For Donald Trump, the Warner megadeal talks are all about CNN

The fate of Warner Bros.

- Brian Schwartz & Alex Leary

The future of CNN, in Trump's bad books, could be decisive in the deal's outcome.

(BLOOMBERG)

Discovery could hinge on a frequent subject of President Trump's ire: CNN.President Trump told reporters at the White House on Wednesday that the ownership of CNN should change regardless of which company buys Warner and that it is “imperative that CNN be sold.”

Behind the scenes in recent days, Trump has repeatedly told allies that CNN should either be sold or get new leadership, according to people familiar with the matter, even if Netflix’s proposal is approved. The president has been unwavering in meetings with allies about his position on CNN and he has connected its future to deal negotiations with Warner Bros., the people said.

For Trump, the deal represents a second chance to take aim at CNN. During his first term, the Justice Department unsuccessfully tried to block a sale of CNN's parent company, then known as Time Warner, to AT&T unless the network was spun off.

The president's intervention in corporate dealmaking raises fresh questions about how a transaction might proceed.

Warner Bros. last week agreed to sell just its studios and HBO Max streaming business—but not the television networks group that includes CNN—to Netflix for $72 billion in cash and stock.

If Netflix’s acquisition succeeds, Warner Bros. Discovery would continue with its plans to spin off CNN and its other cable networks into a stand alone, publicly traded company called Discovery Global. Despite declining ratings, Warner executives consider CNN a vital part of Discovery Global.