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Israel's prime minister has reached a deal with his finance minister over the fate of the country's state-run broadcasting authority, defusing a crisis that threatened to force early elections but drawing criticism that he was trying to weaken a critical media.

At issue is the future of the struggling state-run Israel Broadcasting Authority.

Benjamin Netanyahu had initially ordered it shut down and replaced with a new corporation, only to reverse course once its emerging personnel did not seem favourable to his administration. The crisis drew speculation Netanyahu's coalition could fall.

Thursday's compromise will have a new broadcaster airing soon but without a news division. Netanyahu has long tried to curb his many detractors in the media.

Opposition lawmaker Zahava Galon said the move gives Netanyahu "unprecedented control over news broadcasts."

This content appears as provided to The Globe by the originating wire service. It has not been edited by Globe staff.

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