U.S. President Donald Trump hinted that he would oppose any Warner Bros. Discovery deal that does not involve a change in CNN’s ownership, signaling potential complications for Netflix’s acquisition plans.
During a meeting with business leaders at the White House on Wednesday, Trump stated, "I believe any deal should ensure that CNN is part of the transaction or sold separately."
"I don’t think the people currently running that company and CNN should remain in charge—they are a very dishonest group. CNN should be sold along with all other businesses," he added.
Trump expressed concern that CNN’s current management might benefit financially from the sale and continue operating. Currently, Netflix and Paramount Skydance are competing to acquire Warner Bros.
Netflix has agreed to purchase Warner Bros.’ TV and film studios, including HBO, at a valuation of $27.75 per share. Warner Bros. plans to spin off its cable channels, including CNN, before finalizing the deal with Netflix. The spin-off is expected in Q3 next year, overseen by Warner Bros. CFO Gunnar Wiedenfels.
Meanwhile, Paramount is attempting a full acquisition of Warner Bros. at $30 per share, including CNN and other cable networks.
Hollywood and Washington have closely monitored Trump’s remarks on the potential deal. David Ellison, CEO of Paramount Skydance, is the son of Larry Ellison, a Trump supporter.
Reports suggest David Ellison assured Trump of a major overhaul at CNN—long criticized by Trump—if he gains control of its parent company. Trump’s son-in-law, Jared Kushner, is also involved in financing Ellison’s bid.
In a letter to Warner Bros. investors on Wednesday, Ellison argued his offer is more valuable and likely to pass regulatory scrutiny, urging shareholders to support his stock tender.
Trump also met with Netflix co-CEO Ted Sarandos but has not publicly endorsed either bidder. On Wednesday, he sidestepped questions about Kushner’s involvement but hinted he might eventually consider regulatory assessments.
"I may get involved, maybe in the decision-making. It depends," Trump said. "There are some good companies bidding."