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Zucker Stays Silent on CNN Sale Drama
10 Jul
Summary
- Jeff Zucker is focused on a specific deal, leaving CNN sale to others.
- He emphasized the need for scale in the evolving media industry.
- Paramount's merger faces July 22 deadline for European Commission review.
Jeff Zucker, CEO of RedBird IMI and former CNN Worldwide president, has declined to comment on the unfolding situation involving CNN's potential sale as part of Paramount's merger with Warner Bros. Discovery.
Zucker stated his current focus is on a different deal, expressing that he will "leave that deal to the others who are involved in it." He did, however, emphasize the critical importance of scale in the current media landscape, citing Banijay's strong position due to its content library and financial stability.
His comments surface as reports suggest the Ellison family may have promised U.S. President Donald Trump an overhaul of CNN to secure regulatory approval for the $110 billion Paramount-Warner Bros. Discovery merger. Both Paramount and the Ellison family have disputed these claims.
The merger faces a July 22 deadline for regulatory review by the European Commission, which may extend its investigation. Additionally, the U.K. Secretary of Culture is "minded to intervene" over concerns regarding media plurality, with a decision expected by August 7.
Despite these hurdles, the deal has received approval from the U.S. Department of Justice and Warner Bros. shareholders, along with clearances from numerous other countries. However, U.S. state attorneys general, led by California, are still considering potential litigation, and Oregon's Attorney General is seeking to delay the deal's closing.
If the transaction does not close by September 30, Warner Bros. Discovery shareholders will receive a quarterly "ticking fee." Should the deal fail due to regulatory issues, Paramount would owe Warner Bros. Discovery a $7 billion termination fee.
