$20M Deal: Paramount Holds Trump’s Skydance Fate in Its Hands

Money talks—especially when it's $20 million doing the whispering.

Paramount just slid into the driver's seat of Trump's Skydance decision with a settlement check fat enough to make a hedge fund manager blush. No fancy financial instruments here—just cold, hard influence.

Because in the end, even political theater bows to the almighty dollar.

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Trump’s team had earlier sought an apology, but Paramount had previously refused to issue one. The news was first reported by the Wall Street Journal, stating that talks are still fluid and the agreement could change.

Paramount Continues to Face Troubles

One of Trump’s attorneys has alleged that “CBS and Paramount targeted the President in an attempt to harm his reputation while committing the worst kind of election interference and fraud.” Paramount has been struggling to reach an amicable settlement with Trump’s team for months, but the talks have now reached an impasse. Last week, it was reported that the parties WOULD settle for $35 million, but at the last minute, Trump’s lawyers asked for $50 million.

Importantly, the company is seeking a solution that would protect its directors and officers from any potential future shareholder lawsuits or criminal charges related to alleged bribery. In a similar lawsuit faced by rival Disney (DIS) last year, the company settled the case by making a $15 million donation to Trump’s library and paying $1 million in legal fees.

Meanwhile, the Paramount-Skydance merger hangs in the balance as the Federal Communications Commission (FCC) continues to review the deal. The delayed deadline for the FCC’s review ends on July 5. Reports suggest that a settlement with TRUMP could influence the FCC’s decision to green light the merger, especially since the regulator is led by Trump’s supporter Brendan Carr. Notably, Trump recently praised Skydance CEO David Ellison, who is expected to lead the combined company, saying that he would do “a great job with it.” It remains to be seen whether Paramount will be able to settle the lawsuit this time with the proposed settlement offer.

Is Paramount Stock a Buy?

On TipRanks, PARA stock has a Hold consensus rating based on two Buys, eight Holds, and five Sell ratings. Also, the average Paramount Global price target of $12.08 implies 1.2% downside potential from current levels. Year-to-date, PARA stock has gained 17.8%.