Discovery sells GB News stake as directors resign in shake-up

theguardian.com:

US media group Warner Bros Discovery is to sell its stake in GB News, in a shake-up which has seen the loss-making television channel’s co-founders sell-up and resign as directors, and the remaining backers step forward with a further £60m in cash.

The fledgling news channel, which originally said its first £60m fund raising last January would last three years, has tapped Legatum Ventures and hedge fund boss Paul Marshall for more funds after just 18 months.

The company also announced that co-founders Andrew Cole and Mark Schneider, who set up GB News’ parent company last February, have resigned as directors and sold their stakes in the business.

Warner Bros Discovery said its decision to leave GB News was due to a rationalisation of its portfolio following the merger of Discovery and WarnerMedia.

Discovery made the majority of the first £60m round of investment in GB News last January and the company’s desire to exit the venture first emerged in June.

“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,” a spokesperson for WBD said. “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.”

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 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,” McCormick said.