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Donald Trump’s media regulator is in talks with Paramount about concessions the studio must make to win approval for its $8bn merger with Skydance, according to people familiar with the matter.
The negotiations between Brendan Carr, the US Federal Communications Commission chair, and Paramount come as the production company also faces a legal battle with Trump over its flagship news broadcaster CBS.
Trump’s lawyers and Paramount are set to enter arbitration on April 30 over a $20bn lawsuit waged by the US president against CBS, said people close to the situation.
The two negotiations reflect the unusual way corporate America has been forced to capitulate to Trump’s White House, or risk retribution in the form of blocked deals and lawsuits.
Paramount owns the eponymous film studio as well as CBS News. Trump sued CBS for defamation, claiming $20bn in damages for what he alleges was deceptive editing of an interview with Kamala Harris, his opponent in last year’s White House race.
Paramount’s moves to settle the lawsuit with Trump have infuriated the CBS newsroom in recent weeks, culminating in the resignation of the 60 Minutes executive producer on Tuesday.
Explaining his exit, producer Bill Owens told staff: “Over the past months, it has become clear that I would not be allowed to run the show as I have always run it. To make independent decisions based on what was right for 60 Minutes”.
CBS and its lawyers have said Trump’s lawsuit is meritless. However, Paramount has been considering paying a settlement to Trump as part of an effort to receive approval for its merger with Skydance, according to people familiar with the matter. Paramount and Skydance announced the deal last summer.
Carr, who Trump installed to lead the US media regulator, has hit out at the Paramount-Skydance deal and delayed it for months. Carr last month said ending diversity, equity and inclusion programmes was a precursor for companies looking to get deals done.
“Any businesses that are looking for FCC approval, I would encourage them to get busy ending any sort of their invidious forms of DEI discrimination”, Carr told Bloomberg.
Paramount is speaking with Carr about a range of options, including making a commitment to avoid any DEI policies going forward, said people familiar with the matter.
The Wall Street Journal first reported on the FCC’s talks with Paramount.
Carr has hit out at other media groups such as Disney and Comcast in recent months, warning that the FCC would investigate their diversity initiatives.
Trump last year sued ABC News after anchor George Stephanopoulos falsely said on-air that Trump had been found “liable for rape”. Disney, which owns ABC, in December paid $15mn to Trump’s presidential library to settle the defamation lawsuit.
