California state senators are investigating Paramount over the reported $15 million it offered President Donald Trump to settle his lawsuit against the company — and they’re inviting top former employees to speak out.
The news was first reported by Semafor, which obtained a letter the state’s Senate Energy, Utilities and Communications Committee sent former “60 Minutes” producer Bill Owens and former CBS News president Wendy McMahon, who both left the Paramount-owned network as rumblings about a potential settlement circulated.
“Your recent resignations from CBS’s leadership, amid public reports of internal concern about the editorial and ethical implications of the proposed settlement, suggest that you may possess important, first-hand knowledge relevant to our legislative oversight responsibilities,” committee chairs Sens. Josh Becker and Thomas Umberg wrote, asking them to appear at a hearing.
The senators said they’re concerned about the implications of a major media company being “allowed to use politically motivated settlements to secure merger approvals or otherwise shape regulatory treatment,” noting that could disrupt fair competition in California’s media industry and disadvantage viewers who “deserve access to independent, unpressured journalism.”
The letter emphasizes The Wall Street Journal’s report earlier this week alleging that Paramount recently offered Trump $15 million to settle, and that Trump countered with a demand for more than $25 million to end his lawsuit, which accuses CBS News of doctoring footage from its “60 Minutes” interview with Kamala Harris to boost her chances of winning the presidential election.
In their resignations, Owens and McMahon both indicated they disagreed with Paramount’s approach to the lawsuit, with Owens saying he felt he’d lost journalistic independence and McMahon saying she and Paramount did “not agree on the path forward.”
The squabble over the lawsuit comes as Paramount tries to complete an $8 billion merger with Skydance Media, which requires approval from the Federal Communications Commission, headed by Trump appointee Brendan Carr.
The state senators said that if Paramount settles in order to secure regulatory benefits, that could constitute a violation of federal bribery laws, California competition laws and other regulations.
But perhaps even more concerning, the senators wrote, “is the potential chilling effect of Paramount’s settlement on investigative and political journalism.”