Trump Lawsuit Throws Paramount’s $8B Skydance Deal Into Chaos

Paramount Global is in the middle of a corporate firestorm, all sparked by a single editorial decision made during an October 2024 60 Minutes segment. Producers trimmed two sentences from Vice President Kamala Harris’ interview response, airing only the most succinct soundbite. That move now stands at the center of President Donald Trump’s $20 billion lawsuit against CBS’ parent company, claiming the edits deceptively improved Harris' image and damaged his own. The lawsuit has since grown into a tangled web of legal, political, and financial chaos, casting uncertainty over Paramount’s high-stakes sale to Skydance Media, reported by Los Angeles Times.

The sale, valued at $8 billion, is crucial for controlling shareholder Shari Redstone, whose family is burdened by hundreds of millions in debt. Skydance’s acquisition would deliver $2.4 billion to the Redstones and inject $1.5 billion into Paramount’s operations. But that path now appears blocked. Trump’s lawsuit, which he doubled in value after returning to the White House, has triggered an FCC review, internal resignations, and even a letter from three U.S. senators warning that settling the suit could constitute an illegal bribe. Redstone is said to be pushing for a settlement to move the deal forward, but many within CBS — particularly journalists — view the idea as a betrayal of press freedom.

The fallout has been severe. Two top CBS News executives have resigned, unwilling to apologize to Trump. Bill Owens, executive producer of 60 Minutes, stepped down citing a loss of editorial independence, and CBS News head Wendy McMahon soon followed. Meanwhile, pressure is mounting from both the political right, which views the Harris edit as proof of media bias, and press freedom advocates, who warn that settling with Trump could set a dangerous precedent. The Freedom of the Press Foundation has threatened to sue if Paramount pays Trump, arguing it would amount to laundering a bribe.

The political environment has only heightened the stakes. Trump allies have intensified scrutiny of legacy media, and Trump-appointed FCC Chairman Brendan Carr has revived a news distortion complaint tied to the Harris interview. At the heart of the controversy is an old but thorny media question: What constitutes fair editing in political journalism? While CBS insists its producers simply streamlined Harris’ lengthy remarks, critics argue that the selective airing proved long-held suspicions about media bias, particularly when broadcast over two different programs.

As the legal and regulatory saga drags on, Paramount’s window to complete the Skydance merger narrows. If the deal collapses by the October deadline, Paramount could owe Skydance a $400 million breakup fee, plunging the company deeper into financial peril. Shari Redstone, under pressure to resolve the impasse and salvage the deal, faces a high-stakes dilemma. Settling with Trump might rescue the sale but could spark lawsuits, criminal scrutiny, and irreparable damage to CBS’ legacy. As one media lawyer put it, these are not normal times — and for Paramount, the cost of one edit may be its future.