On Friday, David Letterman delivered a blunt assessment of CBS’s cancellation of “The Late Show” franchise that he launched more than three decades ago.

The late-night legend, who became a household name in part for his on-air needling of network executives, called CBS’s decision to cancel Stephen Colbert’s program “pure cowardice.”

“One day, if not today, the people at CBS who have manipulated and handled this are going to be embarrassed,” he said. “This is gutless.”

The lashing came just days after the Tiffany Network suddenly axed “The Late Show with Stephen Colbert,” calling it a “purely financial decision” while its parent company, Paramount Global, was attempting its high-wire act merger with Skydance Media. The $8 billion merger, approved Thursday by Trump’s Federal Communications Commission, came at a staggering cost—not just in dollars, but in reputational cost and precedent.

To get the deal across the finish line with Trump’s administration, the Shari Redstone-controlled Paramount and Skydance made a series of extraordinary concessions. Skydance agreed to eliminate Paramount’s D.E.I. programs, hire an ombudsman to investigate ideological bias in news coverage, and commit to programming that reflects “a diversity of viewpoints.” Paramount also paid $16 million to settle a lawsuit filed by Donald Trump over a “60 Minutes” interview—despite calling the suit meritless in court. CBS News President Wendy McMahon and “60 Minutes” executive producer Bill Owens were both ousted in the process, causing internal convulsions and backlash within the network’s long trusted and unflinching news division.

As if that weren’t enough, Trump claims he has a side deal with Skydance chief David Ellison for $20 million worth of public service announcements aligned with his ideological agenda. While Paramount has denied knowledge of any such deal, Skydance has remained quiet.

The breadth of Paramount’s concessions is striking, especially when compared to the last time Trump tried to influence a media merger. In 2017, his administration attempted to block AT&T’s acquisition of Time Warner, evidently because of CNN’s coverage. AT&T fought back in court—and won. Paramount, by contrast, didn’t even try. They surrendered on nearly every front to quickly get its transaction approved.

And while the media landscape has changed dramatically since the AT&T–Time Warner fight, the principle remains. Paramount had a choice, and unlike others before it, it chose not to fight. And that decision has come at a heavy reputational cost.

Both Colbert and Jon Stewart—two of the company’s most visible voices—publicly denounced the settlement with Trump on their programs. Stewart accused CBS of “selling out” its flagship news division, and Colbert, whose show has led the late-night broadcast ratings race, called the payout “a big fat bribe.” Comedy Central’s “South Park” also skewered the deal with a Jesus character sent by Trump as part of a settlement with Paramount. “You really want to end up like Colbert?” he warned. “You guys got to stop being stupid. Just shut up, or we’re going to get canceled, you idiots!”

Rather than push back on the administration’s demands, Paramount opted for a path of least resistance—making a series of concessions that added up to something far more consequential. From settling a lawsuit it deemed meritless, to eliminating D.E.I. programs, ousting top news executives, and canceling its marquee star under highly questionable circumstances, the company gave ground on every front. Each move appeared designed to placate the administration, not defend its own values or legacy. What more could Trump have possibly asked for?

Thursday’s announcement from the FCC that the tortured merger had finally been approved echoed political talking points more than regulatory reasoning. Chairman Brendan Carr praised Skydance’s “written commitments” to root out bias and restore trust in CBS, asserting Americans “no longer trust the legacy national news media to report fully, accurately, and fairly.”

By choosing capitulation over confrontation, Paramount has created a roadmap that others may now feel pressured to follow. If this is the new cost of regulatory approval, what will future media companies be asked to trade away? The Paramount-Skydance merger may be done, but the precedent set will reverberate across the industry for years to come.