Paramount weighs CNN editorial board as $81 billion deal stalls

Paramount is weighing an editorial board for CNN to ease independence concerns as its $81 billion Warner Bros. Discovery takeover faces a March antitrust trial.

Paramount has discussed creating an editorial board for CNN and other safeguards to ease concerns over the independence of its news operations, as its $81 billion acquisition of Warner Bros. Discovery sits frozen by a 12-state antitrust lawsuit with a trial scheduled for March.

"We always remain open to internal improvements to journalistic integrity," Paramount said in a statement, while California Attorney General Rob Bonta, who leads the coalition of 12 states, said at a Politico conference that "we will be open to any proposals" but "right now, we're focused on litigation and going to trial."

The internal discussions about establishing an oversight committee for news began before the lawsuit was filed, according to people familiar with the talks. Paramount, which owns CBS News, agreed last year to pay $16 million to settle a lawsuit by President Trump over the editing of a "60 Minutes" interview with former Vice President Kamala Harris. Some CBS correspondents have alleged political interference since Ellison named Free Press founder Bari Weiss as CBS News editor in chief last fall; CBS has denied such interference.

The deal, cleared by the U.S. Justice Department and regulators in the European Union, the U.K. and elsewhere, is on hold until a court rules on the states' challenge or June 1, 2027. Paramount agreed to that timeline after the states sued, and a federal judge has scheduled a March 2 trial in Oakland. Paramount shares rose 2.40 percent on Wednesday while Warner Bros. Discovery gained 1.63 percent.

The editorial board concept is not new. When Rupert Murdoch's News Corp bought Wall Street Journal publisher Dow Jones in 2007, the company agreed to establish a special committee to ensure the objectivity and independence of Dow Jones's publications. Ariel Emanuel, the Hollywood power broker and TKO Group chief executive who is close with Ellison and supports the deal, suggested the idea of "an editorial board over the news organization" in a CNBC interview earlier this month "so that everybody's calm about news and possibly Larry Ellison controlling CNN and CBS."

Ellison, the son of billionaire Oracle co-founder Larry Ellison, a close ally of Trump, said in a New York Times opinion piece last week that he believes the lawsuit is not really about antitrust but is intended to prevent him from owning CNN. "The issue is whether I can be trusted as a steward of Warner's CNN," he wrote. CNN's reporting has been critical of Trump, and the president frequently complains about the network's coverage.

The political stakes extend beyond the courtroom. Rep. Jamie Raskin, the top Democrat on the House Judiciary Committee, sent a new letter to Ellison this week accusing him of "colluding" with Trump and urging him to answer questions, according to a copy obtained by CNN. Raskin's letter cites an anonymously sourced Wall Street Journal report that Ellison offered assurances to Trump administration officials that he would make sweeping changes to CNN if he bought Warner. Sen. Elizabeth Warren wrote on social media that the merger "isn't about creating better entertainment. It's about cutting costs & squeezing workers."

Relocation threat escalates the fight

Paramount chief legal officer Makan Delrahim said at the Politico conference that "we would be delighted to engage" in settlement talks "in order to repair the industry, create more jobs, bring more jobs and production back." But a report by Puck's Matt Belloni that Ellison told Paramount's leadership he intends to move the company out of California if the antitrust case isn't settled by Oct. 1 has escalated tensions. Bonta called the reported threat "an attempt to blackmail the regulators who are daring to enforce the law fairly and firmly." Delrahim said it is not blackmail and argued the merger "is going to be good — not only for California — it'll be good for America."

The outcome of the March trial will determine not just the fate of the $81 billion deal but the structure of American news media. If the states prevail, Paramount and Warner Bros. Discovery remain separate, and CNN stays under current ownership. If the deal closes, the editorial board discussions suggest Ellison is preparing governance safeguards to shield the network from accusations of political influence — a calculation that reflects how deeply the merger has become entangled with the Trump administration.

This article is for informational purposes only and does not constitute investment advice.