Paramount Pays Trump $16 Million as GEO Defends Deal Amid Internal Backlash

Network Ten owner Paramount has agreed to pay $16 million to settle President Donald Trump’s lawsuit over a controversial “60 Minutes” interview with former Vice President Kamala Harris, but the media giant’s CEO faces internal backlash over claims the deal protected the company’s reputation.

Paramount co-CEO George Cheeks insisted Wednesday that the settlement saved the company from “reputational damage,” but network insiders dismissed his explanation as corporate spin.

“What the f-k is he talking about? The damage has already been done,” a veteran CBS journalist told The New York Post.

“Trump has trashed them for what a year now? (Cheeks) can spin it any way he wants.”

A second CBS insider described the settlement as “a sad day for the journalistic community” with “seismic” reputational damage to the flagship news program.

The settlement resolves Trump’s $20 billion lawsuit filed in Texas, which alleges that CBS deceptively edited the Harris interview to make her appear more coherent during the final weeks of the presidential campaign.

The agreement includes payments to Trump’s future presidential library and legal fees, but notably does not require CBS to issue an apology for the alleged editorial manipulation.

Cheeks, who oversees CBS as part of Paramount’s three-person leadership structure, defended the decision during the company’s annual shareholders meeting.

He argued the settlement helped CBS avoid a costly legal battle and “an adverse” judgment that could have produced “significant financial as well as reputational damage.”

The $16 million payment matches the amount ABC paid Trump in December to settle a separate defamation lawsuit.

The settlement comes with operational changes for CBS News, including what sources call the “Trump Rule,” requiring the network to promptly release full, unedited transcripts of future presidential candidate interviews.

This transparency requirement represents a significant shift in how the network handles political coverage and could influence editorial decisions for future election cycles.

The legal dispute contributed to significant leadership turnover at CBS News, with longtime “60 Minutes” executive producer Bill Owens resigning in April, citing loss of journalistic independence during settlement negotiations.

CBS News CEO Wendy McMahon stepped down a month later, stating it became “clear” that she and the company disagreed on the “path forward.”

McMahon reportedly opposed issuing an apology to Trump as part of any settlement agreement.

The settlement removes a major obstacle to Paramount’s pending $8 billion merger with independent studio Skydance Media, which has been under Federal Communications Commission review.

Sources suggest the legal resolution will help secure regulatory approval for the deal, with controlling shareholder Shari Redstone positioned to receive approximately $1.75 billion if the merger proceeds.

One CBS source with knowledge of the situation credited Cheeks with clearing the way for the merger, noting that “sacrifices had to be made to get the lawsuit settled, and George made them. The money is just part of the story.”

The source suggested that resolving the lawsuit was necessary to complete the ownership transition and advance merger negotiations.

The settlement represents the latest in a series of legal agreements between major media companies and Trump, following similar deals with Disney’s ABC News, Meta, and X.

Disney agreed to pay $15 million plus legal fees in December, while Meta paid $25 million and X approximately $10 million to resolve their respective disputes with the president.

FCC Chairman Brendan Carr continues investigating whether CBS violated the agency’s “news distortion” policy based on a conservative group’s complaint about the interview editing.

The ongoing regulatory scrutiny could still impact the Paramount-Skydance merger approval process, though the companies maintain the lawsuit settlement is unrelated to the transaction.