Paramount Skydance is eyeing Warner Bros. Discovery (WBD), and insiders say this could be a game changer. The bidding for WBD started recently, with Paramount Skydance, Comcast, and Netflix all throwing their hats in the ring. However, CNN’s role in the deal sets Paramount apart from the rest.
Interestingly, Larry and David Ellison, who lead Paramount Skydance, seem the only ones interested in CNN as part of the acquisition. They believe that, despite its challenges, CNN can be a profitable asset. In fact, it still pulls in around $500 million annually. The Ellisons think CNN’s global reach and presence in hotels and airports make it a solid investment.
Former President Trump has his own agenda. He wants CNN’s critical coverage of him to be toned down. Many insiders believe the Ellisons could be the ones to make that happen, as they plan to apply a similar approach to CNN as they did with CBS by hiring more moderate voices.
Experts note that if the Ellisons win, they might face less scrutiny during the regulatory approval process. A telecom lawyer pointed out that while Comcast and Netflix could undergo lengthy reviews, they believe the Ellisons could secure a speedy approval.
For WBD’s CEO, David Zaslav, a bidding war is essential. He’s aiming for a deal valued at $30 a share, or about $70 billion. However, the landscape looks tricky. Comcast and Netflix aren’t interested in acquiring the entire company, which could affect WBD’s valuation due to potential taxes from selling parts of it off.
Moreover, Comcast faces regulatory challenges because of its political baggage and must spin off its MSNBC channel to ease antitrust concerns. Similarly, Netflix’s leadership’s progressive stances might complicate its bid.
While many investors are skeptical about meeting Zaslav’s expectations, insiders in the industry believe the Ellisons are set to make a competitive offer without the political baggage that others carry. The outcome of this bidding war could reshape the media landscape significantly.
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