Anderson was silent. Jake, I tapped. Erin is burnt. Casey, hunted. Wolf, electric shock.
There is growing anxiety among CNN staff after parent company Warner Bros. Discovery reversed its decision to sell its streaming and studio assets to Netflix and instead packaged the entire company into Paramount Skydance, according to three people familiar with the network. Paramount has shown itself to be in a precarious position as manager of CBS News’ journalistic operations in the first months under new management, and CNN employees are concerned that the deal could do the same for their own independent reporting team.
CNN employees are “devastated” by news of the Paramount deal, one of the people said. “No one is happy,” said the next voice. Officials say there is a palpable sense of fear among staff.
Netflix announced Thursday that it was terminating its deal with Warner, following a revised bid from Paramount that Warner said was “excellent.” Warner CEO David Zaslav said on a conference call with investors Thursday that the company has put in place a “rigorous” process aimed at maximizing the value of Warner’s assets, which in addition to CNN include HBO Max, TNT and the Food Network.
But the two companies changed their partnership, sparking a new chapter of instability for CNN. There, employees continued to report through the sale to AT&T. Two hostile terms for President Trump. President Biden has often avoided the press. and sale to Discovery. With all this came multiple changes in leadership. Multiple layoffs. And there is a growing focus on digital audiences.
Paramount has made little effort to temper its enthusiasm for being friendly to the Trump administration. Blair Levin, an analyst at New Street Research, suggested that such flattery could undermine the company’s financial health in the future. “Talents believe PSKY is the company most active in adjusting its news and entertainment offerings to favor President Trump,” he said in a research note published Thursday, referring to Paramount’s ticker symbol. “PSKY has a broadcast license and Netflix does not, leaving the entire PSKY media ecosystem under continued government pressure.”
Ironically, the combination of CBS News and CNN has attracted attention in the past. Warner and CBS have considered some type of joint venture or merging of their news divisions, but the union presence at CBS News has deterred them from pursuing it further.
CBS News has been losing momentum in recent months. Former opinion journalist Bari Weiss, who reportedly sold the conservative Free Press to Paramount for $150 million, is leading the news division’s editorial operations and has drawn unwanted attention due to several management gaffes. Some of it was featured on “60 Minutes,” one of the crown jewels of television journalism and one of the most famous media properties in Paramount’s portfolio. Weiss has made clear plans to focus more on digital audiences even as CBS News’ television properties continue to attract more advertising. Staff members have publicly complained about concerns related to the need for the story to conform to preconceived notions. In what was seen as a sign of deep dissatisfaction with the current leadership, Anderson Cooper announced earlier this month that he was leaving 60 Minutes after 20 years as the show’s correspondent.
Meanwhile, CBS News also saw other declines. “CBS Evening News”, which took over new anchor Tony Dokoupil in January, has seen its ratings slump again after briefly spiking. An average of about 4.17 million viewers watched “CBS Evening News” last week. That’s the same number of viewers who watched Dokoupil in his first week at the helm of the venerable program. Viewership for last week’s show was down 10% compared to the same period last year. “CBS Mornings” also had a tough time, averaging just 1.71 million viewers last week, down 14% from a year ago.
CNN’s business declined as well. The news organization initially strengthened during Jeff Zucker’s tenure as CEO, but lost its audience and some influence as subsequent executives sought to rein in some of its more outspoken personalities and tendencies. The network is expected to generate adjusted operating income of about $600 million, according to a January SEC filing by Warner Bros. Discovery. During Zucker’s tenure, CNN generated $1 billion in profits.
Under Zucker, CNN took on a crusading feel, helping it attract more viewers. But Mr. Zaslav and his hand-picked chief, Chris Licht, wanted to tone it down and go after the conservative audience that fuels Fox News Channel. The results were not very robust. Don Lemon, Poppy Harlow and others left the network as executives looked to overhaul prime time and launch a new morning show.
Now under Mark Thompson, Warner expects CNN to generate $1.8 billion in revenue in 2026, increase by $100 million in each of the next four years, and reach $2.2 billion by 2030. Those numbers will only be borne out if CNN All Access, CNN’s new $6.99-per-month subscription business, is successful. There are no guarantees in a crowded field filled with rivals such as NBC News, Fox News Channel and ABC News. CBS News, not to mention dozens of journalists turned digital creators. In fact, CNN’s core revenue is projected to decline at a compound annual growth rate of -4% from 2026 to 2030. CNN expects All Access to generate $600 million by 2030.
CNN leaders asked staff to remain calm. “Despite all the speculation you’ve read during this process, I would suggest that we don’t jump to conclusions about the future until we know more,” Thompson said in a memo issued Thursday night, adding, “Let’s remain focused on delivering the best journalism possible to the millions of people around the world who trust us.”
CNN is concerned that the new ownership will divert it from its mission.
