Foreign Investors Could Trigger Congressional Vetting of A CNN Sale

A rumored sale of CNN to its onetime CEO could see the network come under foreign influence as one industry insider has warned much of the money could come from the United Arab Emirates, reports The Daily Mail.

Ivan Schlager of Kirkland & Ellis - an expert on foreign influence regulation - made the assertion on Monday, as the network could face being sold by boss David Zaslav and ousted Jeff Zucker emerging as a frontrunner to snap it up.

What could they be plotting? @donlemon enjoys dinner with ex-CNN CEO Jeff Zucker and Allison Gollust on the Amalfi coast amid rumors they could be putting together a bid for embattled networkhttps://t.co/xlp2ofIfhR

— johnny dollar (@johnnydollar01) July 5, 2023

Just over a year ago, Zucker, who has close business ties Abu Dhabi-based International Media Investments, was forced to resign 15 years into his CNN tenure after the company found he was having a relationship with a fellow staffer.

After the surprise nixing of his replacement, former Late Show boss Chris Licht, the 58-year-old is allegedly ready to take the helm again - by shelling out what could be billions for the struggling news station.

But according to Schlager, such a transaction could prove troublesome, given much of Zucker's money could actually be quiet investments from the Middle Eastern country.

Jeff Zucker

Schlager told news site Semafor how an increasing amount of these high-profile sales have involved funds from either the Saudis or Quataris, often to little attention.

The government of the latter - an oil-rich nation that borders the UAE -  already funds Al Jazeera, a global news network that Schlager said could serve as a precursor of what's to come if CNN sells to Zucker to the tune of billions.

Lamenting the prospect of 'another Al Jazeera' to Semafor, Schlager said there was still hope - if Congress blocks the deal over concerns of foreign backing.

He cited how a similar sale of Forbes to Indian investment firm Sun Group has been held for months over such political concerns. 

In this case, Schlager said, a foreign-backed bid for CNN could trigger 'the mother of all Committee on Foreign Investment [CFIUS] reviews', leaving the prospective sale in figurative limbo similar to that of Forbes.

He said if the full amount of the UAE's part in the investment comes as more than 25 percent of the total, he expects Congress to vet the transaction accordingly.