Paramount Considers Creating Oversight Board at CNN

Paramount Skydance, the media conglomerate led by David Ellison, is considering the creation of an oversight board at CNN in an effort to address concerns about the network's editorial independence under the proposed $110 billion merger with Warner Bros. Discovery. The talks, reported by the Wall Street Journal, come as the deal is currently on hold due to litigation from 12 state attorneys general, with a trial set for March.

According to individuals familiar with the discussions, the idea of a CNN oversight board was proposed before the state AGs' lawsuit was filed. In a New York Times op-ed, Ellison argued that the lawsuit centers around his ownership of CNN, not antitrust concerns. He emphasized CNN's commitment to journalistic integrity and independence, stating that the network would continue to answer to the facts and the people it serves.

Ellison's business partner, Ari Emanuel, previously floated the idea of an editorial board during a CNBC interview, suggesting it as a way to focus on filmmaking and television, which have faced challenges over the past six years. However, the pair has also stated that "all options are on the table" in order to resolve the lawsuit and allow the merger to proceed.

Paramount has agreed to delay the merger's closing until five days after the outcome of the trial, or June 1, 2027, whichever comes first. In response to the lawsuit, Ellison has threatened to relocate the company's operations out of California if Attorney General Rob Bonta does not agree to settlement talks by October 1. Bonta dismissed Ellison's threat as "blackmail" and stated that he is open to settlement discussions, but emphasized that Paramount will need to propose structural remedies, such as divestments, rather than behavioral remedies like Ellison's promise of 30 theatrical film releases per year. Bonta reiterated that a sale of CNN alone is insufficient to address the states' concerns.