'Korean Tycoon' Soo Kim Joins Warner Bros Acquisition Battle... "Will CNN Change Owners?"

A Korean-American heavyweight has emerged in the 'deal of the century' surrounding global media giant Warner Bros Discovery (WBD). Soo Kim, the head of New York hedge fund Standard General, is confirmed to be exploring the acquisition of Warner Bros' cable broadcasting assets, including CNN.

According to the Financial Times (FT) and Wall Street sources on the 20th (local time), major shareholders of Warner Bros recently contacted Soo Kim to discuss the sale of all or part of cable broadcasting assets, including news channels CNN, TNT, and Discovery.

◆ A Gambler Who Seized the Opportunity in the 'Netflix Deal'

Currently, Warner Bros is in turmoil. Earlier this month, it signed a contract to sell its film and TV studio and streaming service (HBO Max) to Netflix for $72 billion (approximately 106 trillion won), but the 'cable channel (Linear TV)' sector, classified as a declining industry, was excluded from the sale and was facing a spin-off. FT analyzed, "Soo Kim has seized this gap and has been offered an investment in the cable assets that Warner Bros is considering disposing of."

Soo Kim is a prominent figure from Wall Street, owning the Bally's casino chain and having a deep history in the media industry through past acquisitions and mergers, including local broadcaster Media General. In 2022, he attempted to acquire media group 'Tegna' for $8.6 billion, but it fell through due to regulatory opposition, leading to speculation that he aims to revive his dream of a media empire through this deal.

◆ Could He Be the Problem Solver for 'Trump Risk'?

Another reason the industry is paying attention to Soo Kim is his connection to Donald Trump, the President of the United States. Trump criticized CNN's management as a "dishonest group" on the 10th and mentioned the need for a sale. Coincidentally, Soo Kim acquired the operating rights to the municipal golf course 'Perry Point' in the Bronx from the Trump Organization last year, providing Trump with tens of millions of dollars. Wall Street believes that if Soo Kim, who has a business relationship with Trump, acquires CNN, which symbolizes the anti-Trump sentiment, it could alleviate political risks and facilitate regulatory approval.

◆ Paramount's Entry Complicates Round Two

A variable is the emergence of Paramount Skydance. Despite the contract with Netflix being signed, Paramount Skydance recently declared a 'hostile takeover' of Warner Bros, pushing the acquisition battle into round two.

FT reported, "Soo Kim's side declined to comment on this report, but his entry will be a significant variable in determining the fate of Warner Bros' cable assets." The world is focused on the outcome of the media war involving Netflix, Paramount, and the Korean hedge fund tycoon.