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New York Post
02-07-2025
- Business
- New York Post
Paramount CEO claims Trump legal settlement avoided 'reputational damage' -- but insiders cry BS
Paramount co-CEO George Cheeks on Wednesday insisted the $16 million settlement with President Donald Trump to squash his $20 billion lawsuit saved the company from 'reputational damage.' But network insiders weren't buying it. They slammed parent company Paramount's capitulation over the controversial '60 Minutes' interview with former Vice President Kamala Harris and said the brand has already been tarnished. Advertisement 7 George Cheeks, co-CEO of Paramount and head of CBS, insisted the company's settlement with Trump saved it from 'reputational damage' but insiders weren't buying it. Getty Images for Paramount+ 'What the f-k is he talking about? The damage has already been done,' a veteran CBS journalist told The Post on Wednesday. 'Trump has trashed them for what a year now? (Cheeks) can spin it any way he wants.' A second CBS insider lamented: 'It's a sad day for the journalistic community. The reputational damage to '60 Minutes' is seismic.' Advertisement Cheeks, the CEO of CBS and part of the three-headed hydra running Paramount, spoke hours after the media giant agreed late Tuesday night to to pay Trump $16 million — the same amount ABC forked over to the president in December to settle a defamation suit. On a conference call during the company's annual shareholders meeting, Cheeks said the move helped CBS avoid a costly legal battle and 'an adverse' judgment that could produce 'significant financial as well as reputational damage.' The network will also set aside another $15 million to $20 million for public service announcements in support of conservative causes in the future, sources told The Post's Charles Gasparino on Wednesday. 7 Paramount settled Trump's suit over CBS' '60 Minutes' interview with then-Vice President Kamala Harris. 60 Minutes / CBS Advertisement Aside from the financial hit, the settlement in the lawsuit, filed in Texas last December, will also force the network to promptly release full, unedited transcripts of future presidential candidates' interviews — referred to as the 'Trump Rule,' sources told The Post. However, CBS was able to squirm out of having to apologize over Trump's allegation that '60 Minutes' deceptively edited the Harris sit-down weeks before the election to make her sound more coherent — a hot button issue that has roiled the network. 'There's 16 million apologies in the settlement. Trump got two heads. He got Bill Owens' head and he got Wendy McMahon's head and he got $16 million,' one of the network insiders said. 7 Trump walked away with $16 million, as well as dedicated PSAs from CBS and a pledge from the network to release raw transcripts of presidential candidates going forward. AP Advertisement Owens, the longtime executive producer of '60 Minutes' resigned in April, citing a loss of journalistic independence as Paramount was embroiled in settlement talks with Trump. His former boss, CBS News CEO Wendy McMahon, stepped down a month later, saying it became 'clear' that she and the company didn't agree on a 'path forward.' Another CBS source with knowledge of the situation credited Cheeks for moving past this dark chapter in the Tiffany Network's history and helping to clear a major hurdle for Paramount's pending $8 billion merger with independent studio Skydance Media. 7 '60 Minutes' boss Bill Owens resigned in April, citing a loss of journalistic independence as Paramount was embroiled in settlement talks with Trump. Variety via Getty Images Cheeks is expected to take a leadership role at the company once the Skydance deal goes through. 'George did what he had to do to get the merger done,' the source said. 'He was told he had to clean house in leadership. He was told he needed to change the editorial policy. Sacrifices had to be made to get the lawsuit settled and George made them. The money is just part of the story.' CBS will not have to acknowledge any journalistic wrongdoing with the settlement. 'The settlement will include a release of all claims regarding any CBS reporting through the date of the settlement, including the Texas action and the threatened defamation action,' Paramount said in a statement. Advertisement 7 CBS News CEO Wendy McMahon exited the company in May, saying it became 'clear' that she and the company didn't agree on a 'path forward.' Evan Agostini/Invision/AP Attention will now turn to the Federal Communications Commission. Trump-appointed chair Brendan Carr launched a probe into whether the network violated the agency's 'news distortion' policy after a conservative group filed a complaint over the alleged deceptive editing. Shari Redstone, Paramount's controlling shareholder, is poised to walk away with about $1.75 billion if the merger is approved. Sources speculated that with the lawsuit behind Paramount, the merger will get regulatory approval in the coming weeks. Advertisement 7 Paramount Global owner Shari Redstone stands to walk away with nearly $2 billion once the merger with Skydance is completed. FilmMagic 'I think Shari Redstone and George Cheeks are wiping their hands of CBS News,' one of the sources said. 'The new owners are inheriting a greatly diminished asset.' A rep for Paramount said: 'This lawsuit is completely separate from, and unrelated to, the Skydance transaction and the FCC approval process. We will abide by the legal process to defend our case.' Advertisement Redstone, 71, may be leaving her media empire, but she will be rewarded with some of the trappings of her high-flying life 7 Sources said they believe CBS News and '60 Minutes,' in particular, have been tarnished by Paramount's legal settlement with the president. Christopher Sadowski Skydance and its investor in the deal, RedBird Capital Partners, agreed to take on National Amusements' financial obligations and pay for the remainder of Redstone's lease for her private jet, according to the Wall Street Journal. The Hollywood production company also will cover the expenses for her Central Park-area apartment in New York City for the next few years, according to reports. Advertisement The merger between Skydance and Paramount has been a prolonged process with both sides finally agreeing to a deal last June after fits and starts.
