President Trump on Wednesday weighed in on the ongoing sale of Warner Bros. Discovery, saying CNN — one of WBD’s cable networks — should be sold as part of any transaction.
While Trump cannot unilaterally block mergers unless there are national security concerns over foreign investment, his remarks could influence WBD shareholders and the board. WBD’s board has 10 days to respond to a hostile $108 billion takeover bid from Paramount, which was launched after WBD announced a deal to sell its studio and streaming businesses to Netflix for $83 billion. WBD has argued its Netflix deal is financially superior, but rejecting Paramount could trigger shareholder lawsuits. Paramount contends its offer is more likely to pass regulatory approval, while also providing a higher financial return.
Trump said in a press briefing that he may be “involved” in the decision and insisted that CNN be sold along with WBD’s other assets. He criticized CNN’s current management as “corrupt or incompetent” and said the network should not remain under the same ownership. His comments could shape shareholder perceptions that Netflix’s offer faces regulatory challenges because it excludes the cable networks, including CNN.
Both Paramount and Netflix have actively lobbied Trump and his administration, while WBD maintains confidence its Netflix deal will be approved. Paramount’s foreign investors, including Saudi Arabia’s Public Investment Fund, Abu Dhabi’s L’imad Holding Company, the Qatar Investment Authority, and Jared Kushner’s Affinity Partners, are collectively contributing at least $24 billion and have agreed to forgo board seats and voting rights to avoid triggering additional regulatory scrutiny.