Trump eyes chance to make CNN serve his agenda. Netflix stands in the way

Trump has declared he 'would be involved' in deciding whether Netflix's proposed acquisition should move forward and the White House is signalling openness to a Paramount-Skydance victory

The battle over control of Warner Bros Discovery (WBD) has turned CNN into a bargaining chip, with US President Donald Trump emerging as an unlikely power centre in a deal that could reshape the network he has for long been extremely critical about. Paramount’s surprise $108 billion hostile takeover bid on December 8 has reopened the contest with Netflix, after the streamer’s $83 billion offer last week briefly appeared to settle the matter.

 

Netflix’s proposal, already cleared by WBD's board, would carve out CNN and other cable networks into a new company, thus insulating the newsroom from direct political influence. But for many inside CNN, the relief was short-lived, reported the Financial Times.

 

 

How has Trump become a factor in the Warner Bros takeover fight?

 

Trump has inserted himself into the negotiations, declaring he would be "involved” in deciding whether Netflix’s proposed acquisition should move forward. He praised Netflix chief Ted Sarandos as “fantastic", but the White House is signalling openness to a Paramount-Skydance victory, the Financial Times reported citing people familiar with the talks.

 

That outcome would place the 24-hour news network under the influence of Skydance founder Larry Ellison, a Trump supporter, and his son David Ellison, who runs Paramount. The studio, which also owns CBS News, recently installed Free Press founder Bari Weiss - a critic of what she calls “woke culture" - as its editor-in-chief, triggering concerns internally about potential political shifts.

 

Trump, who has repeatedly accused CNN of spreading "fake news" against him, escalated his attacks last weekend, calling anchor Kaitlan Collins “stupid” and “nasty". Against this backdrop, David Ellison travelled to Washington to meet Trump administration officials, discussing his commitment to making CNN’s news operations “more balanced” should his bid succeed, reported the Financial Times. People briefed on the meetings say Ellison made no firm promises. Those involved in the negotiations describe CNN as a "strategic asset" for Paramount, one the group believes could help win Trump’s support for its takeover attempt, the report said.

 

How are CNN valuations splitting the bidders?

 

The deal now hinges on a stark disagreement over the value of Warner Bros Discovery's legacy cable networks, including CNN, TNT, Discovery and the Food Network. Netflix, which does not want to own any cable channels, supports a spin-off that would hand WBD investors shares in a new publicly traded company called Discovery Global. WBD Chief Financial Officer Gunnar Wiedenfels is expected to lead it. But Netflix’s valuation assumes the cable networks are worth significantly more than Paramount claims, according to a Business Insider report.

 

David Ellison argues the spin-off is worth about $1 per WBD share, or roughly $2.5 billion. But independent analysts estimate closer to $4 per share, around $10 billion, according to the Business Insider report. The gap matters because Netflix must convince investors that the assets they receive in the spin-out have meaningful value, while Paramount wants them to appear diminished.

 

The numbers highlight the uncertainty. Bloomberg Intelligence estimated CNN alone was worth $5 billion in 2023. A forensic accountant in a court case this year pegged CNN’s 2023 value at $2.3 billion, the report said. Ellison’s estimate implies CNN plus a global suite of entertainment, sports and news channels together equal $2.5 billion. Analysts quoted by Business Insider say that reflects the steep decline of the cable business, but debate continues over how far valuations have fallen.

 

What happens to CNN and WBD’s cable assets under each deal?

 

If Netflix’s deal proceeds, CNN would be spun off with other cable networks into Discovery Global, avoiding the political complications of a Paramount takeover, the Financial Times reports. The network would then need to chart its own future as audiences shift sharply away from cable to digital alternatives. Under chief executive Mark Thompson, CNN has attempted to reposition itself in a fragmented news environment.

 

Inside the company, concerns also persist over job cuts and potential editorial changes if Paramount prevails, the newspaper said. While people close to the Ellisons insist Paramount will operate independently and note Trump recently criticised CBS over a 60 Minutes interview, the political overtones of the bid continue to shape the fight.

 

For now, Netflix remains in the lead. But with Trump openly weighing in and Paramount pressing its case in Washington, CNN’s fate sits at the centre of one of the most high-stakes media battles in years.