California lawmakers launch probe into Paramount-Trump $15M settlement talks

Sacramento, California – California state lawmakers are opening a formal inquiry into reported settlement discussions between Paramount Global and former President Donald Trump, raising alarms over the potential impact such a deal could have on journalistic integrity and the state’s communications sector.

Chairs of the California Senate Judiciary and Energy, Utilities & Communications Committees have requested testimony from Paramount’s board and two former CBS News executives as part of the investigation. The request follows reports that Paramount offered Trump a $15 million settlement to resolve a lawsuit he filed last year against the company, CBS News, and “60 Minutes.” Trump alleged that an interview with Democratic presidential nominee Kamala Harris was deceptively edited to favor her politically.

The Wall Street Journal revealed earlier this week that Trump rejected the settlement and is pursuing further litigation. At the same time, Paramount is engaged in sensitive merger negotiations with Skydance Media, a multibillion-dollar deal that would require regulatory approval. Lawmakers now question whether the settlement offer was made to curry favor with federal regulators or mitigate risks that might interfere with the merger.

The Senate probe comes amid heightened scrutiny following the abrupt departures of two top CBS News figures—former CEO Wendy McMahon and “60 Minutes” Executive Producer Bill Owens. Owens left in April, citing concerns over editorial independence during the Trump legal fight, while McMahon stepped down earlier this month, reportedly due to disagreements over how the company was handling the litigation.

In a letter first reported by Semafor, state Sens. Tom Umberg and Josh Becker expressed concern that Paramount’s willingness to settle a “frivolous” lawsuit might violate California’s anti-competitiveness laws and federal anti-bribery statutes. They also raised the possibility that Paramount misused corporate resources or failed to uphold its fiduciary responsibilities to shareholders.

The lawmakers emphasized that the state has a vested interest in ensuring California-based media outlets compete fairly and operate independently, without political interference or fear of financial coercion. They warned that a settlement of this nature could create a chilling effect on investigative and political journalism, particularly for smaller media organizations without the resources to defend themselves against similar legal threats.

The inquiry will seek to determine whether Paramount’s leadership pursued a deal with Trump for improper reasons and if that decision compromised the company’s ethical standards or journalistic credibility. Former CBS executives have been invited to provide firsthand accounts of internal deliberations related to the case.

Paramount has declined to comment on the matter.