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New York Post
3 hours ago
- Business
- New York Post
How secret ‘side deal' helped seal Paramount's $16M settlement with Trump
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. 5 The settlement should clear the way for Shari Redstone's long-awaited Paramount sale to independent studio Skydance. FilmMagic Advertisement 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. Advertisement 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. 5 Skydance boss David Ellison stepped up and agreed that once he takes control of the Tiffany Network, it will run between $15 million and $20 million of public service ads to promote causes supported by the president. AFP via Getty Images 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. Advertisement 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. 5 Current management agreed to pay $16 million to settle President Trump's lawsuit. AP 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. Advertisement 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. 5 Trump accused '60 Minutes' of deceptively editing the Kamala Harris interview to make her sound smarter during the height of the 2024 campaign. 60 Minutes / 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. 5 Cord cutting and other industry changes has decimated Paramount's bottom line. CAROLINE BREHMAN/EPA-EFE/Shutterstock 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. Advertisement '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.
New York Post
6 days ago
- Business
- New York Post
Trump aims for trade deals with key partners in Asia in coming weeks: sources
Remember those simpler times when markets were focused on tariffs instead of war? Well, with the markets starting to look past the 12-day flareup between Israel and Iran, and our involvement in (hopefully) decapitating Tehran's nuclear efforts, tariffs might soon be back on the table for another round of market-induced ruction, On The Money has learned. Team Trump says it's close to announcing a handful of trade deals, my Wall Street sources with contacts in the White House tell me. 4 The White House says they're making headway on trade deals with Japan, as well as South Korea and Vietnam. Jack Forbes/NY Post Design I know we've heard this before without much real progress, but the big ones that the White House says they're making headway on involve Japan, as well as South Korea and Vietnam, these people say. India was thought to be a done deal, but its armed conflict, however brief, with Pakistan threw off the talks with US trade negotiators. That deal could re-emerge but it's not on the list of those that are pending, the sources say. 'They're supposed to be coming up in the next few weeks,' is how one of my Wall Street sources described the current situation. 'India seems to be moving a bit slower. But deals are supposedly coming.' July 9 is a key date. It's when Trump's tariff pause against most trading partners ends. China's tariff pause ends Aug. 12. In the meantime, we could get some more extensions or rushed frameworks, my Wall Street sources suggest. The Japan deal appears most promising since the Trump administration just approved the takeover of US Steel by Japan's Nippon Steel, with the proviso that the White House hold what's known as a 'golden share,' a special category of stock in the new company that gives the US some authority over decision-making. Yes, a little bit of socialism from the alleged free market types in the White House, but it's suggesting a broader trade deal with the Japanese is in the works, my sources say. 4 July 9 is a key date. It's when Trump's tariff pause against most trading partners ends. China's tariff pause ends Aug. 12. In the meantime, we could get some more extensions or rushed frameworks, sources say. Getty Images The impetus behind a deal with Vietnam is that it could be a place where US businesses set up if they leave China, one of our major trade adversaries. Plus, the Trump Organization has looked at investment in the Communist country. The Vietnam War is a distant memory as Hanoi continues integrating capitalism into its economy and seeking closer ties with the US. South Korea, meanwhile, is a long-time ally and the trade talks with the country have been progressing, sources said. Remember, if and when all of the above happens, these won't be official deals, but frameworks much like the one crafted with the UK that sets conditions before various regulatory reviews take place and deals are, as they say, sealed. But they could be a market positive because they should produce levies that are lower than what Trump originally demanded in his 'Liberation Day' tariffs attack against the world on April 2. 4 Trump announced his 'Liberation Day' tariffs on April 2. REUTERS They should also provide US businesses with some clarity on the cost of importing goods from major trading partners. That said, making tariffs the focus could have some negative market consequences since investors have been focused on a possible peace dividend from a defanged Iran. The potentially inflation-inducing costs on many goods consumed by average Americans from tariffs could once again weigh heavily on the economy. Recall how stocks and bonds tanked over fears of inflation and a possible economic slowdown from a tariff-induced price shock. Trump has since paused his tariff regime until deals could be worked out, but the zig-zagging nature of the talks are starting to weigh on business and consumers. 4 Stocks and bonds tanked over fears of inflation and a possible economic slowdown from a tariff-induced price shock. REUTERS Retailers like Walmart, who rely on cheap goods imported from China, have raised prices even as intense trade negotiations between Treasury Secretary Scott Bessent and Beijing continue. The latest consumer confidence numbers sank a bit, another likely indication that costs are being passed on. Fed Chair Jerome Powell has ruled out cutting interest rates until he sees if the tariffs will induce inflation, and presumably on what deals Team Trump is cutting. And it's unclear if those talks are proceeding favorably with what might be the country's most important trade partner given its large consumer base and ability to manufacture stuff that is too costly to build here. That would be China. Even though we are economic and maybe military adversaries, we need each other, and China President Xi Jinping is a tough negotiator. A deal with the European Union, another major trading partner, is also slow going. Seems like for better or worse, trade will be back moving markets.
