Sen. Elizabeth Warren (D-Mass.) has called for a formal investigation into President Donald Trump's settlement with Paramount Global (NASDAQ:PARA) (NASDAQ:PARAA).
What Happened: Last week, Paramount said it would pay $16 million to settle Trump's lawsuit over a "60 Minutes" segment. However, Trump later said the agreement is actually worth far more, reported Variety.
Speaking to reporters late Thursday, Trump said, "We did a deal for about $16 million plus $16 million, or maybe more than that, in advertising," the report noted, citing a White House pool report by a Washington Post reporter, Cat Zakrzewski.
"So it's a combination of 16 plus 16 plus. So it's like $32 [million] to maybe $35 million," the President stated.
See Also: Paramount Global Eyes Profitability, Analysts Assess Subscriber Surge And Cost Savings
On Tuesday, Warren once again highlighted the issue saying, "UPDATE: This just got worse. Donald Trump apparently cut a secret side deal for MILLIONS in pro-Trump ads."
"That would mean Paramount and its soon-to-be owner are shelling out $30 MILLION+ to support Trump — all while trying to get his approval on their merger. Is this bribery?"
Trump and Paramount did not immediately respond to Benzinga's request for comments.
Why It's Important: A New York Post report earlier this month had alleged a "side deal" under which CBS would air public service announcements promoting conservative causes linked to Trump, potentially valued at up to $20 million.
Paramount, however, denied any such arrangement. In a statement, the company said, "Contrary to some news reports or media speculation, Paramount's settlement with President Trump does not include PSAs or anything related to PSAs."
The settlement comes as the Skydance Media–Paramount merger awaits regulatory approval. Trump has also said that the "60 Minutes" settlement had nothing to do with his administration's approval of Skydance Media's pending acquisition of Paramount, the report added.
Meanwhile, Trump is now in settlement talks with YouTube parent Alphabet Inc.'s (NASDAQ:GOOG) (NASDAQ:GOOGL) Google over his lawsuit alleging political censorship after the platform banned him following the Jan. 6 Capitol riot.
Price Action: As of this writing, Paramount's Class A shares remained unchanged in after-hours trading at $23, while Class B shares dipped 0.24% to $12.60, according to Benzinga Pro data.
Benzinga's Edge Stock Rankings show that PARA maintains a steady upward trend over the short, medium and long term. However, despite its solid value score, the stock's quality ranking remains relatively lower. Additional performance details are available here.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
