California Senate opens inquiry into Paramount amid Trump legal battle

Lawmakers in the California Senate plan to probe reports of a potential settlement between Hollywood giant Paramount and President Trump in connection with his ongoing lawsuit against CBS News.

The chair of the California State Senate Energy, Utilities & Communications Committee and the chair of the Judiciary Committee wrote in a letter to Paramount’s board and two former executives at CBS News to invite them to testify about the reported settlement talks.

The letter was first reported by Semafor.

In their letter, the lawmakers cited “the potential chilling effect of Paramount’s settlement on investigative and political journalism” and said their probe aimed to ensure “the integrity of California’s communications economy, ensuring that public-facing media enterprises compete based on content and quality, not influence, capitulation, or political appeasement.”

Paramount is currently engaged in mediation talks with Trump’s attorneys, who recently rejected a $15 million settlement offer and threatened further litigation, The Wall Street Journal reported earlier this week.

Paramount is currently trying to secure a multibillion-dollar merger with fellow entertainment giant Skydance, a deal that will need approval from regulators to go through.

Trump sued Paramount, CBS News and “60 Minutes” last fall over an interview the TV news magazine conducted with the Democratic nominee for president, former Vice President Kamala Harris, arguing it intentionally edited her answers to make her look better.

Earlier this month, a pair of Senate Democrats wrote to the Paramount board warning that a settlement with Trump could violate federal bribery law.