New York Post
6 days ago
- Business
- New York Post
Fortnite players ‘tricked' into unwanted purchases are being refunded — here's how to apply
PHILADELPHIA — The US Federal Trade Commission is sending out the latest round of refunds to consumers it says were 'tricked' into purchases they didn't want from Fortnite maker Epic Games — and eligible players who haven't been compensated yet still have time to apply. In an announcement this week, the FTC said it was distributing more than 969,000 refunds totaling over $126 million to consumers on Wednesday and Thursday. That follows the regulator's first round of payments amounting to more than $72 million, which went out in December 2024. The FTC is sending out payments to consumers who claim they were 'tricked' into making purchases in the video game Fortnite. marinv – The refunds are part of a $520 million settlement that Epic agreed to pay back in 2022 — to address complaints revolving around children's privacy and payment methods on its popular Fortnite video game. At the time, the FTC had alleged that the gaming giant used deceptive online design tactics to trick Fortnite players, including children, into making unintended purchases 'based on the press of a single button.' Consumers could be charged while doing something as simple as attempting the wake the game from sleep mode, for example, or by pressing a nearby button when trying to preview an item, the agency said. The FTC also accused Epic of blocking some users who disputed the charges from accessing the content they purchased. Beyond a $275 million fine related to collecting personal information for players under the age of 13, the settlement, which was finalized in 2023, included $245 million in customer refunds. Charlie Gasparino has his finger on the pulse of where business, politics and finance meet Sign up to receive On The Money by Charlie Gasparino in your inbox every Thursday. Thanks for signing up! Enter your email address Please provide a valid email address. By clicking above you agree to the Terms of Use and Privacy Policy. Never miss a story. Check out more newsletters Between December's payments and the refunds sent out this week, about $198 million of that has been sent out — leaving roughly $47 million left to be distributed. The latest refunds are being doled out to consumers who filed a valid claim before Feb. 14 — meaning that any claims filed after that date are still under review, according to the FTC. And the FTC also says it's reopening the claims process. Eligible consumers who have not been compensated yet now have until July 9 to file a claim. Every morning, the NY POSTcast offers a deep dive into the headlines with the Post's signature mix of politics, business, pop culture, true crime and everything in between. Subscribe here! If accepted, the refunds come in the form of checks or PayPal payments. To apply and learn more about the settlement, users should visit the FTC's website. People who are eligible for these payouts include Fortnite players who were charged in-game currency for items they didn't want or saw their account locked after complaining to a credit card company about wrongful charges between January 2017 and September 2022 — as well as parents whose kids made charges on their credit cards without their knowledge from January 2018 through November 2018. The Associated Press reached out to Epic for comment on Thursday. At the time the settlement was announced in December 2022, Epic said it accepted the agreement because it wanted 'to be at the forefront of consumer protection and provide the best experience for our players.' The Cary, North Carolina-based company added that it was already rolling out changes 'to ensure our ecosystem meets the expectations of our players and regulators, which we hope will be a helpful guide for others in our industry.'
