Rumors of an impending sale of CNN to its onetime CEO have sparked concerns regarding potential foreign influence on the network. Industry insider Ivan Schlager of Kirkland & Ellis has warned that a significant portion of the funds for the sale could originate from the United Arab Emirates (UAE), raising questions about the implications of such a transaction.
Former CNN boss Jeff Zucker, who has business ties to Abu Dhabi-based International Media Investments, is reportedly a frontrunner to acquire the struggling news station from current owner David Zaslav. Schlager cautions that if Zucker’s funds indeed come from the UAE, it could introduce foreign influence into the network’s operations, similar to how Al Jazeera operates under the Qatari government’s funding.
Schlager emphasizes the need for congressional scrutiny and a potential review by the Committee on Foreign Investment (CFIUS) to assess the sale’s implications if the UAE’s investment exceeds 25 percent of the total. He points out the ongoing delay in the Forbes sale to an Indian investment firm due to similar political concerns, indicating the significance of addressing potential foreign backing in media acquisitions.
The concerns arise in the context of Zucker’s joint venture with International Media Investments, forming RedBird IMI, a private equity firm that has pledged substantial funds for media and sports investments. With Zucker’s return to the spotlight following Chris Licht’s departure as CNN’s head, speculations suggest he aims to capitalize on the 2024 presidential election.
Amidst the developments, Warner Bros. Discovery CEO David Zaslav’s plans remain uncertain, with possibilities ranging from staying in his current position to exploring a potential merger between CNN and CBS News, depending on the outcome of NBCUniversal parent Comcast’s ongoing merger negotiations with Paramount.
As the rumors circulate, CNN faces ongoing challenges, including declining profits and controversial incidents. The potential sale adds to the network’s turbulent year, marked by a disastrous town hall with former President Donald Trump and the departure of longtime anchor Don Lemon following contentious incidents.
Written by:
Dana Sterlin-Editor
