Found an opportunity! Trump: Whoever acquires Warner, CNN should be sold

U.S. President Trump has made it clear that regardless of which company ultimately acquires Warner Bros., the ownership structure of CNN must change. This statement places the future of this media giant, which is drawing widespread attention in Washington, under the spotlight and directly increases the political complexity of related merger transactions.

On Wednesday, Trump told reporters at the White House that the sale of CNN is "inevitable." He emphasized that whatever deal is reached, it should ensure that CNN is included or sold separately. Trump specifically pointed out that he does not believe the current management team of the company should be allowed to continue at the helm, indicating his clear expectations for a change in the management of the cable news network.

This position makes the bidding war for Warner Bros. even more complicated. Currently, Netflix has agreed to acquire its film studio and HBO Max streaming division for $72 billion in cash and stock after Warner's split, a proposal that does not include CNN.

Meanwhile, Paramount has made a hostile takeover bid of $77.9 billion, planning to acquire the entire company, including cable networks like CNN. Trump's intervention has put Netflix, which does not intend to enter the news business, in a more difficult position.

According to insiders, Trump has privately told allies multiple times that even if Netflix's acquisition proposal is approved, CNN must be sold or its leadership replaced. Paramount CEO David Ellison had previously promised Trump administration officials that if the acquisition is successful, CNN would undergo significant reforms.

So far, Warner, Netflix, and Paramount have not immediately responded to Trump's remarks.

The Bidding Game Between Two Giants

The market is witnessing a massive game surrounding the future of Warner Bros.

Netflix's acquisition logic lies in obtaining a coveted film library, a renowned studio, and streaming services, which will help it increase subscription users and revenue through price hikes. According to the agreement reached by Netflix, this $72 billion deal is to be conducted after Warner splits its business in two, with Netflix only acquiring the studio and streaming assets, excluding the cable network.

In contrast, Paramount has adopted a more aggressive strategy. The company has initiated a hostile takeover bid totaling $77.9 billion, aiming to swallow the entire Warner Bros., which means its acquisition target clearly includes traditional cable assets like CNN. The different acquisition structures determine CNN's different fates in future transactions and directly influence the White House's attitude toward these two proposals.

Real Challenges of the Transaction Structure

Trump's desire to see CNN change ownership may pose a substantial setback for Netflix.

It remains unclear how the sale of CNN would be executed if Netflix's transaction proposal moves forward, as the streaming giant's current offer does not include the cable network. Additionally, Netflix itself does not own any news media or cable networks and lacks the willingness to operate such assets This has triggered a structural dilemma: after Warner Bros. splits as planned, CNN is seen as the remaining part—namely, a key component of the new company that carries its cable television network assets. If CNN is spun off to meet the president's demands, it would directly break the original logic of the split and asset combination, significantly increasing the difficulty of executing the transaction.

Political Maneuvering and Management Pressure

According to a previous report by The Wall Street Journal, Paramount CEO David Ellison assured Trump administration officials during his visit to Washington last December that if he bought Warner, he would make "profound changes" to CNN.

Since Paramount's acquisition proposal itself includes CNN, this seems to give it more direct operational space in responding to the president's demands for changing the media landscape compared to Netflix.

Trump's dissatisfaction with CNN has a long history and a clear stance. On Wednesday, after a meeting with business executives at the White House, Trump publicly criticized a CNN reporter who asked when the government would release video footage of the September 2 incident involving a suspected drug trafficking vessel in the Caribbean.

Trump told the reporter, "You know you're working for the Democrats; you're basically a branch of the Democratic Party." This antagonistic sentiment further confirms his determination to demand a restructuring or sale of CNN.