Trump signals he'll oppose Warner Bros. deal unless CNN is included

By Jennifer A Dlouhy

 

President Donald Trump signalled he’ll oppose a Warner Bros. Discovery Inc. deal that doesn’t include new ownership of CNN, a potential wrinkle for the bid from Netflix Inc. 

“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. 

Netflix has agreed to buy the Warner Bros. TV and film studios and its HBO business in a deal valued at $27.75 a share. Warner Bros. plans to spin off its cable channels, including CNN, before it closes the Netflix transaction. The spinoff is scheduled for the third quarter of next year, with Warner Bros. Chief Financial Officer Gunnar Wiedenfels named to lead the business.

 

Paramount is trying to buy all of Warner Bros., including cable networks like CNN, for $30 a share.

 

Hollywood and Washington have been closely monitoring the president’s comments on the possible deals. Paramount Skydance Chief Executive Officer David Ellison’s father, software billionaire Larry Ellison, is a Trump supporter.

 

The Wall Street Journal reported David Ellison promised Trump sweeping changes at CNN, which has long drawn complaints from the president, if he took control of the network’s parent company. Trump’s son-in-law, Jared Kushner, has also been involved in setting up financing for Ellison’s competing offer.

 

Ellison sent a letter on Wednesday to Warner Bros. investors arguing that his proposal offers better value and a higher chance of passing regulatory scrutiny. He urged them to support his tender offer for the shares.

 

Trump has also met with Netflix co-Chief Executive Officer Ted Sarandos about the deal and hasn’t publicly weighed in to favor either offer. Trump sidestepped a question about Kushner’s involvement on Wednesday, but indicated he could eventually weigh in on a regulatory review.

 

“I will be probably involved, maybe involved in the decision. It depends,” Trump said. “You have some good companies bidding on it.”