RedBird IMI CEO and former CNN Worldwide president Jeff Zucker is staying quiet on the drama surrounding the cable network ahead of Paramount’s ownership.
“I’m focused on this deal,” Zucker told TheWrap on Thursday following the closing of All3Media’s merger with Banijay’s TV production business. “I’m going to leave that deal to the others who are involved in it and working on it.”
However, he did acknowledge that the media business is undergoing a “time of tremendous change” and that “scale is key” to survive and thrive in the current landscape.
“That’s one of our competitive advantages here. We’ve got an enormous content library, strong balance sheet, broad international reach and diversified revenue streams and that’s what makes this new Banijay company so well positioned,” he continued. “The reality is you have to have scale in the new world and we made the decision that you just couldn’t get there through three or four smaller acquisitions. This media ecosystem is going to continue to evolve.”
When asked about Banijay Entertainment’s own M&A strategy going forward, Zucker said the company would remain “opportunistic.”
“We have excellent shareholders who will want us to make sure that we’re opportunistic and take advantage of any opportunities out there,” he said. “We’re not going to focus on anyone today, but we’ll be ready when it’s right.”
His comments come amid concerns that the Ellison family promised President Donald Trump an overhaul of CNN as part of their efforts to secure regulatory approval for Paramount’s $110 billion merger with Warner Bros. Discovery. The company has disputed the claim, telling TheWrap that “no commitments from either David or Larry Ellison have been made to any government body.”
Paramount has also confirmed that the merger will not close prior to July 22 as it awaits regulatory approval from the European Commission. The regulator has extended its Phase 1 investigation until that date after the David Ellison media giant submitted concessions to address concerns surrounding the deal’s impact to competition. The EC will either accept the remedies or refer the merger for a more in-depth Phase 2 investigation. It also has set a separate deadline of July 14 to review the deal’s foreign investment.
In addition, U.K. Secretary of Culture, Media and Sport Lisa Nandy informed Paramount and WBD that she’s “minded to intervene” over concerns that the deal would result in a “sufficient plurality” of views in news media and address the need for “sufficient plurality of persons with control of the media enterprises, or the enterprises providing on-demand [program] services or both, serving that audience.” The regulator will decide on whether it will clear the merger, seek remedies or launch a Phase 2 investigation by Aug. 7.
The deal, which is on track to close by the end of the third quarter, has already received approval from the U.S. Department of Justice and Warner Bros. shareholders.
Other countries where the deal has received clearance or where relevant waiting periods have expired include Australia, Austria, Brazil, Canada, China, Kuwait, Saudi Arabia, Serbia, South Africa, Ukraine, Montenegro, New Zealand, and North Macedonia. Foreign direct investment authorities in Spain, Germany, Slovenia, Belgium, Czechia, Italy, France and Romania have also signed off.
In addition to scruntiy by the EC and UK, a group of U.S. state attorneys general led by California are mulling possible litigation to block the deal. A spokesperson for California AG Rob Bonta, who has warned that “red flags are everywhere,” told TheWrap that its investigation of the deal remains “active” and that it has no other updates to share at this time.
Bonta has also downplayed reports that he would be interested in a divestiture of CNN, telling MS Now: “I don’t know where that comes from, to be honest. There’s been a lot of opining about what I’m thinking or what I’m saying or what I’ll do, and I have no idea where it comes from. I know a lot of people are interested in this transaction and what my office will do — and what we will do is what I’ve always said: We are investigating.”
Oregon AG Dan Rayfield is also separately seeking a court order that would delay the deal from closing for 60 days after it substantially complies with the state’s request for the media giant’s records.
Paramount has asked that Rayfield’s motion be denied due to a lack “clear and convincing proof of irreparable harm.” The company also noted that it has presented over 822,000 documents related to the state’s existing investigation, in addition to a further 1.2 million documents provided by WBD.
“The information the Oregon Department of Justice is seeking has nothing to do with whether this transaction complies with Oregon’s antitrust laws and is not a legitimate basis to delay a plainly lawful, pro-competitive transaction. We have provided the attorney general’s office with all relevant documents it requested for the merger,” a Paramount spokesperson shared in a prior statement. “We will vigorously defend against such efforts in court.”
In the event the transaction does not close by Sept. 30, WBD shareholders will receive a 25 cent per share “ticking fee” for each quarter until closing. In the event that the deal does not close at all due to regulatory matters, Paramount will pay WBD a $7 billion termination fee.