New York Post
25-06-2025
- Business
- New York Post
Skydance boss David Ellison tells Hollywood pals that Paramount merger will close before end of summer: sources
Skydance Media boss David Ellison has been striking an upbeat tone in his quest to purchase Shari Redstone's Paramount, On The Money has learned. The budding movie mogul's quiet confidence to media insiders in recent days may seem a bit odd for regular readers of On The Money. We've been chronicling how the $8 billion deal faces significant headwinds from the Trump administration's regulatory apparatus, and the president's own legal team. Not according to Ellison, however. In fact, the son of billionaire Oracle founder Larry Ellison has been telling people in TV and movie circles out in Los Angeles that he believes the deal will go through before the end of summer – well before its drop-dead date in October when both sides need to walk away if the deal isn't completed, according to two sources with direct knowledge of the matter. 4 David Ellison, the son of billionaire Oracle founder Larry Ellison, has been telling people in TV and movie circles out in Los Angeles that he believes the deal will go through before the end of summer. AFP via Getty Images It's unclear exactly why Ellison – whose independent studio has produced hits like 'Top Gun: Maverick' and the latest 'Mission: Impossible' sequels – is so optimistic because much of the news surrounding the transaction has been anything but encouraging. Trump's regulators are stalling their mandatory approval as they investigate if Paramount's CBS News subsidiary violated Federal Communications Commission guidelines that its content must be free of political bias; conservatives have complained about CBS's left-wing bias for years – a charge the network has vehemently denied. Trump has also filed a $20 billion lawsuit against CBS in Texas federal court, charging the network's '60 Minutes' with violating an obscure state business law in a case involving its controversial interview with Kamala Harris during the 2024 presidential election. Trump claims the sit-down with his Democratic opponent was deceptively edited. Paramount believes the deal's regulatory approval is contingent on a settlement. Yet, as On The Money previously reported, Redstone's management team and board are worried about being on the hook for bribery charges if the payment is seen as a quid-pro-quo to get the deal done. That's because their boss, Redstone, would receive a $2 billion payout once the merger is complete. 4 Trump's regulators are stalling their mandatory approval as they investigate if Paramount's CBS News subsidiary violated Federal Communications Commission guidelines that its content must be free of political bias. Al Drago/UPI/Shutterstock But maybe Ellison knows something we don't know. Both sides in the lawsuit have recently held settlement discussions, On The Money has learned. They've discussed a payment of $35 million to end the lawsuit, a far cry from the $20 billion headline number and lower than the $50 million Team Trump originally sought. As On The Money has reported, a potential settlement has been discussed where CBS runs millions of dollars in public service ads for causes of the president's liking, such as combating antisemitism, as well as making a lower cash payment. Sources say the mediator has warmed up to the idea of PSAs and a smaller monetary payment than what Trump has sought. But it's unclear if Trump will agree to those terms. 4 Shari Redstone would receive a $2 billion payout once the merger is complete. REUTERS 'President Trump is committed to holding those who traffic in fake news, hoaxes, and lies to account,' Trump lawyer Ed Paltzik told On The Money on Wednesday. 'CBS and Paramount targeted the president in an attempt to harm his reputation while committing the worst kind of election interference and fraud in the closing days of the most important presidential election in history. President Trump will pursue this vital matter to its just and rightful conclusion.' A Paramount spokesman had no comment. A spokeswoman for David Ellison declined comment. Trump recently praised the Oracle scion as someone who will be great running Paramount, and would change the culture at CBS, or as Trump put it (in his usual understated way): 'They are all getting fired' when ownership changes. 4 Trump recently praised the Oracle scion as someone who will be great running Paramount, and would change the culture at CBS. Christopher Sadowski David Ellison's dad, Larry Ellison is supplying the money (some of his $250 billion in net worth) for the Paramount merger, and as reported, he has an open line to the White House given his relationship with the president. Media industry insiders say there could also be a scenario where the deal is approved before the lawsuit is settled. Ellison then could write Trump the check after he takes over at Paramount. Or maybe Paramount is ready to just bite the bullet and pay Trump close to what he wants. Legal experts say any bribery case would be a stretch in court. Trump has been wringing settlements out of other companies over similar squabbles, and Paramount could make the case that even paying Trump $50 million is less than the cost of litigation. So, there might be good reasons for David Ellison's optimism that he will bag both a major movie studio and the Tiffany Network.
