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Paramount Settlement Draws FCC Scrutiny Amid Skydance Merger Review

By  |  July 2, 2025

A recent $16 million settlement by Paramount Global to resolve a defamation lawsuit filed by President Donald Trump is drawing sharp criticism from within the Federal Communications Commission (FCC), raising new questions about the fate of the company’s proposed $8.4 billion merger with Skydance Media.

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    According to Reuters, Democratic FCC Commissioner Anna Gomez described the settlement as a “desperate move” by Paramount to bolster its chances of winning regulatory approval for the merger. The lawsuit stemmed from a “60 Minutes” interview with then-presidential candidate Kamala Harris that aired during the 2020 election cycle. Trump had accused CBS News, a Paramount subsidiary, of bias in its coverage.

    Gomez denounced the lawsuit as “entirely meritless,” and warned that Paramount’s decision to settle could jeopardize the integrity of the FCC’s pending review. “This action marks a dangerous precedent for the First Amendment,” she said, according to Reuters, suggesting it could chill press freedom and encourage politically motivated legal tactics.

    Related: Delaware Judge Considers Class Action Lawsuit Over Paramount Sale to Skydance Media

    The settlement comes as the FCC continues to deliberate over the Paramount-Skydance merger, which has not received a decision despite surpassing the commission’s 180-day informal review deadline in mid-May. FCC Chair Brendan Carr, a Republican appointee of Trump, confirmed last week that the review remains ongoing but has not issued further comment on the matter.

    Per Reuters, Gomez argued that the FCC’s commissioners—not its staff—should vote directly on the merger in light of the controversy. She pointed to the significant public interest, the unresolved legal questions surrounding the lawsuit, and previous calls from lawmakers demanding more transparency in the merger process.

    Earlier this year, Carr revived complaints regarding the same “60 Minutes” segment featuring Harris, along with grievances about ABC News’ handling of a televised debate between Trump and Joe Biden, and NBC’s decision to allow Harris to appear on “Saturday Night Live” shortly before the 2020 election. These developments have fueled concerns over whether political considerations are influencing media regulation.

    Gomez emphasized that Paramount would likely have won the lawsuit had it gone to trial. “Had Paramount chosen to fight this in court, they would have prevailed on the facts and the law,” she stated, reinforcing her view that the settlement was strategically motivated rather than legally necessary.

    Source: Reuters