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Trump’s Endorsement of David Ellison‘s Paramount Global Takeover Faces Hurdles
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Former President Donald Trump has publicly endorsed david Ellison’s $8 billion takeover of Paramount Global, a deal currently under federal review. This endorsement comes amidst a significant complication: Trump’s own $20 billion lawsuit against CBS, a subsidiary of Paramount, stemming from a “60 Minutes” interview [CBS News].
Trump’s Support and the FCC Review
On Wednesday,as reporters gathered at the White House,Trump voiced his support for the Paramount-Skydance deal,which has been awaiting approval from the Federal Communications Commission (FCC) since late last fall.”Ellison is great. He’ll do a great job with it,” Trump stated, expressing his hope for the deal’s triumphant completion.
however, Trump also suggested a connection between the delay in the merger review and his ongoing lawsuit against CBS and its parent company, Paramount, concerning a “60 Minutes” interview with then-Vice President Kamala Harris [FCC].
Did You Know? The FCC is responsible for regulating interstate and international communications by radio, television, wire, satellite, and cable in the United States.
The “60 minutes” Controversy and Lawsuit
Since October, Trump has alleged that the “60 Minutes” interview with Kamala Harris was deliberately edited to enhance her image before the November election.CBS has refuted these claims, asserting that the edits were standard practice and that Harris was accurately quoted. Despite this, Trump’s legal team argues that the broadcast caused him “mental anguish.”
Trump described Harris’s response in the interview as “election-threatening” due to its perceived incompetence. While First Amendment experts have labeled Trump’s lawsuit as frivolous, Paramount is keen to avoid a protracted legal battle, as it could impede the Skydance acquisition, which requires FCC approval.
Mediation and Executive Departures
The mediation process aimed at resolving the lawsuit, filed in a Texas court, has been lengthy. Trump noted that two high-level CBS executives-the head of CBS News and the executive producer of “60 Minutes”-have recently left their positions as the merger review continues.
“They’re all getting fired,” he said.
Court documents filed by Trump’s legal team last week requested an extension in the discovery process, indicating ongoing efforts to reach a settlement.
Ellison’s Engagement with Trump
earlier this month, David Ellison and Trump had a brief meeting at a UFC fight in New Jersey, marking their second encounter at a UFC event this year. Skydance has declined to comment on these interactions.
The Paramount-Skydance Deal: Key Details
It has been almost a year since Shari Redstone, Paramount’s controlling shareholder, and other directors approved the $8 billion deal that would transfer the company to David Ellison, whose father, Larry Ellison, is a known Trump supporter. The agreement also involves the ellison family acquiring National Amusements Inc., the Redstone investment vehicle.
Skydance, based in Santa Monica, plans to integrate its operations and personnel into Paramount, consolidating assets such as the Paramount film studio, Paramount+ streaming service, CBS, and cable channels like Comedy Central, Showtime, and BET.
Pro Tip: Keep an eye on FCC filings and announcements for updates on the regulatory review process of the Paramount-Skydance deal.
The Final Regulatory Hurdle
The final regulatory step is FCC Chairman brendan Carr’s approval to transfer 29 CBS television station licenses from the Redstones to the Ellisons. The Senate recently confirmed Olivia Trusty, Trump’s second Republican appointee, to the FCC.