Anderson, cooped. Jake, tapped. Erin, burnt. Kasie, hunted. Wolf, blitzed.
Fears are running high among staffers at CNN, according to three people familiar with the network, after parent Warner Bros. Discovery reverse a decision to sell its streaming and studio assets to Netflix and instead package the whole company for Paramount Skydance. Paramount has, in its earliest months under new management, shown itself to be a shaky custodian of its journalism operations at CBS News, and CNN employees fear the deal will bring more of the same to their own independent newsgathering.
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CNN employees are “devastated” by news of the Paramount deal, says one of these people. “No one is happy,” says a second. There is palpable dread among staffers, these people say.
Netflix on Thursday said it would walk away from its agreement with Warner, following a revised bid from Paramount that Warner said was “superior.” Warner CEO David Zaslav on Thursday during an investor call said the company had put a “rigorous” process in place that was aimed at getting the maximum value for Warner’s properties, which in addition to CNN include HBO Max, TNT and Food Network.
In changing their alliances, however, the companies have set in motion another shaky chapter for CNN, where employees have kept reporting through a sale to AT&T; two adversarial terms of Trump; a Biden White House that often avoided the press; and a sale to Discovery. With all that has come multiple changes in leadership; several rounds of layoffs; and a growing focus on digital audiences.
Paramount has made little effort to contain its zeal to be friendlier to the Trump administration. In the future, such kowtowing could crimp its financial health, suggested Blair Levin, an analyst with New Street Research. “Talent will see PSKY as the entity most willing to adjust its news and entertainment offerings to curry favor with Trump,” he said in a research note issued Thursday, referring to Paramount’s ticker symbol. “Because PSKY has broadcast licenses and Netflix does not, the entire PSKY media ecosystem is subject to ongoing government pressure.”
Ironically, the combination of CBS News and CNN has been of interest in the past. Warner and CBS have considered some sort of joint venture or combination of the two news divisions, but turned away from pursuing them further due in part to unions being in place at CBS News.
CBS News has weakened in recent months. Bari Weiss, a former opinion journalist who sold her conservative Free Press to Paramount for a reported $150 million, has taken the reins of editorial operations at the news division, and, through several management gaffes, has attracted unwanted attention. Some of it has landed on “60 Minutes,” one of TV journalism’s crown jewels and one of the best-known media properties in the Paramount portfolio. Weiss has articulated a plan to focus more heavily on digital audiences, even though CBS News’ TV properties continue to draw more advertising. Staffers have complained publicly about worries tied to having stories need to meet a preconceived slant. In what is taken as a strong sign of dissatisfaction with current leadership, Anderson Cooper said earlier this month he would leave “60 Minutes” after serving as a correspondent for the program for two decades.
Meanwhile, CBS News has seen other declines. “CBS Evening News,” which entered a new tenure in January with new anchor Tony Dokoupil, is seeing viewership erode once again after a brief spike. Last week, an average of about 4.17 million viewers tuned into “CBS Evening News” – on par with the audience who watched Dokoupil in his first week at the helm of the venerable program. The show’s audience last week was down 10% from the year earlier period. “CBS Mornings” is also in tough shape, winning an average of just 1.71 million viewers last week, down 14% from the year-earlier period.
The business of CNN has eroded as well. Initially boosted during Jeff Zucker’s time as CEO, the news outlet has lost viewers and some influence as subsequent managers tried to tamp down some of its more outspoken personalities and tendencies. The network is expected to create adjusted operating profit of around $600 million, according to a January SEC filing by Warner Bros. Discovery. During Zucker’s tenure, CNN had created $1 billion in profit.
Under Zucker, CNN took on a crusading tone, one that helped draw more viewers. But Zaslav, and his hand-picked chief Chris Licht, wanted to tone that down and chase the conservative viewers that help fuel Fox News Channel. The results were less than robust. Don Lemon, Poppy Harlow and others left the network as executives overhauled primetime and tried to launch a new morning show.
Now, under Mark Thompson, Warner expects CNN to generate revenue of $1.8 billion in 2026, rising by $100 million in each of the next four years to hit $2.2 billion by 2030. Those numbers will only be borne out if CNN’s new subscription business, CNN All Access, priced at $6.99 per month, is a success – no guarantee in a crowded sector filled with rival businesses from NBC News, Fox News Channel, ABC News and CBS News, not to mention dozens of journalists turned digital creators. Indeed, CNN’s core revenue is projected to decline from 2026-30 at a -4% compound annual growth rate. CNN is counting on All Access to generate $600 million by 2030.
CNN’s leader asked his staff to try and stay calm. “Despite all the speculation you’ve read during this process, I’d suggest that you don’t jump to conclusions about the future until we know more,” Thompson said in a memo issued Thursday evening, adding: “Let’s continue to focus on delivering the best possible journalism to the millions of people who rely on us all around the world.”
At CNN, the worry is that new owners will distract from that mission.
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