WARSAW (Reuters) -Warner Bros Discovery ( WBD ) has decided not to sell Polish broadcaster TVN, it said on Monday, drawing a line under speculation surrounding the future of the company, which is considered strategic by the Polish government.

The volatility unleashed by U.S. President Donald Trump's tariff policies has led many investors to put deal-making activity on hold. And a source had already told Reuters on Monday that one suitor dropped its bid for TVN due to geopolitical risks and recession fears.

Warner Bros Discovery ( WBD ) said in a statement sent to staff and seen by Reuters that it had reached its decision following a strategic review of its options for the Polish broadcaster.

"WBD has concluded that the best path forward is retaining ownership of TVN, continuing to support our business, our strategy and the incredible journalistic work of our team," it said.

The race to buy the operator of news channel TVN24 had included Polish businessman Michal Solowow, his MS Galleon fund said, and media group WP Holding, according to a source familiar with the matter.

Though initially interested, sources told Reuters in February that MFE-MediaForEurope, the broadcaster controlled by Italy's Berlusconi family, was dropping its bid.

In a response to Reuters's questions, WP Holding said it does not comment on acquisition processes.

MS Galleon and MFE-MediaforEurope did not immediately respond to Reuters' requests for comment.

STRATEGIC COMPANIES

The Polish government added several media and telecommunication firms, including TVN, to its list of strategic companies in December, a move that would have required government signoff on any sale of the broadcaster.

Polish authorities are on high alert against the risks of Russian interference in May's presidential election, and the move highlighted TVN's important place in the country's media landscape.

U.S. media group Scripps Networks bought the TVN Group in 2015 before it was itself absorbed by Warner Bros Discovery ( WBD ) following Warner Bros' 2022 merger with the Discovery Channel.

Warner Bros Discovery ( WBD ) decided in December to separate its declining cable TV businesses from its streaming and studio operations, placing them in a unit called Global Linear Networks.

TVN Group revenues increased around 6% year-on-year to 2.26 billion zlotys ($603.26 million) in 2023 with net profit up over 26% at 419.7 million zlotys.

($1 = 3.7463 zlotys)

(Reporting by Barbara Erling and Amy-Jo Crowley; Writing by Alan Charlish; Editing by Kirsten Donovan and Joe Bavier)