Paramount Global just settled a $16 million lawsuit with former President Donald Trump, despite CBS previously calling the case baseless. CEO George Cheeks told shareholders there was a strategic reason for the payout—likely tied to smoothing the path for Paramount’s impending merger with Skydance. The deal seems to be in its final stages, and this settlement might be a way to clear legal hurdles before closing.

Editor’s Note: Mergers are messy, and legal loose ends can delay or derail them. By settling Trump’s lawsuit—even if CBS once insisted it was frivolous—Paramount might be trying to avoid last-minute drama that could spook investors or regulators. It’s a reminder that in big business, sometimes it’s cheaper to pay up than fight, especially when billions are on the line.