Jake Tapper issued a major update involving CNN’s parent company, Warner Bros. Discovery, live on air Thursday, breaking the news that Paramount emerged victorious in its bid for the entertainment conglomerate.
“We have some breaking news in our national lead that affects everybody I’m looking at right now in the studio,” Tapper said on “The Lead” as a “Breaking News” banner flashed across the screen. “Moments ago, Netflix said it is declining to raise its offer for the purchase of Warner Bros. Studios and HBO, following the Warner Bros. Discovery board’s determination that Paramount — which is not just going for Warner Bros. Studios and HBO, but also the whole enchilada, including us here at CNN.”
He continued: “Paramount has submitted a ‘superior offer,’ according to Warner Bros. Discovery’s board. As I’ve noted, Warner Bros. Discovery is the parent company of CNN.”
While Tapper did not offer a direct opinion on the business update, he did ask CNN’s media analyst, Brian Stelter, to offer his take on the situation.
“[Netflix co-CEO] Ted Sarandos was at the White House for meetings today and I’m told he left the White House in a not very happy mood,” Stelter said. “But it is possible that Netflix has been given signals from the White House that the regulatory roadblocks were going to be too severe for the Netflix deal to go through.” Watch the full conversation below.
As we previously reported, WBD declared earlier in the day that Paramount’s latest offer of $31 per share was a “superior proposal,” prompting Netflix to decline to match its rival’s bid. Shortly after the news went public, Mark Thompson, the chairman and CEO of CNN Worldwide, asked staff not to jump to conclusions over the update.
“Despite all the speculation you’ve read during this process, I’d suggest that you don’t jump to conclusions about the future until we know more,” Thompson wrote in a memo to staff Thursday.
He continued: “And secondly let’s not forget our duty to our audience. We’re still near the start of what is already an incredibly newsy year at home and abroad, one that will culminate with critical U.S. midterm elections and who knows what else. Let’s continue to focus on delivering the best possible journalism to the millions of people who rely on us all around the world.”
Thompson assured staffers that next steps will be discussed in a town hall hosted by the news network, adding that WBD CEO David Zaslav is also holding a separate company-wide town hall this Friday to discuss the update.
Nonetheless, Paramount’s winning bid — which came after Paramount Skydance CEO David Ellison submitted a total of 10 bids, launched a hostile takeover bid directly to shareholders and a proxy fight with plans to replace WBD’s board at the company’s annual meeting — has prompted censorship concerns, given the Ellisons close ties to President Donald Trump.
Craig Aaron, co-CEO of the Free Press, even called the Paramount deal “even worse” than the Netflix one.