American Military News
02-07-2025
- Business
- American Military News
Video: CBS, Paramount forced to pay Trump $16 million in major settlement
CBS News and Paramount Global will be forced to pay President Donald Trump at least $16 million following a major settlement on Tuesday in Trump's election interference lawsuit, which was filed following the release of an edited interview of former Vice President Kamala Harris on CBS News. According to Fox News, under the settlement that CBS News and Paramount Global agreed to on Tuesday, Trump will receive an upfront payment of $16 million; however, the full settlement could exceed $30 million. The outlet noted that the upfront payment will cover the president's legal fees and any costs associated with the case and will include contributions to Trump's anticipated presidential library or various charities determined by the president. Fox News reported that CBS News and Paramount could also be required to pay millions of dollars more in future advertisements and public service announcements supporting conservative causes. In a statement obtained by CNN, Paramount said, 'The settlement does not include a statement of apology or regret.' 'The settlement will include a release of all claims regarding any CBS reporting through the date of the settlement, including the Texas action and the threatened defamation action,' Paramount added. READ MORE: Videos: CBS releases two different versions of Kamala Harris' '60 Minutes' interview According to Fox News, sources familiar with the settlement confirmed that CBS News agreed to change its editorial standards to create a mandatory rule that will require the news outlet to quickly release full and unedited transcripts of interviews featuring future presidential candidates. Sources told Fox News that CBS News' new rule has been described as the 'Trump Rule.' In a statement to Fox News, a spokesperson for the president's legal team said, '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.' 'CBS and Paramount Global realized the strength of this historic case and had no choice but to settle,' the spokesperson added. 'President Trump will always ensure that no one gets away with lying to the American People as he continues on his singular mission to Make America Great Again.' According to Fox News, Trump initially filed a $20 billion lawsuit against CBS News and accused the news outlet of interfering in the 2024 presidential election by deceitfully editing a '60 Minutes' interview featuring Harris. Prior to the release of the interview, CBS shared a lengthy answer by Kamala Harris regarding Israeli Prime Minister Benjamin Netanyahu's alleged reluctance to listen to the advice of the Biden administration in a segment on CBS News' 'Face the Nation.' However, after the former vice president was mocked by the Trump campaign for responding with a 'word salad' answer, CBS News released a different clip as part of the full interview on '60 Minutes.' A video contrasting the two different interview clips released by CBS News was previously shared on X, formerly Twitter.
