President Donald Trump indicated he would block a Warner Bros. Discovery Inc. Acquisition unless it involved new leadership for CNN, posing a possible obstacle for the offer from Netflix Inc.
TL;DR
- President Trump stated he would block Warner Bros. Discovery Inc. acquisition unless CNN had new leadership.
- Trump believes current CNN management is dishonest and should not continue operating the network.
- Warner Bros. intends to divest CNN before finalizing a sale to Netflix or Paramount Skydance.
- David Ellison pledged overhauls at CNN if Paramount Skydance acquires the media conglomerate.
“I think any deal should — it should be guaranteed and certain that CNN is part of it or sold separately,” Trump said during a meeting with business leaders Wednesday at the White House.
“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 think CNN should be sold along with everything else.”
Trump said his primary concern is that the current management of the network may be rewarded by being allowed to continue operating “with money” from a sale. Warner Bros. Is the target of competing offers from Netflix and Paramount Skydance Corp.Play Video
Netflix has reached an agreement to acquire the Warner Bros. Television and film production facilities along with its HBO operations, for a total valuation of $27.75 per share. Prior to finalizing the acquisition by Netflix, Warner Bros. Intends to divest its cable television networks, such as CNN. This separation is slated for the third quarter of the upcoming year, and Warner Bros.' Chief Financial Officer, Gunnar Wiedenfels, has been designated to head the newly independent entity.
Paramount is trying to buy all of Warner Bros., including cable networks like CNN, for $30 a share.
The president's remarks regarding potential agreements have been under close observation by Both Hollywood and Washington. David Ellison, the CEO of Paramount Skydance, has a father, Larry Ellison, who is a software magnate and a supporter of Trump.
The Wall Street Journal indicated David Ellison pledged significant overhauls at CNN, a network that has frequently drawn grievances from the president, should he acquire the media conglomerate. Trump's son-in-law, Jared Kushner, has also participated in arranging funding for Ellison's rival proposal.
Ellison dispatched a letter on Wednesday to Warner Bros. Shareholders, contending that his proposition delivers superior worth and a greater likelihood of clearing regulatory examination. He implored them to endorse his tender bid for the stock.
The former President has also conferred with Netflix co-CEO Ted Sarandos regarding the transaction and has not voiced support for either proposal publicly. On Wednesday, Trump avoided a query concerning Kushner's participation, yet suggested he might ultimately comment on a regulatory examination.
“I will be probably involved, maybe involved in the decision. It depends,” Trump said. “You have some good companies bidding on it.”
