The Late Show host Stephen Colbert.
The $US8 billion sale of Paramount CBS, the owner of Network 10 in Australia, to television and movie production company Skydance has been given approval by regulators in the US, with conditions branded as politically motivated.
The new owner had to promise to end “discriminatory” DEI policies, to route out bias in news reporting and appoint an ombudsman.
“Americans no longer trust the legacy national news media to report fully, accurately, and fairly,” said Federal Communications Commission (FCC) chairman Brendan Carr.
“It is time for a change. That is why I welcome Skydance’s commitment to make significant changes at the once storied CBS broadcast network.”
However, critics say this is an example of a pay-for-play regulatory environment.
Paramount had this month agreed to pay $US16 million, destined for the Trump Presidential Library, to settle a lawsuit by president Trump who alleged the CBS News program 60 Minutes had edited an interview with presidential candidate Kamala Harris to make her look better.
Critics also point to the axing of CBS’s The Late Show whose host Stephen Colbert has been a frequent critic of the Trump regime. The Writers Guild of America described the decision as a “bribe” to keep in with Washington.
One of three FCC commissioners, Anna M. Gomez, after the deal was approved two for and one against, said the American public will ultimately pay the price for the “reckless” approval.
“In an unprecedented move, this once-independent FCC used its vast power to pressure Paramount to broker a private legal settlement and further erode press freedom,” she said.
“Once again, this agency is undermining legitimate efforts to combat discrimination and expand opportunity by overstepping its authority and intervening in employment matters reserved for other government entities with proper jurisdiction on these issues.
“Even more alarming, it is now imposing never-before-seen controls over newsroom decisions and editorial judgment, in direct violation of the First Amendment and the law.”
However, FCCC chairman Carr said Skydance’s written commitments ensure the new company’s programming embodies a diversity of viewpoints from across the political and ideological spectrum.
“Skydance will also adopt measures that can root out the bias that has undermined trust in the national news media,” he said.
“These commitments, if implemented, would enable CBS to operate in the public interest and focus on fair, unbiased, and fact-based coverage. Doing so would begin the process of earning back Americans’ trust.
“Today’s decision also marks another step forward in the FCC’s efforts to eliminate invidious forms of DEI discrimination.
“And Skydance’s commitment to enhancing local news and reporting—coverage valued by the public—will also inure to the benefit of the American people.”
The Paramount-Skydance approval echoes that of the Omnicom takeover of IPG where the regulator sought, and received, assurances that the new entity would not steer ads to or away from publishers based on political content.
Staff cuts, on top of recent layoffs, are expected when the Skydance deal closes, reportedly in the next two weeks. Skydance is seeking $US2 billion in cost savings.
One report suggested a sell off assets and a shift away from its linear TV business.
David Ellison, the founder of Skydance, a movie producer and the son of Oracle co-founder Larry Ellison, will be CEO of the new entity, Paramount Skydance.
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