There may be a new entrant in the annals of corporate hole-digging: Media titan Paramount, which owns CBS and recently said it’s canceling the top-rated “Late Show with Stephen Colbert.”

Paramount said it needs to cancel the Colbert show for “financial reasons” and leaked reports likely sourced to the company suggest the show loses around $40 million per year. But the decision reeks of Trumpian subterfuge, putting Paramount in the fraught corporate position of picking sides in one of President Trump’s many disputes over business and cultural priorities.

Paramount plans to merge this year with media firm Skydance, to help stabilize its finances and ease the transition from legacy media behemoth to a nimbler streaming operation. The two companies agreed on the $8 billion deal last year, when Joe Biden was president. The Securities and Exchange Commission approved the deal in February. That left the Federal Communications Commission, which must also sign off since the deal involves the transfer of broadcast licenses.

FCC approval was “widely seen as a formality,” as Deadline reported in April. But it didn’t come until July 24, months later than would have been likely under any president other than Trump. In the meanwhile, Paramount paid tribute to Trump in unprecedented ways likely to dog the company for months or years, with the cancellation of Colbert’s show fueling a barrage of criticism from Colbert himself and many allies, some of it on Paramount’s own airwaves.

Paramount clearly didn’t anticipate this sort of trouble when it arranged the deal last year. But when Trump won the presidency in November, Paramount faced new barriers to a buyout that otherwise might have been routine. That’s because of Trump’s personal beef with CBS and the news show “60 Minutes.” Trump sued the network last year as an individual, claiming the show distorted a 2024 interview with Kamala Harris, Trump’s foe in the presidential election, to give her favorable treatment.

Shortly after taking office in January, Trump appointed loyalist Brendan Carr to head the FCC. Then Trump converted the formerly independent agency into an arm of the White House’s policy and political operations. One of Carr’s first moves as Trump’s FCC boss was opening an investigation into the CBS for its interview with Harris, an unprecedented effort to use government power to intimidate a news organization.

“The chairman of the FCC has cagily created a new and coercive technique for operating outside the agency’s established statutes and procedures to attack corporate decisions he and Donald Trump do not like,” former FCC commissioner Tom Wheeler, now of the Brookings Institution, wrote in February. “Prime targets are media company editorial decisions.”