New York Post
13-06-2025
- Business
- New York Post
How to read the tea leaves on stalled $8B Paramount-Skydance deal
Everyone is reading the tea leaves these days on the seemingly forever stalled $8 billion Skydance-Paramount deal. The Wall Street fortune tellers keep looking for clues as to whether Paramount heiress Shari Redstone will pay President Trump what he wants to settle a $20 billion lawsuit against its CBS subsidiary? And if she does, will that be enough to get the deal approved by his broadcast regulators. Advertisement The Wall Street fortune tellers keep speculating as to whether Shari Redstone will pay Trump what he wants to settle a $20 billion lawsuit against CBS. Jack Forbes / NY Post Design On The Money exists at least in part to cut through the malarkey – and tell you that the latest tea leaves being closely examined are (as a certain great playwright once said) full of sound and fury, signifying nothing. One of those tea leaves led to the suggestion that Paramount laid off people earlier this week, a pretty steep 3% of its current workforce, because it's planning that the deal will not go through. Layoffs of such a magnitude usually occur not when two parties are about to merge, but long before, or when there is no deal in the works. The thinking is that current management is resizing the business because they plan on operating Paramount for the foreseeable future. Advertisement As On The Money was first to report, Paramount's top brass – aside from Redstone (she's recused herself because of the potential payday) – is wary of the optics of paying off Trump so Shari can walk away with what's left of the nest egg left to her by her father, the late merger impresario Sumner Redstone. They fear it could open the company to bribery charges by settling the frivolous lawsuit – alleging '60 Minutes' deceptively edited an interview with Kamala Harris in the heat of the campaign (Trump won the election so there's no damages) – that their directors and officers insurance doesn't cover if some prosecutor brought a case. All true, but the layoffs had little to do with the future of the deal, one way or the other, people close the transaction told On The Money. Advertisement Paramount fears it could open the company to bribery charges by settling the frivolous lawsuit – alleging '60 Minutes' deceptively edited an interview with Kamala Harris in the heat of the campaign. 60 Minutes / CBS SkyDance had planned to own Paramount by now, and was planning the exact same cuts to make the numbers work before it can invest and grow the business, sources said. With the deal in limbo, Paramount just did it first so cross that tea leaf off your list. The second tea leaf is a little more interesting, though I am told, just as inconsequential to the deal's outcome. Advertisement It involves the appearance of Skydance boss David Ellison ringside at a UFC 314 fight in Miami several weeks ago with Trump, who was shaking hands and schmoozing with the likes of Joe Rogan and Shaquille O'Neal. The tea-leaf-reading talk here speculated that the deal is back on – Trump can't wait to approve it as a favor to David's dad, and Trump bestie, Larry Ellison. Why would Trump be seen with Larry's kid if he were about to screw him? Except, guess who else was ringside as Trump made his way through the crowd? Elon Musk, yes that Elon who had just called Trump some really nasty names. So nasty that earlier this week, Elon issued a semi-apology. He was sitting with his son, not far from the younger Ellison and Trump. So cross that one off as well, deal watchers tell me. For now, those looking for clues on how this stalemate ends will have to turn over a new tea leaf.
