Lawyers for Paramount and President Trump have agreed to appoint a mediator in his $20 billion lawsuit against CBS, according to two people with knowledge of the decision.
The move to bring in a mediator is another indicator that the two sides are trying to resolve the case, over the editing of a “60 Minutes” interview with Vice President Kamala Harris, out of court. A mediator could help them reach a settlement, but whether they will do so remains far from certain.
Paramount declined to comment. Ed Paltzik, a lawyer for Mr. Trump, said in a statement: “President Trump will pursue this vital matter to its just and rightful conclusion.”
Mr. Trump sued CBS days before the 2024 election, accusing the company of deceptively editing the interview with his Democratic opponent.
Paramount, CBS’s parent company, began settlement talks with Mr. Trump this year. Those talks have created discord at Paramount, with employees at CBS News strongly opposed to any settlement. Bill Owens, the executive producer of “60 Minutes,” told the show’s staff this month that he would not apologize as part of any prospective settlement after The New York Times reported that the settlement talks with Mr. Trump were underway.
The lawsuit has complicated Paramount’s merger with Skydance, a deal that would unite an up-and-coming media start-up backed by the tech mogul Larry Ellison with the gilded Hollywood studio behind “The Godfather” and “Rosemary’s Baby.” The multibillion-dollar deal, struck last year, would end the Redstone family’s decades-long run atop Paramount and anoint Mr. Ellison and his son, David, in their stead.
The settlement discussions set off fears among media lawyers that a deal would embolden Mr. Trump and his allies to file or threaten more litigation against news outlets.
Many Paramount executives believe that settling the lawsuit would increase the odds that the Trump administration did not block or delay the merger with Skydance. Forgoing an opportunity to settle could also lead to shareholder lawsuits, especially if Mr. Trump prevails in court and wins a big judgment.
Still, executives at Paramount are concerned that a settlement with Mr. Trump could lead to legal liabilities that are not covered by conventional corporate insurance policies, according to a person familiar with their concerns.
The Wall Street Journal reported earlier on the potential legal liabilities.
A filing last week in federal court in Texas laid out a road map for the legal battle between Paramount and Mr. Trump. According to the filing, both parties are required to try mediation before Dec. 20. If they can’t agree on a mediator, they must ask the court to appoint one at least 14 days before the mediation deadline.
CBS provided a transcript of the Harris interview to the Federal Communications Commission, which later released it to the public. In a statement on the CBS News website, the company said the transcript showed that the “60 Minutes” broadcast “was not doctored or deceitful.”
David Enrich contributed reporting.