ISLAMABAD – Paramount Skydance’s planned acquisition of Warner Bros. Discovery will bring CNN and CBS News under the same corporate ownership, while a new Editorial Independence Board will be established to oversee journalistic standards at the two major US news organisations.
The board is part of a settlement reached between Paramount and a coalition of 12 US states that had challenged the proposed merger. The agreement removes a major legal obstacle to the $110 billion transaction.
Under the settlement, the Editorial Independence Board will establish a set of “News Editorial Principles” based on the existing standards and practices of CNN and CBS News.
The principles will focus on journalistic integrity, accuracy, fairness and editorial independence.
The board will also handle disputes involving journalists and management at CNN and CBS News when employees allege violations of the agreed editorial principles. It will also consider disputes involving claims of reporting bias or failures to meet the established standards of fairness.
How the Editorial Independence Board will work
The board will consist of five journalists, each required to have at least 10 years of journalism experience. Members may be active or retired journalists.
They will be appointed by the board of directors of the combined Paramount-Warner company within 180 days of the merger closing. Each member will serve a three-year term and can only be removed for good cause.
The settlement also places restrictions on the composition of the board. No more than two members may be affiliated with the same political party.
Government officials and representatives of government entities cannot serve on the board. Government bodies will also have no approval rights over its appointments.
The agreement further bars officers, directors, shareholders and non-journalist employees or contractors of the combined company from serving on the board. The board will report to the corporate board through the company’s chief compliance officer.
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What will the board oversee?
The board’s remit will cover news and editorial content produced for distribution in the United States.
Its responsibilities include monitoring adherence to ethical journalism standards and protecting editorial independence from the company’s ownership and shareholders.
However, the settlement does not give the board direct control over who leads CNN or CBS News. It also does not prevent the two news organisations from operating under common ownership.
The effectiveness of the new structure will therefore depend on how the board interprets its principles and handles disputes between newsroom employees and management.
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Merger expected to close in early October
The settlement follows months of legal challenges to Paramount’s proposed acquisition of Warner Bros. Discovery.
The combined company would bring together Paramount’s CBS and Paramount+ operations with Warner Bros. Discovery’s Warner Bros. studios, HBO, CNN and other television networks.
The companies are now expected to complete the transaction in early October, according to reports following the settlement.
The settlement also includes commitments related to film production and other aspects of the merger. Paramount has agreed to produce at least 30 theatrical films annually during the first two years following the transaction and 32 films annually during the following three years. It has also committed to increasing US film production spending.
For CNN and CBS News, the Editorial Independence Board will become one of the main safeguards governing newsroom standards after the merger.
Its members will have to balance the stated principles of accuracy, fairness and editorial independence with their responsibilities to the newly combined company.
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Key points:
- Paramount Skydance has reached a settlement with 12 US states over its planned acquisition of Warner Bros. Discovery.
- The agreement requires the creation of a five-member Editorial Independence Board for CNN and CBS News.
- The board will oversee principles covering accuracy, fairness, journalistic integrity and editorial independence.
- Members must have at least 10 years of journalism experience and will serve three-year terms.
- Paramount is expected to complete the $110 billion merger with Warner Bros. Discovery in early October, subject to the remaining process.
