Shari Redstone Reacts to Urgent $16M Trump Settlement Clearing Merger
UPDATE: In a stunning development, media executive Shari Redstone has expressed her astonishment over the recent $16 million settlement with former President Donald Trump, which paves the way for a major merger between Paramount Global and Skydance Media. This urgent settlement, finalized in July 2023, is now under intense scrutiny as it raises questions about election interference claims linked to Trump’s lawsuit against CBS News.
Redstone revealed she was “blown away” by the terms of the settlement, which Trump initially sought at $20 billion. The lawsuit stemmed from CBS’s handling of a controversial edited interview with then-Vice President Kamala Harris, which Trump alleged influenced the upcoming 2024 election. The settlement covered not just legal fees but also contributions to Trump’s future presidential library.
With the Federal Communications Commission (FCC) now approving the blockbuster merger, Redstone, who controls over three-quarters of Paramount’s Class A voting shares, is poised to exit the newly formed entity. This merger is valued at an astounding $8 billion and is set to reshape the media landscape.
Critics have voiced strong opposition to the settlement, calling it a “bribe” to secure FCC approval, while supporters claim it was a strategic decision to avoid protracted litigation. Redstone had anticipated a larger payout but was relieved that CBS did not have to issue an apology or admit wrongdoing. In her words, “I was blown away. How did they do it? I don’t know, and I didn’t ask.”
The settlement was influenced by previous cases, including a $15 million payment by ABC News to Trump’s library following a lawsuit over false claims made by anchor George Stephanopoulos. Redstone considered the potential risks of litigation, particularly in a Texas court, where the chances of a favorable outcome for CBS were deemed slim.
Specifically, concerns arose regarding a 2023 interview with then-President Joe Biden, in which questions about his performance could have had damaging repercussions. Redstone noted, “This case was never as black-and-white as people assumed. I believed it was always in Paramount’s best interest to settle.”
Despite her recusal from settlement discussions, Redstone emphasized the need for a resolution that would safeguard shareholder interests. Lawyers for Skydance had also advocated for a settlement, warning that the merger might collapse without one.
The deal officially closed on August 7, 2023, giving rise to the new company, now officially titled Paramount, a Skydance Corporation, under the leadership of CEO David Ellison, son of billionaire Oracle co-founder Larry Ellison. Redstone stated, “My legacy was to create security for my family and to put the company in good hands.”
As this story develops, the implications of the settlement and merger will be closely monitored, especially concerning the media’s role in the upcoming election cycle. This urgent update underscores the intersection of media, politics, and corporate strategy, with significant ramifications for stakeholders involved.
Stay tuned for further updates on this unfolding situation, as the media landscape is poised for dramatic changes.
