CBS's parent company, Paramount Global, is reportedly considering settling a $10 billion lawsuit filed by Donald Trump over the editing of a 60 Minutes interview with Kamala Harris. The lawsuit, which many have deemed frivolous, alleges that CBS used deceitful and manipulative editing to distort Harris' response to a question about the war in Gaza. According to The Wall Street Journal, Paramount executives have discussed settling the suit to reduce friction with the incoming administration, ahead of a government review of its merger with Skydance.

The development comes as Trump's incoming FCC chairman, Brendan Carr, has warned Paramount executives that the president's dissatisfaction with CBS News could make the merger review process more challenging. Carr has publicly expressed his concerns, stating that the lawsuit over the 60 Minutes transcript is likely to arise during the FCC's review of the transaction. This has raised concerns about the potential for political interference in the merger review process.

The lawsuit, which was filed in 2021, claims that CBS aired two differently edited versions of Harris' response, thereby engaging in "deceitful, deceptive manipulation of news." However, many have dismissed the lawsuit as baseless, with one law professor calling it "so ill grounded that it comes close to being sanctionable as frivolous." Despite this, Paramount appears to be taking a cautious approach, potentially opting to settle the lawsuit to avoid any potential hurdles in the merger review process.

This move is reminiscent of Disney's recent decision to pay $15 million to Trump's presidential foundation and museum to settle a defamation lawsuit. Similarly, Mark Zuckerberg has been accused of redirecting Meta's policies to the right while meeting with Trump, reportedly to mediate a lawsuit Trump brought against Facebook and Zuckerberg in 2021. These developments have sparked concerns about the influence of political pressure on the tech industry and the potential erosion of free speech.

The implications of this development are far-reaching, with potential consequences for the future of media mergers and the role of political influence in the regulatory process. As the tech industry continues to evolve, it remains to be seen how companies will navigate the complex landscape of political pressure and regulatory scrutiny. One thing is clear, however: the potential settlement of Trump's lawsuit has significant implications for the future of free speech and the tech industry as a whole.