New York hedge fund approached by Warner shareholder to buy CNN
Standard General’s Soo Kim is considering purchasing or investing in WBD’s television networks
A prominent New York investor has been approached by at least one major Warner Bros Discovery shareholder to acquire all or part of its cable television assets including CNN, said people briefed on the matter.
Soo Kim, founder of New York hedge fund Standard General, has been in talks over potentially buying or investing in the WBD television networks, said the people.
A veteran of distressed debt deals, Kim took stakes in troubled companies including RadioShack and American Apparel. Standard General has recently entered gaming through its takeover of the listed Bally’s casino chain and has done previous television network deals.
A cash infusion could boost the prospects of WBD’s cable assets, which are being spun off as part of the $83bn sale of the group’s studio and streaming assets to Netflix. The shareholder who approached Kim could not be immediately identified.
The potential transaction comes after WBD urged its shareholders on Wednesday to reject Paramount’s $108bn hostile offer to buy all of the media conglomerate.
Paramount has offered $30 a share in cash to WBD shareholders. However, WBD’s board said the Paramount bid was too risky and lacked secure funding. Paramount, which is led by chief executive David Ellison, has vigorously denied the claim.
The Netflix deal, which includes taking over HBO, is worth $27.75 a share in cash and stock. WBD has said its remaining television networks business could have an additional standalone value of a few dollars a share.
Paramount has disputed that valuation, noting that the cable business has a heavy debt load at a time when traditional TV viewership is shrinking.
A private equity backer like Kim could provide a vote of confidence and an infusion of capital for the cable business, which includes CNN, the Food Network and Discovery Channel.
WBD on Wednesday said a number of potential buyers had expressed interest in its traditional TV assets, without giving the names of the interested parties.
Standard General has previous experience in television news. In 2010, it acquired a local network group, Young Broadcasting, out of bankruptcy.
It later combined Young Broadcasting with rival groups, eventually selling the roll-up known as Media General to Nexstar Broadcasting.
Backed with financing from US private equity group Apollo, Standard General in 2022 announced a near $9bn deal to buy Tegna, a local television group with scores of TV stations. After fierce political and regulatory opposition, the deal was terminated in 2023.
Kim, 50, had acquired the management contract for the Ferry Point municipal golf course in the Bronx, New York, from Donald Trump in 2024, paying tens of millions of dollars to the Trump Organization.
Bally’s this week was officially granted one of three licences for a New York City casino, which it intends to build at the Ferry Point site.
Kim declined to comment. WBD did not respond to a request for comment.