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Johannesburg - Political analysts on Friday reacted positively to news that Cosatu and some of its affiliates make up a large portion of Sekunjalo Independent Media's (SIM) shareholding.
SIM is buying Independent News and Media South Africa (INMSA).
Some analysts agreed that the Congress of SA Trade Unions' part ownership of INMSA would not affect editorial decision-making and reporting.
Steven Friedman said it was normal and natural for businesses to own newspapers in a free society.
"There is a difference between owning a stake in media and controlling what the media reports... it is often very small."
People who believed the governing party was taking over the media or that Cosatu's part ownership would have an affect on reporting showed an ignorance of how the industry worked.
"The idea that it can have some kind of control over editorial decision-making is not so," said Friedman.
On Thursday, Sekunjalo chairperson Iqbal Surve announced that Cosatu and some of its affiliates made up a large portion of SIM.
Employees of INMSA would get 10% of the shares.
The two shareholders of INMSA would be Sekunjalo, with 75%, and the Government Employees' Pension Fund, through the Public Investment Corporation, with 25%.
Surve said 63% of SIM's shares would be held by Sekunjalo Investment Holdings, Cosatu's investment company Kopano Ke Matla, the SA Clothing and Textile Workers' Union's Investments Group, the Food and Allied Workers' Union, and employees.
The other 37% would be held by a number of "broad-based value adding partners", including the Black Business Chamber (Western Cape) and various independent women's business community organisations.
Analyst Aubrey Matshiqi said the power of money in the context of monopoly capital would have an influence over editorial content. But for a consortium like SIM it would be different.
In terms of monopoly capital, shareholders could not sit in the newsroom and tell reporters what to write, he said.
But, the relationship between editorial and the commercial sector revolved around money, and sometimes "power is skewed in favour of money".
"And therefore those with money don't have to sit in the newsroom to exert their influence," said Matshiqi.
However, because SIM's shareholding was so diverse it was "potentially a good thing", as it was not a monopoly.
"South African media is dominated by four powerful media houses... and media concentration in a few hands in South Africa is not a good thing for democracy," he said.
Although there were different newspapers and different television stations, the views and news remained the same.
"One hopes that Sekunjalo and its structure of shareholding... is the beginning of a process of diluting this media concentration.
"One hopes one of the outcomes of this change and involvement of groups such as Cosatu, will provide an alternative perspective," said Matshiqi.
Analyst Zwelethu Jolobe said Cosatu's shares in SIM would have no affect on editorial decision-making.
"No, it would not have an affect... Most newspapers are owned by different entities. The composition will in no way affect decisions in editorial."
"...For example, whoever owns News24, whoever owns Avusa, does not influence what goes out in the end. I wouldn't expect anything different to come out of Sekunjalo."
