The proposed settlement between Paramount Global and Donald Trump regarding his $20 billion lawsuit is drawing intense scrutiny and raising serious legal and ethical concerns. The Freedom of the Press Foundation (FPF), a Paramount shareholder, has formally warned the company that such a settlement, reportedly under consideration to pave the way for a merger with Skydance, “could amount to a bribe” designed to influence the Trump administration’s approval of the deal. This concern echoes warnings from a bipartisan group of U.S. Senators who have already suggested Paramount “may be engaging in potentially illegal conduct.”
The FPF argues that settling what they deem a baseless lawsuit, one that infringes upon First Amendment rights, sets a dangerous precedent that could expose other media outlets to similar frivolous legal challenges. Their letter emphasizes that corporations owning news organizations should not be in the business of placating powerful figures with settlements that undermine the freedom of the press.
The crux of the issue lies in the potential for quid pro quo. Reports suggest Paramount, is actively pushing for the settlement with the explicit intention of expediting the Skydance merger. This perceived link between the settlement and regulatory approval is what fuels accusations of bribery and potential illegality.
Furthermore, Paramount’s own executives are reportedly aware of the considerable risks involved. They have acknowledged that settling the Trump lawsuit “could expose directors and officers to liability in potential future shareholder litigation or criminal charges for bribing a public official.” The FPF’s warning adds further weight to these concerns, suggesting that settling could not only invite legal repercussions but also severely damage Paramount’s reputation and erode public trust in its news division, CBS News.
The situation raises profound questions about corporate governance, the influence of political pressures on media organizations, and the integrity of the merger review process.
Blue Press Journal 