Warner Bros. Discovery (WBD) clarified on Wednesday that CNN remains off the market, following reports of media entrepreneur Barry Diller's overture to acquire the network. Sources close to the matter confirmed that Diller initiated multiple discussions with WBD throughout the previous year, underscoring his continuing enthusiasm for CNN. This development comes amid a backdrop of interest from various wealthy investors targeting CNN, yet WBD has steadfastly retained the news channel within its portfolio.
The rationale for WBD's retention of CNN lies in its strategic and financial significance. CNN functions as a central pillar in WBD's lucrative carriage agreements, which also encompass broadcast channels such as TNT and Food Network. Currently, WBD is orchestrating a corporate split that will yield two independent publicly traded entities: Warner Bros., encompassing the movie studio and HBO, and Discovery Global, which will include CNN alongside other channels.
A spokesperson for WBD responded to the speculation by emphasizing, "CNN is an incredibly important part of the future of Discovery Global once it separates from Warner Bros. CNN was not and is not for sale." Their remark reflects the company’s commitment to retaining the network as a foundational asset in its forthcoming organizational structure.
Despite the company's firm stance, individuals familiar with the acquisition inquiries have noted that the media landscape remains attentive to CNN as a premier global news brand. One source involved in the discussions stated, "There's nothing new about people being interested in the premier global news network, but there's no good reason to sell CNN."
Diller's overt interest coincides with complex negotiations and debates on Wall Street centered on the valuation and future of Discovery Global after the division takes effect later this year. As part of the planned separation, Netflix has committed to purchasing Warner Bros. for $27.75 per share, leaving Discovery Global's shares to trade independently.
Complicating matters, Paramount has mounted a hostile bid for the entirety of WBD, valuing the package at $30 per share and including CNN and other media assets. However, the WBD board has rebuffed Paramount’s advance, asserting that the Netflix arrangement offers greater shareholder value by allowing investors to realize the potential of Discovery Global’s well-established brands and global footprint.
Paramount has contested this, arguing that Discovery Global would have little to no equity value as a standalone entity. WBD disagrees, suggesting Discovery Global’s equity could be worth as much as $6.86 per share in a buyout scenario.
Financial disclosures from WBD reveal that CNN is projected to generate $1.8 billion in revenue this fiscal year, with an anticipated profit of approximately $600 million. The Wall Street Journal did not detail any specific figure that Diller might have proposed in his approaches to acquire CNN. Yet, Diller's interest could amplify ongoing discussions regarding Discovery Global's valuation.
Barry Diller, age 83, chairs IAC, a prominent media holding company that owns several brands including People and The Daily Beast. Notably, his conversations last year did not reach the level of the WBD board of directors, according to participants familiar with the matter. Additionally, any sale of CNN could create disadvantageous tax implications for WBD, further diminishing the appeal of a transaction.
There are also potential political considerations in a change of CNN ownership. Diller has a history as a vocal critic of former President Donald Trump and is known as a significant donor to Democratic causes. This public profile contrasts sharply with Trump's opposition to CNN's management, as evidenced by his December remarks calling CNN's leadership a "disgrace" and asserting that the network should be sold. While those comments seemingly endorsed Paramount’s bid at that time, Trump later criticized Paramount as well.
A media industry source noted that a takeover attempt led by Diller would likely face insurmountable obstacles given the present political climate, stating, "everybody understands that M&A goes through the Oval Office right now." There was no response from Diller or IAC regarding these acquisition interests when contacted.
Last year, coinciding with the release of his memoir "Who Knew," Diller expressed optimism about CNN’s viability and future. Asked by host Fareed Zakaria if CNN would continue to exist as television evolves, Diller responded with confidence, emphasizing that CNN is "absolutely the only institutional news brand worldwide that I think actually has a future because it is video." He highlighted the need for CNN to establish a more defined digital presence alongside its video content.
In line with adapting to shifting consumer behaviors, CNN launched a streaming service called All Access late last year, targeting viewers who prefer subscription streaming and mobile news consumption. The network recently reported exceeding its subscription goals set for 2025 and starting strong in 2026, signaling growth and strategic shifts in response to market trends.