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Shari Redstone, the longtime media executive behind CBS and Paramount Global, was “blown away” by the terms of the “no-brainer” settlement with President Donald Trump that cleared the way for a blockbuster merger with Skydance Media.
Trump sought $20 billion in his lawsuit against CBS over its handling of an edited “60 Minutes” interview last year with then-Vice President Kamala Harris, accusing the network of election interference leading up to the 2024 contest. The dispute was settled in July, with Trump receiving $16 million upfront to cover legal fees, costs of the case, and contributions to his future presidential library or charitable causes.
The settlement paved the way for the Federal Communications Commission (FCC) to approve a long-planned merger between Paramount Global and Skydance Media. That allowed Redstone, who controlled more than three-quarters of Paramount’s Class A voting shares, to exit the newly formed company.
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The New York Times revealed on Tuesday that Redstone spoke to the paper multiple times over the past year “with the understanding that nothing discussed could be used until after the merger closed.”
Critics have blasted the controversial settlement, as many feel it was essentially a “bribe” to get FCC approval. But it was revealed that Redstone was expecting to pay a larger sum and was thrilled that the network didn’t have to issue an apology or admission of wrongdoing.
“I was blown away,” Redstone told the Times. “How did they do it? I don’t know, and I didn’t ask.”
Before deciding to settle Trump’s lawsuit against CBS, Redstone observed that ABC News agreed last year to pay $15 million to Trump’s presidential library in order to settle a lawsuit after anchor George Stephanopoulos falsely insisted Trump had been found “liable for rape.”
“Redstone thought the deal by Disney, ABC’s owner, made sense, given the high costs and risks of litigation,” the Times reported.
Redstone and her inner circle believed CBS would have a difficult time beating Trump in a Texas court and wanted to avoid a damaging discovery process.
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Specifically, a 2023 interview conducted with then-President Joe Biden could have resulted in accusations his shortcomings were concealed after he appeared “drowsy and had to be prodded to answer,” the Times reported, noting that others feel “Redstone’s concerns about the Biden interview were overblown.”
“This case was never as black-and-white as people assumed,” Redstone said. “I believed it was always in Paramount’s best interest to settle.”
Redstone recused herself from settlement talks but made it clear that she preferred to reach a deal.
“We may not like the world we live in, but a board has to do what’s in the best interest of shareholders,” Redstone told the Times.
The Times reported that lawyers for Skydance were also pushing for a settlement and warned that the potential merger might fall apart without an agreement. The settlement was reached in July.
There is an anticipation that there will be another allocation in the eight figures set aside for advertisements, public service announcements, or other similar transmissions, that will be funded by new ownership. Skydance has not publicly commented on it, but the Times reported Redstone was “upset” about any sort of side deal.
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The deal became official on August 7 and the company, dubbed “Paramount, a Skydance Corporation,” is now run by CEO David Ellison, the son of billionaire Oracle co-founder Larry Ellison.
“My legacy was to create security for my family and to put the company in good hands,” Redstone told the Times.
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