Soo Kim, founder of New York hedge fund Standard General, has held discussions about acquiring or investing in Warner Bros. Discovery’s cable television assets — a package that would include CNN, Food Network and Discovery Channel — after being approached by at least one large WBD shareholder, according to reporting based on people familiar with the matter.[1]
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Deal context and strategic background
The discussions come amid a high‑stakes restructuring of Warner Bros. Discovery (WBD) following competing bids and separate transactions: Netflix agreed to buy WBD’s studio and streaming assets, including HBO, at $27.75 per share, while Paramount Skydance launched a hostile $108 billion bid that WBD’s board has publicly rebutted as lacking “secure financing.”[1]
According to the reporting, a major WBD shareholder approached Standard General to explore whether Soo Kim’s firm could take all or part of the cable networks business — a move that would separate the linear cable franchises (CNN, Food Network, Discovery Channel, TNT, etc.) from the streaming and studio businesses and could enable different buyers to pursue distinct commercial strategies for each asset set.[1]
Why Standard General is a logical suitor
- Track record in complex, distressed media deals: Standard General previously acquired Young Broadcasting out of bankruptcy in 2010 and later participated in deals that culminated in the sale to Nexstar, demonstrating experience turning around local broadcast assets and executing carve‑out transactions.[1]
- Specialist in contested and structured transactions: Soo Kim’s firm is known for opportunistic investments in distressed or operationally complex businesses (examples cited historically include RadioShack and American Apparel), a profile that aligns with a potential cable carve‑out requiring operational restructuring and balance sheet overlay management.[1]
Financial and strategic implications for WBD and stakeholders
If Standard General or another financial buyer takes the cable networks, several implications follow:
- Valuation and financing structure: A private finance buyer could structure the purchase with significant leverage and operational targets, differing materially from strategic bidders (e.g., Paramount) focused on scale and content integration.[1]
- Regulatory and political sensitivity around CNN: CNN’s inclusion raises political and regulatory sensitivities that can influence buyer selection, public scrutiny and potential conditions tied to preserving editorial independence or divestiture terms.[1]
- Likelihood of carve‑up outcome: The situation increases the probability of a multi‑party solution in which streaming/studio assets and linear cable networks are sold separately to buyers best suited to those business models, consistent with the Netflix and hostile Paramount dynamics already in play.[1]
Precedents and comparable transactions
Comparable precedents include local broadcaster restructurings and cable/network carve‑outs where specialized financial sponsors bought linear assets and either consolidated them, retooled distribution economics, or positioned them for later sales to strategic buyers. Standard General’s Young Broadcasting transaction is the most frequently cited precedent for the firm’s media playbook.[1]
Market reaction and next steps
At the time of reporting, Reuters and other outlets noted the story and indicated that neither Standard General nor WBD had immediately commented outside business hours, and Reuters could not independently verify the FT’s account.[1]
Key near‑term variables to watch:
- Whether Standard General formally files interest or financing plans and the structure (minority investment vs. outright purchase).[1]
- WBD board decisions and any shareholder proposals that prioritize a carve‑up or single‑buyer outcome in response to competing offers from Netflix and Paramount Skydance.[1]
- Regulatory scrutiny and potential political commentary, particularly related to ownership of a major news network like CNN.[1]
Keywords and strategic SEO phrases embedded for executive search intent
This analysis references relevant long‑tail search terms executives and deal advisors commonly seek when monitoring transaction dynamics: Warner Bros Discovery cable asset sale, private equity carve‑out CNN acquisition, Standard General Soo Kim media deals, and cross‑border M&A cable networks 2025.
Reporting note
The core account of these discussions derives from Financial Times reporting relayed via Reuters; the situation remains fluid and was not independently confirmed by the parties at the time of those reports.[1]
Sources
https://wzuu.com/2025/12/18/standard-general-in-talks-to-invest-in-warner-bros-discovery-networks-ft-says/, https://www.mk.co.kr/en/world/11496359, https://www.gurufocus.com/news/4077507/warner-bros-discovery-wbd-attracts-interest-for-cable-tv-assets
