Why the Paramount-Skydance merger remains in FCC purgatory

Importance Score: 75 / 100 🔴

FCC Chairman Carr Expresses Discontent with CBS Amidst Content Inquiry

Federal Communications Commission (FCC) Chairman Brendan Carr is reportedly dissatisfied with CBS, a sentiment that could have significant financial repercussions for the network. Concerns over a probe into potential violations of the FCC’s public interest regulations, specifically related to a contentious “60 Minutes” interview with Vice President Kamala Harris, are at the heart of the issue. This FCC scrutiny is becoming a major sticking point for CBS and its parent company, Paramount Global.

FCC Investigation into “60 Minutes” Interview

The ongoing inquiry stems from allegations that CBS News may have breached FCC rules concerning balanced and objective reporting. The controversy centers around the editing of a “60 Minutes” segment featuring Vice President Harris. Critics suggest that the broadcast network selectively edited the interview to present the Vice President in a more favorable light, particularly given the approaching 2024 election cycle. This investigation not only raises ethical questions about CBS News’ journalistic practices but also poses an obstacle to the proposed acquisition of Paramount Global by Skydance Media.

Carr’s Rejection of CBS’s Defense

CBS News attempted to address the FCC’s concerns by releasing the full transcript of the interview. The network argued that the complete transcript demonstrated the editing was fair and did not violate public interest rules, thus requesting the FCC to conclude its investigation. However, Chairman Carr firmly dismissed this proposition, asserting that the FCC’s inquiry would continue. Sources familiar with Chairman Carr’s perspective indicate he holds a more critical view privately.

Continued Investigation and Lack of Resolution

According to informed sources, Chairman Carr believes CBS has not taken adequate steps to resolve the FCC’s investigation. This includes addressing broader concerns about alleged bias within CBS News programming. One FCC official, familiar with Carr’s stance, indicated that the matter is far from settled, suggesting that unless CBS offers substantial remedies, the investigation is likely to persist.

Potential Delay for Paramount-Skydance Merger

The FCC’s ongoing investigation introduces considerable uncertainty and could significantly delay the anticipated merger between Paramount Global and Skydance Media. Without a resolution or settlement, the FCC review process could extend for weeks or even months, further complicating and postponing the deal. Neither the FCC nor CBS representatives have offered official comments on the matter.

Skydance Considers Remedial Actions

Skydance Media, eager to finalize its acquisition of Paramount Global amidst competing bids, is reportedly exploring measures to expedite the FCC approval process. These potential remedies include the implementation of an independent ombudsman to oversee CBS News content and ensure impartiality in its reporting.

Trump Lawsuit and Regulatory Context

Adding to Paramount’s challenges is a substantial $20 billion lawsuit filed by former President Trump against CBS, directly related to the Kamala Harris interview. The FCC’s regulatory authority over broadcast media is central to this situation. Unlike cable networks, broadcast networks utilize public airwaves and are subject to FCC oversight. The agency possesses the power to deny broadcast licenses and impede mergers if there is evidence of biased news content that contravenes public interest standards.

Allegations of Left-Leaning Bias at CBS News

CBS News has faced persistent accusations of a left-leaning bias in its news coverage for several years. The “60 Minutes” interview with Vice President Harris deepened these concerns following its broadcast on October 7th. Conservative groups, such as the Center For American Rights (CAR), highlighted discrepancies between an initial promotional clip of the interview and the final televised version. Specifically, they pointed to alterations in Vice President Harris’s response concerning a question about the Middle East, suggesting the aired version presented a more coherent answer.

FCC Complaint and Merger Implications

Following the discovery of these discrepancies, CAR filed a formal complaint with the FCC. This complaint triggered the current FCC investigation that is now impacting the timeline for the Skydance-Paramount merger. The investigation remains a key factor in the ongoing deliberations surrounding the media deal.


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