Warner Bros. Discovery has decided to sell its stake in UK news channel GB News, in a shake-up which has seen the television channel’s co-founders, Andrew Cole and Mark Schneider, sell-up and resign as directors, and the remaining backers step forward with a further £60 million in cash.
Warner Bros. Discovery said its decision to leave GB News was due to a rationalization of its portfolio following the merger of Discovery and WarnerMedia. Discovery was the first major investor in GB News, injecting £20 million of the first £60 million round of funding last January. Legatum Ventures Limited then matched that investment becoming the venture’s joint biggest shareholder.
“Following the merger between Discovery and WarnerMedia earlier this year, our portfolio now includes several wholly owned news brands including CNN Worldwide, TVN Group in Poland and Newshub in New Zealand. In light of this, and our continued evaluation of our global and local investment portfolio, we have exited our investment in GB News and are no longer shareholders,” a spokesperson for the group said in a statement.
“Discovery was one of the first organizations to invest in GB News. GB News has built a growing and loyal audience in its first year, bringing another voice to British news broadcasting, and we wish the management and shareholders the very best in their future endeavors,” the statement added.
The latest round of funding has been led by existing investors Legatum Ventures, the Dubai-based investment firm co-founded by GB News’ Chairman Alan McCormick and Sir Paul Marshall. Legatum and Marshall have bought the stakes held by Discovery, Cole and Schneider. “This is testament to our confidence in the momentum and trajectory of GB News after a very strong first year. Our additional investment means the channel will embark on robust and exciting plans for the next stage of its growth and development,” McCormick declared.
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