New York Post
02-07-2025
- Politics
- New York Post
Paramount, CBS forced to pay eight-figures, change editorial policy in settlement with Trump
Paramount Global and CBS agreed on Tuesday to pay President Donald Trump a sum that could reach north of $30 million to settle the president's election interference lawsuit against the network. Trump will receive $16 million upfront. This will cover legal fees, costs of the case, and contributions to his library or charitable causes, to be determined at Trump's discretion. Advertisement There is an expectation that there will be another allocation in the mid-eight figures set aside for advertisements, public service announcements, or other similar transmissions, in support of conservative causes by the network, Fox News Digital has learned. Sources close to the situation told Fox News Digital that CBS has agreed to update its editorial standards to install a mandatory new rule. Going forward, the network will promptly release full, unedited transcripts of future presidential candidates' interviews. People involved in the settlement talks have referred to this as the 'Trump Rule.' Trump was seeking $20 billion in his lawsuit against CBS over its handling of a '60 Minutes' interview last year with then-Vice President Kamala Harris, accusing the network of election interference leading up to the 2024 contest. CBS is not acknowledging any journalistic wrongdoing with the settlement. Advertisement 4 President Donald Trump boards Air Force One at Joint Base Andrews on July 1, 2025. REUTERS The lawsuit alleged CBS News deceitfully edited an exchange Harris had with '60 Minutes' correspondent Bill Whitaker, who asked her why Israeli Prime Minister Benjamin Netanyahu wasn't 'listening' to the Biden administration. Harris was widely mocked for the 'word salad' answer that aired in a preview clip of the interview on CBS' 'Face the Nation.' However, when the same question aired during a primetime special on the network, Harris had a different, more concise response. Critics at the time accused CBS News of deceitfully editing Harris' 'word salad' answer to shield the Democratic nominee from further backlash leading up to Election Day. Advertisement The raw transcript and footage released earlier this year by the FCC showed that both sets of Harris' comments came from the same response, but CBS News had aired only the first half of her response in the 'Face the Nation' preview clip and aired the second half during the primetime special. 4 Vice President Kamala Harris during her '60 Minutes' interview. 60 Minutes / CBS 4 '60 Minutes' Bill Whitaker interviews Vice President Kamala Harris for the show's election special. 60 Minutes / CBS CBS News had long denied any wrongdoing and stood by the broadcast and its reporting. Advertisement Paramount and Trump's legal team had agreed to mediation designed to help the sides reach a settlement. It was widely believed that Paramount Global controlling shareholder Shari Redstone wanted to settle the suit ahead of a planned multi-billion-dollar merger with Skydance Media in hopes of preventing potential retribution by Trump's FCC, which has the authority to halt the transaction. Trump confidently declared the case against CBS a 'winner' in April. 'They cheated and defrauded the American People at levels never seen before in the Political Arena. Kamala Harris, during Early Voting and, immediately before Election Day, was asked a question, and gave an answer, that was so bad and incompetent that it would have cost her many of the Votes that she ended up getting,' Trump posted on Truth Social ahead of mediation, going on to accuse the newsmagazine of perpetrating a fraud on the American people. Sen. Bernie Sanders, I-Vt., and eight Democratic colleagues sent a letter to Redstone in May asking her not to settle the lawsuit against CBS News, which they called an 'attack on the First Amendment.' They called the potential settlement a 'grave mistake' and 'a blatant attempt to intimidate the media and those who speak out against him, President Trump.' 4 The Parmount and CBS News signs outside the company's building of One Astor Plaza in New York on June 13, 2025. Christopher Sadowski The letter also stated 'presidents do not get to punish or censor the media for criticizing them' in the United States. Earlier this year, FCC Chair Brendan Carr ordered CBS News to hand over the unedited transcript as part of its probe into whether the network violated the FCC's 'news distortion' policy after a complaint was filed. CBS had refused to release the unedited transcript until the FCC got involved. Trump's attorneys amended their lawsuit to include multiple excerpts from the unedited transcript in hopes of bolstering their case that CBS News withheld unflattering exchanges in order to help the Democratic nominee. Advertisement The saga emerged as a distraction inside CBS News and longtime '60 Minutes' executive producer Bill Owens walked away from the job in April because he wasn't able to make the 'independent decisions' needed for the program to thrive. Owens, who had insisted CBS did nothing wrong with the Harris edit, was vehemently against offering any sort of apology to the president. CBS News President and CEO Wendy McMahon, who is believed to have been against settling with Trump, announced on May 19 that she was stepping down in another stunning move for the embattled company. 'It's become clear that the company and I do not agree on the path forward. It's time for me to move on and for this organization to move forward with new leadership,' McMahon told staffers in a memo that was obtained by Fox News Digital. Advertisement ABC also settled a defamation lawsuit in December with then-President-elect Trump for $15 million, after anchor George Stephanopoulos repeatedly and incorrectly asserted Trump had been found 'liable for rape' in a civil trial last year. Fox News Digital's Brooke Singman contributed to this report.
