Exclusive | Paramount CEO claims Trump legal – Business News
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 community insiders weren’t shopping for it.
They slammed guardian company Paramount’s capitulation over the controversial “60 Minutes” interview with former Vice President Kamala Harris and mentioned the model has already been tarnished.
George Cheeks, co-CEO of Paramount and head of CBS, insisted the company’s settlement with Trump saved it from “reputational damage” however insiders weren’t shopping for it. Getty Images for Paramount+
“What the f-k is he talking about? The damage has already been done,” a veteran CBS journalist advised 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.”
Cheeks, the CEO of CBS and half of the three-headed hydra working Paramount, spoke hours after the media giant agreed late Tuesday evening to to pay Trump $16 million — the identical quantity ABC forked over to the president in December to settle a defamation swimsuit.
On a convention call during the company’s annual shareholders assembly, Cheeks mentioned the transfer helped CBS keep away from a expensive legal battle and “an adverse” judgment that might produce “significant financial as well as reputational damage.”
Paramount settled Trump’s swimsuit over CBS’ “60 Minutes” interview with then-Vice President Kamala Harris. 60 Minutes / CBS
Separately, Skydance boss David Ellison helped seal the deal by offering to run thousands and thousands of {dollars} in public service announcement adverts as soon as the stalled merger with Paramount is authorised, sources close to the matted advised The Post’s Charles Gasparino
Paramount denied any data of a “side deal.”
“Paramount knows nothing about the alleged side deal between TrumpEllison, had absolutely nothing to do with it, nor was it a part of what the board approved, and the mediator sanctioned.” a spokesperson advised The Post.
Aside from the financial hit, the settlement within the lawsuit, filed in Texas final December, will pressure the community to promptly release full, unedited transcripts of future presidential candidates’ interviews — known as the “Trump Rule,” sources advised The Post.
CBS was in a position to keep away from having to apologize over Trump’s allegation that “60 Minutes” deceptively edited the Harris sit-down weeks earlier than the election to make her sound more coherent — a scorching button situation that has roiled the community.
“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 community insiders mentioned.
Trump walked away with $16 million, in addition to devoted PSAs from CBS and a pledge from the community to release uncooked transcripts of presidential candidates going ahead. AP
Owens, the longtime government 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 turned “clear” that she and the company didn’t agree on a “path forward.”
Another CBS source with data of the scenario credited Cheeks for shifting previous this darkish chapter within the Tiffany Network’s historical past and serving to to clear a main hurdle for the Paramount’s $8 billion merger with Ellison’s impartial film studio.
“60 Minutes” boss Bill Owens resigned in April, citing a loss of journalistic independence as Paramount was embroiled in settlement talks with Trump. Variety by way of Getty Images
Cheeks is anticipated to take a management position on the company as soon as the Skydance deal goes via.
“George did what he had to do to get the merger done,” the source mentioned. “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 is not going to need 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 mentioned in a assertion.
CBS News CEO Wendy McMahon exited the company in May, saying it turned “clear” that she and the company didn’t agree on a “path forward.” Evan Agostini/Invision/AP
Attention will now flip to the Federal Communications Commission. Trump-appointed chair Brendan Carr launched a probe into whether or not the community violated the company’s “news distortion” coverage after a conservative group filed a grievance over the alleged misleading modifying.
Shari Redstone, Paramount’s controlling shareholder, is poised to stroll away with about $2 billion if the merger is authorised.
Sources speculated that with the lawsuit behind Paramount, the merger will get regulatory approval within the coming weeks.
Paramount Global proprietor Shari Redstone stands to stroll away with almost $2 billion as soon as the merger with Skydance is accomplished. FilmMagic
“I think Shari Redstone and George Cheeks are wiping their hands of CBS News,” one of the sources mentioned.
“The new owners are inheriting a greatly diminished asset.”
A rep for Paramount mentioned: “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.”
Redstone, 71, could also be leaving her media empire, however she might be rewarded with some of the trimmings of her high-flying life
Sources mentioned they consider CBS News and “60 Minutes,” particularly, have been tarnished by Paramount’s legal settlement with the president. Christopher Sadowski
Skydance and its investor within the deal, RedBird Capital Partners, agreed to tackle National Amusements’ financial obligations and pay for the rest of Redstone’s lease for her non-public jet, in response to the Wall Street Journal.
The Hollywood manufacturing company additionally will cowl the bills for her Central Park-area house in New York City for the subsequent few years, in response to reviews.
The merger between Skydance and Paramount has been a extended course of with each side lastly agreeing to a deal final June after suits and begins.
