Media insiders dispute claims about CNN’s divestiture, while retail investors debate CNN’s strategic value under David Ellison.
- Retail investors are watching Paramount as speculation over a potential CNN sale adds uncertainty to its proposed $110 billion merger with Warner Bros.
- The rumors stemmed from Makan Delrahim’s comments that Paramount may consider options to resolve California’s antitrust concerns.
- Media insiders Brian Stelter and Dylan Byers disputed reports that CNN is for sale.
Paramount Skydance (PSKY) and Warner Bros. Discovery (WBD) face fresh merger uncertainty as speculation about the CNN sale collides with conflicting reports from media insiders. While regulatory pressure fuels talk of potential asset divestitures, retail investors remain bullish on Paramount’s strategy.
Paramount Skydance’s CNN Question Adds Twist To Warner Bros. Deal
Retail investors are closely watching Paramount as a theory over a possible CNN divestiture adds another layer of uncertainty to its proposed combination with Warner Bros.
The discussion follows reports citing comments from Paramount Chief Legal Officer Makan Delrahim about the company’s willingness to consider various options amid an antitrust challenge led by California.
Delrahim had said Paramount could consider a range of measures in an effort to resolve the legal dispute surrounding its planned acquisition of WBD. That comment quickly fueled headlines suggesting CNN could be sold as part of a settlement strategy. Paramount and WBD agreed to a transaction valued at roughly $110 billion, but regulatory opposition continues to create uncertainty around the deal.
Paramount Skydance stock inched 0.4% higher overnight, ahead of Friday.
Media Insiders Push Back On PSKY’s CNN Sale Rumor
The CNN-sale narrative soon faced resistance from media insiders, including Brian Stelter and Dylan Byers. Stelter, who is a chief media analyst at CNN, posted on X saying, “There is “zero truth” to the notion that Paramount CEO David Ellison is prepared to sell CNN in connection with the WBD transaction, a Paramount source told me this morning, amid a flurry of misleading headlines about the matter. “CNN is key to Ellison,” the Paramount source added, citing the comments in his recent NYT op-ed.
Byers, who is a founding partner at Puck, also took to X, “Paramount sources are adamant that CNN is *not* on the table in negotiations with Democratic AGs, despite a headline from Reuters.”
On Wednesday, reports said Paramount Skydance CEO David Ellison is considering moving the company out of California if Attorney General Rob Bonta refuses for a settlement in the deal. However, Bonta has rejected the strategy, calling it an attempt to pressure California into approving a transaction the state considers unlawful.
What PSKY Retail Traders Are Saying
On Stocktwits, retail sentiment around the stock turned to ‘bullish’ from ‘neutral’ tererritory the previous day.
A user said, “Wow, i had no idea that cnn numbers were that abysmal…THAT is eye opening. But it generates $600M in Ebitda per year and that is on what looks like its last leg. Lots of upset if they return Ted Turners vision.”
Another user said, “Under David Ellison CNN can be rescued and restored to Greatness again over time. That is some of the value David sees here w/ WBD. Too many here willing to throw the baby out w/ the bath water. Its just poor management that can be corrected.”
A third user quipped, “I think the whole sell CNN and move outta Cali is a good ploy on Ellison’s part. He’s putting forth the story “hey I’m trying to work with you people but if you keep on I’ll pull the nuclear option” It doesn’t mean he’ll actually do any of it.”
PSKY stock has cratered 25% year-to-date, while WBD stock has dropped over 3%.
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