Billionaire Barry Diller, known for his involvement in tech and media, reportedly showed interest last year in purchasing CNN from Warner Bros. Discovery as the conglomerate planned to restructure. However, discussions never moved beyond initial inquiries.
This interest is said to be personal and distinct from Diller’s role at IAC, his media and internet company. According to reports, the proposal to buy CNN was never taken seriously and didn’t reach the company’s board.
Warner Bros. Discovery confirmed that CNN is not for sale. Diller’s team declined to comment on the matter.
Last month, Netflix announced plans to merge with Warner Bros. Discovery’s studio and streaming segments in a deal worth $72 billion. WBD is also looking to spin off Discovery Global, which includes CNN, as an independent publicly traded entity.
WBD executives expressed that a sale of CNN would be impractical and financially burdensome due to its significance as a core asset in the upcoming spinoff, particularly in terms of distribution agreements.
A WBD representative emphasized that CNN is crucial to Discovery Global’s future post-separation, noting interest in the network isn’t new, but it has never been up for sale.
IAC, which recently rebranded Dotdash Meredith to People Inc., is among the major digital publishers in the U.S., with well-known brands like People and Investopedia. It also owns The Daily Beast.
Diller has been open about his personal life, sharing insights into his past relationships. He married fashion designer Diane von Furstenberg in 2001, after a long courtship, describing their relationship as profound and lasting.
Before Diller’s inquiries, WBD had already planned a company breakup to facilitate its merger with Netflix, aiming to separate its rapidly growing studio and streaming segments from the more stagnant cable network.
The proposed structure involves spinning off the cable assets into a new publicly traded company, followed by selling the remaining assets to Netflix. Warner Bros. is also on the block, intended to be sold along with its flagship HBO and HBO Max platforms.
Netflix is set to acquire these assets in a cash transaction, gaining access to a vast array of valuable content.
The cable networks, including CNN, TNT, TBS, and the Discovery Channel, will form a separate entity called Discovery Global, which will retain a significant share of the company’s traditional cable operations and associated debt.
WBD believes this split will provide clearer valuation opportunities for investors by distinguishing fast-growing streaming assets from traditional cable networks, which are facing ongoing pressure.
However, critics, such as competitor Paramount Skydance, have derided the plan as overly complicated and potentially harmful to value, suggesting that the newly spun-off cable company would struggle with debt and limited growth prospects.
