President Trump's $20 billion lawsuit against CBS News, stemming from allegedly altered interview footage of Vice President Harris, is jeopardizing the merger between Paramount and Skydance. The lawsuit, coupled with an FCC investigation, could block the deal, a significant concern for the Hollywood community.
The Paramount-Skydance merger is crucial to Hollywood as Paramount is one of the last major studios, impacting thousands of jobs. Shari Redstone and David Ellison, key players in this deal, are determined to make it happen, potentially at any cost.
To secure the deal, Paramount may settle with Trump, which could include an apology from CBS News. This could cause significant internal strife at CBS News, possibly resulting in the resignation or firing of CEO Wendy McMahon. Further complicating matters, McMahon's handling of “Wheel of Fortune” and “Jeopardy!” distribution rights negotiations has added to concerns about her leadership.
The situation is further complicated by the involvement of Trump supporters within Paramount and Skydance. The potential settlement is estimated to range from $10 million to $50 million. While CBS News maintains its innocence, a settlement is seen as a necessary compromise to gain approval from the FCC.
The potential settlement is causing fear and division within CBS News. Some staff fear a compromise will set a dangerous precedent. Additional concerns surround falling ratings at CBS News, adding pressure to the already tense situation. A settlement might involve a public apology, a major sticking point for CBS News leadership.