Democratic Congressmen Launch Probe Into Administration Role in Paramount-Skydance Merger

Two leading House Democrats say they are investigating the $7 billion merger between Paramount and Skydance, citing concerns about the deal’s approval process under the Trump administration. Congressmen Jamie Raskin of Maryland and Frank Pallone Jr. of New Jersey, ranking members of the House Judiciary and Energy and Commerce committees respectively, have demanded documents, communications, and detailed answers from Paramount’s leadership.The inquiry comes amid suspicions that Paramount and Skydance may have acquiesced to what the two congressmen call “illegitimate demands” from President Trump in order to secure approval for the merger from the Federal Communications Commission. A core focus of the investigation is a $16 million settlement Paramount reached with Mr. Trump, which ended a lawsuit he had filed against CBS News, a Paramount subsidiary. The lawsuit stemmed from a “60 Minutes” interview with Vice President Kamala Harris, which Mr. Trump had claimed was deceptively edited to favor his political rival. “The settlement raises significant concerns that Donald Trump demanded and Paramount paid an illegal bribe,” the two congressmen wrote in a letter to the CEO of Paramount Skydance Corporation, David Ellison, CNBC reports. The settlement, agreed upon shortly before the FCC approved the merger in July, is under scrutiny for potentially being a condition of the regulatory approval. The lawmakers also raised concerns about Mr. Trump’s subsequent public boasts that the merged company has promised an additional $20 million in “Advertising, PSAs, or similar Programming.” Such a “side deal,” they wrote, would constitute a bribe if it were contingent upon regulatory approval. “This offer was necessarily contingent on the FCC approving the deal and does not appear to present any legitimate value to the public, only to President Trump,” the pair wrote. “Therefore, this appears to be an offer of payment and benefits to a government official designed to achieve a specific outcome from the government — in other words, a bribe.” The lawmakers further highlighted Paramount’s termination of certain corporate diversity and inclusion initiatives, pointing to statements by Mr. Ellison about steering the company toward programming with “more diverse viewpoints.” They say this development demonstrates an effort to align the network’s editorial policies with the preferences expressed by the Trump administration. The investigation may extend to potential violations of federal bribery and anti-corruption statutes. “For both Paramount and Skydance to acquiesce to President Trump’s meritless claims in order to consummate the merger demonstrates extreme disregard for anything that might stand in the way of profit,” the lawmakers wrote.The letter to Mr. Ellison, dated Wednesday, includes a two-week deadline for Paramount to submit a trove of requested materials, including all communications between the company, Mr. Trump, the Trump Organization, and the FCC regarding the merger.

Democratic Congressmen Launch Probe Into Administration Role in Paramount-Skydance Merger

Democratic Congressmen Launch Probe Into Administration Role in Paramount-Skydance Merger

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