Paramount Global (PARA) executives have conducted internal talks about the possibility of settling a lawsuit filed by President-elect Donald Trump over a CBS News interview with Vice President Kamala Harris, signaling an attempt to ease tensions with the incoming administration, The Wall Street Journal reported, citing people familiar with the situation.

The $10 billion lawsuit, accusing CBS of election interference by editing the interview to favor Harris, is complicating Paramount's planned merger with Skydance Media, a deal that may face increased scrutiny due to Trump's dissatisfaction with CBS News, the people told WSJ.

Brendan Carr, the incoming Federal Communications Commission's chairman, warned Paramount executives about potential issues regarding their planned merger last year, according to the report.

Executives at Paramount and Skydance are considering changes to CBS News' editorial practices to address bias concerns and ensure the merger's approval, WSJ said.

The Paramount-Skydance merger may encounter further challenges, with John Moolenaar, Republican chairman of the House select committee on China, suggesting that the deal should be reviewed by the Committee on Foreign Investment in the US due to Tencent Holdings, a recently blacklisted Chinese military-linked company, being an investor in Skydance, WSJ said.

Paramount and Skydance didn't immediately respond to a request for comment from MT Newswires.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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