Trump threatens to block Warner Bros. deal without CNN
President Donald Trump indicated he will oppose a Warner Bros. The Discovery Inc. deal does not encompass new ownership of CNN, presenting a potential complication for Netflix Inc.’s bid. “I think any deal should — it should be guaranteed and certain that CNN is part of it or sold separately,” Trump stated. “I don’t think the people that are running that company right now and running CNN, which is a very dishonest group of people, I don’t think that should be allowed to continue,” he added. “I believe CNN should be sold along with everything else.” Trump expressed that his main worry is that the existing management of the network might benefit by being permitted to keep operating “with money” from a sale. Warner Bros. finds itself at the center of competing offers from Netflix and Paramount Skydance Corp.
Netflix has reached an agreement to acquire Warner Bros. TV and film studios and its HBO business in a transaction valued at $27.75 per share. Warner Bros. intends to separate its cable channels, CNN included, prior to finalizing the Netflix deal. The spinoff is set to debut in the third quarter of next year, with Warner Bros. at the helm. Gunnar Wiedenfels has been appointed to lead the business. Hollywood and Washington have been attentively observing the president’s remarks regarding the potential agreements. David Ellison, Chief Executive Officer of Paramount Skydance, is the son of software billionaire Larry Ellison, who supports Trump. Reports says that David Ellison assured Trump of significant changes at CNN, a network that has consistently faced criticism from the president, should he assume control of the network’s parent company.
Jared Kushner has been engaged in arranging financing for Ellison’s rival proposal. On Wednesday, Ellison addressed Warner Bros. investors in a letter, asserting that his proposal provides superior value and a greater likelihood of overcoming regulatory scrutiny. He called on them to back his tender offer for the shares. Trump has engaged in discussions with Netflix co-Chief Executive Officer Ted Sarandos regarding the deal and has not publicly expressed a preference for either offer.
Trump avoided addressing a question regarding Kushner’s involvement on Wednesday, yet suggested that he might eventually provide input on a regulatory review. “I will be probably involved, maybe involved in the decision. It depends,” Trump said. “You have some reputable companies bidding on it.”
