Standard General approached by WBD shareholders for TV unit sale: report

Prominent New York investor, Standard General, has been approached about acquiring all or part of Warner Bros Discovery’s cable television business, including CNN, reported Financial Times.

Soo Kim, founder of hedge fund Standard General, has held discussions about potentially buying or investing in WBD’s television networks, according to people familiar with the matter cited by the Financial Times report.

The outreach came from at least one major WBD shareholder.

Interest in WBD’s cable networks

The talks center on WBD’s traditional television assets, which include CNN, the Food Network, and the Discovery Channel.

These businesses are being separated as part of WBD’s broader restructuring, following the company’s agreement to sell its studio and streaming operations — including HBO — to Netflix in a deal valued at about $83 billion.

WBD has said the Netflix transaction values its shares at $27.75 each in cash and stock, and that the remaining cable networks could have additional standalone value of a few dollars per share.

A cash infusion from a private equity-backed investor could help stabilize the cable unit, which faces structural pressures as audiences continue to migrate away from traditional pay-TV.

On Wednesday, WBD said multiple potential buyers had expressed interest in its cable assets, though it declined to name them.

Any deal involving Kim or Standard General would mark a significant vote of confidence in a segment of the media industry many investors view as in long-term decline.

Deal possibility amid Paramount’s hostile takeover bid

The potential transaction comes at a sensitive moment for WBD.

The company recently urged shareholders to reject a $108 billion hostile takeover bid from Paramount, which has offered $30 per share in cash.

WBD’s board said the bid was too risky and lacked committed financing, a claim Paramount and its chief executive, David Ellison, have strongly denied.

Paramount has also challenged WBD’s assessment of the cable business’s value, arguing that the networks carry a heavy debt burden at a time when traditional television viewership is shrinking.

That debate has become central to shareholder deliberations as they weigh competing visions for the company’s future.

A deal with a private investor could complicate the takeover dynamics, potentially strengthening WBD’s case that its remaining assets have meaningful standalone value beyond the Netflix transaction.

Kim’s track record in distressed media deals

Kim is best known for his work in distressed and special-situations investing.

Over the years, he has taken stakes in troubled retailers such as RadioShack and American Apparel.

Standard General also has experience in broadcasting, having acquired Young Broadcasting out of bankruptcy in 2010 and later merging it with rivals before selling the combined Media General to Nexstar Broadcasting.

More recently, Standard General has expanded into gaming, completing the takeover of casino operator Bally’s.

Backed by financing from Apollo Global Management, the firm also pursued a nearly $9 billion acquisition of Tegna in 2022, though that deal was ultimately abandoned in 2023 after intense regulatory and political opposition.

Kim has also drawn attention for high-profile New York investments, including acquiring the management contract for the Ferry Point municipal golf course in the Bronx from Donald Trump in 2024.

Bally’s has since secured one of three licenses to build a New York City casino at the site.

Whether the discussions with WBD lead to a formal bid remains uncertain, but they underscore the strategic and financial crossroads facing one of the world’s largest media groups.

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