Paramount Global has agreed to pay $16 million to President Donald Trump to settle a lawsuit over the editing of a 60 Minutes interview with Vice President Kamala Harris—despite the company’s legal team previously dismissing the case as “meritless.”
The settlement comes as Paramount seeks final approval from the Trump administration for its $8 billion merger with Skydance Media, raising concerns over the timing and motivations behind the payout. Sources inside CBS News, a division of Paramount, say the decision has fueled internal turmoil, leading to low morale, high-profile resignations, and accusations of caving to political pressure.
“Morale is very low. No one is a fan of Shari right now,” one CBS staffer told The Independent, referring to Shari Redstone, Paramount’s controlling shareholder. Redstone, who is currently undergoing treatment for thyroid cancer, has been widely reported to have supported settling the lawsuit to smooth the path for the Skydance merger.
Trump originally sought $20 billion, claiming defamation and manipulation of his words in the aired segment. While the $16 million settlement is far less than what he demanded, his legal team touted it as a landmark victory. A spokesperson said the deal “proves the strength of this historic case,” even though no apology or admission of wrongdoing was included—something Trump had reportedly pushed for throughout the negotiations.
Under the terms of the agreement, no money will go directly to Trump or his co-plaintiff, Rep. Ronnie Jackson (R-TX). Instead, remaining funds—after legal fees—will support Trump’s future presidential library. This echoes a similar arrangement Trump reached last year with Disney over a defamation claim involving ABC anchor George Stephanopoulos.
The deal also includes a release of all current claims by Trump related to CBS reporting, as well as a commitment by CBS to release full interview transcripts with future presidential candidates—subject to legal and national security redactions.
However, critics argue the move undermines journalistic independence. The 60 Minutes team, including veterans like Scott Pelley and Lesley Stahl, openly criticized the settlement. Pelley warned it would be “very damaging” to the network, while Stahl called it “deeply upsetting” and emblematic of “dark times.”
Frustrations within CBS had been building for months. Executive producer Bill Owens resigned in April, citing a lack of editorial independence. CBS News president Wendy McMahon followed suit in May, saying she couldn’t support the company’s direction. Both reportedly resisted any settlement that included an apology to Trump.
Adding to the backlash, the Writers Guild of America East, which represents CBS News staff, condemned the decision. “This is a transparent attempt to curry favor with the administration to get the merger approved,” the guild said in a statement. “It sends a chilling message to journalists everywhere.”
All seven 60 Minutes correspondents had previously sent a letter to Paramount’s leadership urging them not to settle, calling Trump’s lawsuit “baseless” and warning that giving in would “undermine the First Amendment.”
Their pleas were ultimately ignored. “The letter didn’t move the needle at all,” a network insider told The Independent.
Legal experts and press freedom advocates have also sounded the alarm. The Freedom of the Press Foundation (FPF), which threatened legal action on behalf of Paramount shareholders, blasted the decision. “This settlement is an insult to press freedom and to the journalists at CBS,” said FPF’s advocacy director Seth Stern. “It’s a dark day for Paramount and for the First Amendment.”
FPF, which has retained prominent litigators Abbe Lowell and Norm Eisen, is now considering legal action. The group had already sent a shareholder information request in preparation for potential litigation, arguing that the settlement may violate anti-bribery and corporate governance laws.
Meanwhile, Paramount insists the settlement is unrelated to the pending Skydance deal, though critics remain unconvinced. Trump-appointed FCC Chair Brendan Carr has publicly stated that the lawsuit and merger are separate matters.
But with the deal still awaiting federal approval and the fallout from the settlement continuing to unfold, Paramount may have traded short-term convenience for long-term damage to its credibility and journalistic integrity.
