When Donald Trump talks, the stock market listens. Just ask Time Warner, who lost millions in a matter of minutes Wednesday after Trump called out CNN’s coverage of fake news about him.
CNN and BuzzFeed are under fire for reporting on a “dossier” the Russians supposedly compiled. The dossier supposedly contained salacious information about Trump, and could have been used to blackmail him. Most news outlets refused to cover the story, as the facts could not be verified. The report was widely discredited on Tuesday. On Wednesday, Trump attacked both BuzzFeed and CNN for their coverage of the report.
The news could be even worse today for Time Warner, the parent company of CNN. AT&T is in talks to acquire Time Warner for more than $84 billion, but Donald Trump opposes the merger. He is set to meet with AT&T executives today about the proposed deal. With CNN’s actions angering the President Elect, the CNN fake news controversy could potentially cost both sides billions.
Today, Time Warner stocks have been on a roller coaster, rising and falling as news breaks on the “fake news” scandal. For once, CNN’s media bias is hurting them where it counts – the pocket book.
— Carl Quintanilla (@carlquintanilla) January 11, 2017
Steve Kopack, a social lead for CNBC’s breaking news desk, also stated that shares “fell to session low.”
While the dip was just “1.2%,” Kopack asserted the incident showed the “power of Trump’s comments.”
“Should be noted that the $TWX move was an approximately 1.2% or $1.10/share move total, but shows power of Trump comments,” Kopack added.
During the press conference Trump also pointed to numerous other journalists in the crowd and similarly branded them as “fake news.”
— Steve Kopack (@SteveKopack) January 11, 2017
Time Warner is not the only corporation feeling the Trump effect. After the President Elect mentioned the rising costs of drugs in health care, it is reported that Big Pharma lost $24 billion in stock value at one point. While they recuperated much of that loss, the message sent is clear. Do not cross Donald Trump.
What do you think of the effect of the CNN fake news scandal on Time Warner’s stock price? Tell us in the comments below.
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