Paramount Skydance has emerged as the frontrunner to acquire Warner Bros. Discovery, valued at approximately US$70 billion (approximately A$105 billion), with CNN seen as key to giving the bidder an advantage over Comcast and Netflix, according to media executives.

The battle for WBD officially began Thursday at noon, with Paramount Skydance, Comcast, and Netflix submitting bids for the company, which owns the number one Hollywood studio, number three streaming service, HBO, and CNN.

In a surprising twist, CNN is viewed as key to Paramount Skydance’s advantage.

The company’s owners, tech titan Larry Ellison and his son, Hollywood mogul David Ellison, appear to be the only bidders interested in acquiring the cable-news subsidiary as part of the deal, viewing CNN as a very profitable business worth saving despite its challenges.

The Ellisons’ bid is expected to glide through the Trump administration’s regulatory review, while Comcast and Netflix face extensive scrutiny.

“The Ellisons will get the white-glove treatment and an easy 6 months before approval,” one telecom lawyer who served in government stated.

“Brian Roberts gets a proctology exam that could last two years. Same with Netflix. The Warner board might just say it’s not worth the wait.”

Trump reportedly wants CNN, whose correspondents regularly challenge him at the White House and on Air Force One, “neutralised” from its coverage.

Larry Ellison, the billionaire Trump donor and Oracle co-founder, is seen as the vehicle to reform CNN.

If Paramount Skydance wins, Bari Weiss, the right-of-centre columnist hired to reduce left-wing bias from CBS news programming, is expected to expand oversight to include CNN’s editorial, according to sources.

Beyond political considerations, sources say the Ellisons value CNN’s business fundamentals despite declining linear TV viewership and lower ratings compared to Fox News.

CNN maintains global news reach with reporters in nearly every country, airport, and hotel presence, and generates an estimated US$500 million (approximately A$750 million) in yearly profits.

Paramount Skydance believes CNN can become more profitable by combining it with CBS’s news infrastructure and continuing migration to digital platforms away from traditional cable.

WBD CEO David Zaslav wants a deal “starting with a 3”, valued at US$30 per share (approximately A$45), or US$70 billion (approximately A$105 billion).

Media insiders are increasingly dubious that this will materialise.

Neither Comcast nor Netflix will likely pay that much as they’re bidding for portions of WBD rather than the entire company.

Selling pieces could trigger tax leakage common in such M&A transactions, depressing valuation.

The Ellisons believe they can acquire WBD for no more than US$27 per share (approximately A$40.50), significantly below Zaslav’s US$30 target.

Comcast plans to spin off MSNBC, nullifying some antitrust concerns on media consolidation.

However, if Comcast wins, Trump’s antitrust chief Gail Slater is expected to sue, focusing on Comcast merging Universal Studios with Warner Bros, potentially triggering nearly two years of legal wrangling.

Netflix faces similar hurdles combining its number one streaming service with WBD’s number three.

Netflix leadership Reed Hastings and Ted Sarandos have spent years supporting progressive causes, creating political baggage.