Senate Probes Skydance CEO’s Trump Settlement Amid Paramount Merger Review

Three U.S. Senators are investigating potential undisclosed agreements between Skydance Media CEO David Ellison and former President Donald Trump. This inquiry comes as Skydance awaits regulatory approval from the Federal Communications Commission (FCC) for its proposed $8 billion merger with Paramount Global. The probe, led by Senators Elizabeth Warren, Bernie Sanders, and Ron Wyden, raises questions about the $16 million settlement Trump received from Paramount and its potential implications for the pending corporate transaction.

Investigation Details Emerge

The Senate inquiry focuses on the financial settlement reached between Donald Trump and Paramount, which was designed to cover Trump’s legal fees and contribute to a future presidential library. The agreement also stipulated that future transcripts of “60 Minutes” interviews with eligible U.S. presidential candidates would be shared after airing. Notably, the settlement did not include an apology or statement of regret from CBS regarding the editing of its October 7 interview with former Vice President Kamala Harris.

Trump’s Claims of Expanded Value

Adding to the complexity, former President Trump has publicly suggested the deal’s value could exceed $30 million. This higher figure, according to Trump, would include additional funds allocated for public service announcements (PSAs). While an individual close to the settlement negotiations indicated an anticipation of a “low-to-mid eight-figure allocation” for PSAs benefiting “conservative causes,” Paramount has denied that such PSAs are part of the settlement. Skydance has declined to comment on this aspect.

Skydance Media CEO David Ellison and former President Donald Trump, under Senate scrutiny regarding a significant settlement.

Senators Raise Corruption Questions

In a letter dispatched on Monday, Senators Warren, Sanders, and Wyden stated that Trump’s remarks “raise fresh questions about corruption.” These concerns are particularly salient given the ongoing FCC regulatory review of the Skydance-Paramount merger. Lawmakers are examining whether any arrangements between Ellison or Skydance and Trump could constitute undue influence or violate federal statutes.

FCC Merger Review Under Scrutiny

The senators are questioning whether the pending merger could be influenced by, or be a condition of, any side deals. This scrutiny extends to the potential for changes in content or operational decisions at Paramount or CBS. For more details on the merger process, see our coverage on Skydance Boss David Ellison’s Discussions with the FCC.

Concerns Over “The Late Show” Cancellation

The lawmakers’ letter also questioned whether Skydance may have played a role in the decision to cancel “The Late Show With Stephen Colbert.” This inquiry follows Colbert’s on-air criticism of the Paramount-Trump settlement, which he referred to as a “big fat bribe.”

Key Questions from Lawmakers

The three senators have requested comprehensive responses to seven specific questions from Skydance by August 4. These questions aim to clarify:

• Any existing arrangements for compensation, advertising, or promotional activities benefiting President Trump, his family, presidential library, or former administration officials.
• Discussions between David Ellison, Skydance executives, and Trump, his family, or administration officials regarding the Paramount-Skydance transaction.
• Involvement of Skydance executives in discussions concerning Trump’s lawsuit against CBS, including whether the pending merger was discussed.
• Agreements by Skydance or Ellison to modify Skydance’s, Paramount’s, or CBS’s content at the Trump Administration’s request to facilitate merger approval.
• Involvement of Skydance executives in discussions about the cancellation of “The Late Show With Stephen Colbert.”
• Skydance’s policies and procedures related to compliance with public corruption laws, specifically 18 U.S.C. 201.
• Details of any trainings conducted by Skydance for its staff or executives regarding public corruption law compliance.

A spokesperson for Skydance has declined to comment on the letter.

Broader Context: Anti-Corruption Efforts

The current investigation builds upon previous warnings from the senators that Paramount’s settlement with Trump could potentially violate federal anti-bribery laws. This aligns with a broader legislative push to enhance transparency in political fundraising.

Proposed Presidential Library Legislation

Senator Warren, along with other Democratic lawmakers, recently unveiled the “Presidential Library Anti-Corruption Act of 2025.” This proposed legislation aims to reform how presidential libraries are funded. Key provisions include:

• Requiring presidents to wait until after leaving office before fundraising or accepting donations, with limited exceptions for 501(c)(3) organizations subject to a $10,000 contribution cap.
• Prohibiting donations from foreign nationals, foreign governments, registered lobbyists, federal contractors, and individuals seeking presidential pardons for two years post-presidency.
• Banning the use of presidential library donations for personal expenses or unrelated financial obligations.
• Mandating the disclosure of all donations of $200 or more to the National Archives quarterly during a president’s term and five years thereafter, with donor information published online in a searchable format.

Calls for Full FCC Commission Vote

Beyond the legislative proposals, several Democratic lawmakers, including Senators Edward Markey and Ben Ray Luján, have urged the FCC to hold a full commission vote on the Skydance merger rather than approving the deal through its media bureau. Senator Markey and Senate Majority Leader Chuck Schumer have also called on FCC Chairman Brendan Carr to “cease interfering with the judgement of independent news organizations” and end the agency’s “partisan attacks” on CBS.

FCC Review Status and Skydance’s Position

The FCC’s review of the Skydance-Paramount merger, necessary due to the transfer of broadcast licenses, is ongoing. As of the latest update, the review has been underway for 248 days, exceeding the informal 180-day timeline the agency typically observes, though this is not a strict deadline. FCC Chairman Brendan Carr has previously stated that the discussions surrounding the Trump settlement were unrelated to the merger review process.

Ellison’s Meeting with FCC Chairman Carr

Skydance CEO David Ellison met with FCC Chairman Carr on July 15. During this meeting, Ellison reportedly “emphasized the public interest benefits” of the merger and expressed a commitment to unbiased journalism, diverse viewpoints, non-discrimination, and equal employment opportunity at the proposed New Paramount entity. Ellison also affirmed that the planned governance structure would “not be subject to any Chinese or other foreign influence,” addressing concerns about Tencent Holdings’ minority stake in Skydance.

The Paramount-Skydance deal’s closing deadline has been extended to October 6, following its second automatic 90-day extension. If the deal is not finalized by this date, both parties retain the option to terminate the agreement without incurring the $400 million breakup fee.