup fee.

When asked by reporters last month whether he sees the agency’s review being resolved soon, Trump replied: “I hope so. Ellison’s great, he’ll do a great job with it.”

While Trump’s lawsuit is behind them, Sens. Bernie Sanders, Elizabeth Warren and Ron Wyden had previously issued a warning to Paramount controlling shareholder Shari Redstone that reaching a settlement in exchange for regulatory approval could violate federal anti-bribery laws.

Along with the warning, the trio asked Redstone to answer nine questions by June 2, including if Paramount believes the case was without merit, if company leaders discussed settling in order to smooth things over for the Skydance merger, if “60 Minutes” made changes to its programming with that in mind and if further such changes are coming.

Legal experts who previously spoke to TheWrap didn’t rule out legal action due to a settlement, but have dismissed the notion of bribery charges as a “non-case.” 

On Wednesday, Warren said that Paramount has refused to answer the trio’s inquiry. She said the settlement a “could be a bribery in plain sight” and demanded a “full investigation” into the matter. She added that she plans to introduce new legislation to “rein in corruption through presidential library donations.”

“The Trump administration’s level of sheer corruption is appalling and Paramount should be ashamed of putting its profits over independent journalism,” Warren’s statement concluded.

Sanders similarly knocked the settlement, arguing it sets “an extremely dangerous precedent in terms of both the First Amendment and government extortion” and will “only embolden Trump to continue attacking, suing and intimidating the media which he has labeled ‘the enemy of the people.’”

“It is a dark day for independent journalism and freedom of the press — an essential part of our democracy. It is a victory for a president who is attempting to stifle dissent and undermine American democracy,” the statement added.

In addition to the scrutiny from federal lawmakers, the California State Senate has also launched an investigation into the matter and invited former “60 Minutes” executive producer Bill Owens and former CBS News president Wendy McMahon to testify.

Paramount’s settlement comes after Disney previously paid $15 million to settle a defamation lawsuit Trump brought against ABC News and star anchor George Stephanopoulos. Meta also paid $25 million to settle Trump’s lawsuit about being kicked off Facebook and Instagram after the attack on the Capitol on Jan. 6, 2021.