A hedge fund founded by Korean-American Soo Kim, Standard General, is reportedly in discussions to acquire or invest in Warner Bros.’ TV network assets, including CNN, as reported by the Financial Times on the 18th (local time). The shareholder who contacted Soo Kim has not been identified. Soo Kim, known for his expertise in distressed debt, has previously led acquisitions of struggling companies such as RadioShack and American Apparel, and has experience in the media industry, having acquired and expanded the bankrupt local broadcaster Young Broadcasting in 2010 before selling it.
The move to sell CNN separately seems to align with the deal Warner Bros. is pursuing with Netflix, excluding CNN. Warner Bros.’ board is expected to advise shareholders to reject Paramount’s acquisition proposal and support the acquisition agreement with Netflix. Netflix has already agreed to acquire Warner Bros. Studio and HBO Max streaming services for $72 billion, or $27.75 per share. In contrast, Paramount has proposed a hostile takeover, offering $108 billion, or $30 per share, to acquire the entirety of Warner Bros., including CNN.
Paramount argues that Warner Bros.’ TV networks carry significant debt, suggesting that if sold to Paramount, the TV networks would be valued at $0.25 per share. Meanwhile, a separate sale of the TV network might yield several dollars per share in added value. Additionally, Warner Bros. has indicated interest from multiple potential buyers for their TV networks.
President Trump, who holds the authority to approve Warner Bros.’ corporate merger, insists that regardless of whether Netflix or Paramount acquires Warner Bros., CNN should be sold separately, and its current management should be changed.