Paramount agrees to settle Trump lawsuit for $16 million

• Paramount and Skydance agreed to merge in a deal worth more than $8 billion last July.
• The deal is largely seen as an escape valve for owner Shari Redstone, who has faced pressure from shareholders to offload the legacy TV asset while it still has value.

Zoom in: "The settlement does not include a statement of apology or regret," per a statement from Paramount Global on the deal to settle the suit Trump filed over the editing of a "60 Minutes" interview with his 2024 election rival, former Vice President Harris.

• "The Company has agreed that in the future, 60 Minutes will release transcripts of interviews with eligible U.S. presidential candidates after such interviews have aired, subject to redactions as required for legal or national security concerns," according to the statement.
• Paramount said no amount will be paid directly or indirectly to the president or fellow plaintiff Rep. Ronny Jackson (R-Texas) under the agreement, but it will go toward their legal fees and costs and Trump's future presidential library.
• ABC struck a similar deal in December, paying $16 million to settle Trump's defamation lawsuit — though it also posted an editor's note expressing regret.

Catch up quick: Trump alleged that CBS News had engaged in election interference in the way it edited the Harris interview.

• He originally sought $10 billion in damages and later increased his claim in an amended filing to $20 billion.
• CBS denied wrongdoing and in March filed two motions to dismiss the amended complaint.

Between the lines: The lawsuit became more complicated in January, when the new, Trump-appointed Federal Communications Commission chair Brendan Carr said the agency would probe WCBS New York, claiming the same "60 Minutes" interview that aired on WCBS and other CBS affiliate stations violated its "news distortion" rules.

• CBS quickly complied with the investigation, handing over unedited transcripts of the interview.

What they're saying: The Writers Guild of America East slammed the settlement as a "transparent attempt to curry favors" with the Trump administration for approval of the Paramount-Skydance merger.

• "The Writers Guild of America East stands behind the exemplary work of our members at '60 Minutes' and CBS News. We wish their bosses at Paramount Global had the courage to do the same," it said in a statement.
• "Paramount's decision to capitulate to Trump threatens journalists' ability to do their job reporting on powerful public figures."
• Paramount emphasized in its statement that the lawsuit was "completely separate from, and unrelated to, the Skydance transaction and the FCC approval process" and that it "will abide by the legal process to defend our case."

For the record: A spokesperson for Trump's legal team said the president had delivered "another win for the American people" in the settlement "as he, once again, holds the Fake News media accountable for their wrongdoing and deceit."

• The spokesperson added in the statement, "CBS and Paramount Global realized the strength of this historic case and had no choice but to settle."

How it works: The FCC doesn't have jurisdiction over transactions related to national broadcast networks, as they don't have public broadcast licenses that require FCC approval. But local broadcast networks are subject to FCC rules.

• Paramount, in addition to the national CBS network, owns a slew of local CBS broadcast affiliates. A merger with Skydance would require FCC approval for the transfer of its local affiliate broadcast licenses.
• Typically, regulators — and especially pro-business Republicans — have ruled favorably on local broadcast deals.
• But this FCC probe of WCBS, the Freedom of the Press Foundation argues, is "a scare tactic, spectacle, and show trial" designed to "intimidate media organizations, influence editorial decisions, and suppress speech that's critical of the administration."

What to watch: How the settlement affects CBS' editorial reputation and morale at CBS News, and how the industry responds.

• Two major CBS News executives, CBS News and Stations president and CEO Wendy McMahon and longtime "60 Minutes" executive producer Bill Owens, abruptly exited in the last few months, citing concerns about journalistic independence.
• "Today is a sad day for press freedom," Jameel Jaffer, executive director of the Knight First Amendment Institute at Columbia University, said in a statement.
• "Paramount should have fought this extortionate lawsuit in court, and it would have prevailed. Now Trump's presidential library will be a permanent monument to Paramount's surrender, a continual reminder of its failure to defend freedoms that are essential to our democracy."
• The Freedom for the Press Foundation has threatened to sue Paramount if it settled with Trump.

Editor's note: This article has been updated with new details throughout.