Member Newsletter
In a clearly choreographed series of announcements over the course of late last week, one tech CEO after another announced they were contributing $1 million to the Trump inaugural committee. This comes after the earlier endorsement controversies at The Washington Post and The Los Angeles Times. Then over the weekend ABC News agreed to give Trump $16 million and issue him a personal apology to settle his ongoing defamation suit. The critical factor here is that the suit — over George Stephanopoulos’ use of the term “rape” to describe the E. Jean Carroll jury’s finding against Trump — is not only almost impossible to win under current First Amendment law but over claims that are affirmatively accurate, as no less than the judge in the case confirmed.
Someone asked me over the weekend why I thought ABC settled the case on such adverse terms. Were they trying to prevent embarrassing facts coming out in discovery? I told this person that while I didn’t know specifically and couldn’t categorically rule that out, I was nearly certain that wasn’t true. The story here is basically identical to the $1 million initiation fees from the tech executives. Trump makes clear that he’ll make trouble for anyone who doesn’t make nice and let him wet his beak. For a comparatively small sum, you can make a start at being part of his club. Yes, ABC paid a bit more. But these are still small sums for a big diversified national or international corporation. (Disney’s market cap is just over $200 billion.) The answer, I am almost certain, is that the specifics of the lawsuit became irrelevant. Given Disney’s specific situation, the price of the initiation fee was $16 million. So they paid it. No big corporation wants to start Trump 2.0 on Trump’s bad side. It’s as simple as that.