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CNN and Cable Networks Face Uncertain Future Amid Paramount-Netflix Bidding War
CNN and its sister cable networks find themselves thrust back into management uncertainty following Paramount Skydance’s hostile takeover bid for Warner Bros. Discovery, complicating what was already a challenging period for the news organization.
The situation took a dramatic turn last week when Netflix announced plans to acquire Warner’s studio and streaming businesses, initially bringing some relief to CNN since the cable network wasn’t included in that transaction. However, Paramount’s subsequent bid on Monday, which specifically targets the cable assets Netflix doesn’t want, has renewed concerns about CNN’s future and raised the possibility of a merger between CNN and CBS News.
This prolonged period of corporate limbo adds to CNN’s existing struggles. The network has fallen to third place in cable news ratings behind Fox News Channel and MS NOW (formerly MSNBC). Under CEO Mark Thompson, CNN has pivoted toward digital expansion, launching a new subscription service with management approval for investment through 2026.
“I know this strategic review has been a period of inevitable uncertainty across CNN and indeed the whole of WBD,” Thompson acknowledged in a staff memo following the Netflix announcement. “Of course, I can’t promise you that the media attention and noise around the sale of our parent will die down overnight. But I do think the path to the successful transformation of this great news enterprise remains open.”
The network’s current challenges stand in stark contrast to its early days under founder Ted Turner, who sold the company in 1996. “That era might as well be the roaring ’20s for how long ago it feels,” noted Ross Benes, senior analyst at emarketer.com.
Tom Johnson, CNN president during the 1990s, expressed concern about the dueling bids, saying they “lead to more uncertainty and greater anxiety among the current CNN staff and among those of us who served for many years as leaders of CNN under Ted.”
The potential Paramount takeover introduces political dimensions as well. Paramount Skydance chairman and CEO David Ellison and his father, Oracle founder Larry Ellison, have close ties to former President Donald Trump. However, Trump recently expressed anger on social media over CBS’s “60 Minutes” report featuring former U.S. Rep. Marjorie Taylor Greene, questioning whether the new ownership at Paramount was “no better than the old.”
During a CNBC appearance Monday, Ellison confirmed his intention to combine CNN’s newsgathering operations with CBS News if the takeover succeeds. “We want to build a scaled news service that is basically, fundamentally, in the trust business, that is in the truth business, and that speaks to the 70% of Americans that are in the middle,” Ellison stated.
This potential merger comes amid notable shifts at CBS News since Paramount’s takeover this summer. The network has made moves to appeal to more conservative viewers, including the appointment of Free Press founder Bari Weiss as editor-in-chief. Weiss is set to moderate a prime-time discussion with Erika Kirk, widow of slain conservative activist Charlie Kirk.
Prior to these competing bids, Warner Bros. Discovery had planned to spin off its cable television networks—including CNN, Discovery, HGTV, the Food Network, and TLC—into a separate company called Discovery Global. This strategy reflected the declining value of cable networks in an era dominated by streaming services.
Industry experts predict a lengthy resolution process regardless of which company ultimately prevails. Even before Paramount’s bid, the Netflix deal was expected to face more than a year of regulatory scrutiny. Should Netflix eventually win, Benes from emarketer.com suggests Discovery Global would likely be shopped to other buyers.
“CNN will be in limbo for a while no matter which bidder purchases CNN,” Benes concluded.
Johnson, the former CNN president, emphasized the broader implications: “There is such a need for independent, unbiased news services. I so hope that the new CNN owners will see that as their fundamental mission.”
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13 Comments
Interesting to see the ripple effects of this Paramount-Netflix bidding war on the future of CNN and other cable networks. With the industry in flux, I wonder how this will impact their news coverage and digital expansion plans going forward.
You raise a good point. The corporate uncertainty could create challenges for CNN, but also potentially opportunities to innovate if they play their cards right.
It’s an uncertain time for CNN, but I’m curious to see if the potential Paramount-Warner merger could open up new opportunities for the network’s future. Diversifying their revenue streams beyond traditional cable could be a smart move.
That’s an insightful perspective. Diversification may be key for CNN to remain resilient and relevant in the face of industry consolidation and evolving consumer habits.
The corporate uncertainty surrounding CNN is concerning, but I’m hopeful they can weather the storm. Their ability to maintain focus on quality reporting and adapt to industry shifts will be key to their future viability.
This is a complex situation with a lot of moving parts. While the shakeup creates short-term instability, it may eventually lead to new strategic alignments that strengthen CNN’s position in the evolving media landscape.
That’s a fair assessment. Consolidation in the industry often brings both risks and chances for renewal. We’ll have to see how it all unfolds for CNN.
The cable news landscape is in flux, and CNN finds itself in the middle of a high-stakes corporate chess match. Their ability to weather this storm and emerge stronger will depend on agile leadership and a clear strategic vision.
The battle for control of CNN’s parent company is a high-stakes game with serious implications for the network’s direction. I hope they can maintain their journalistic integrity and continue providing quality news coverage no matter how the corporate ownership shakes out.
This is a challenging time for CNN, but also an opportunity to reimagine their business model and strengthen their position in the evolving media landscape. Thoughtful leadership and a willingness to innovate will be critical.
Well said. Adapting to change while upholding journalistic values will be crucial for CNN’s long-term success, regardless of who ends up owning the parent company.
CNN’s pivot to digital expansion seems prudent given the traditional cable news model’s struggles. However, the takeover bid uncertainty complicates their planning and execution. Careful navigation will be crucial in the months ahead.
Agreed. CNN will need to carefully balance their digital strategy with managing the corporate transition. Maintaining focus on quality journalism will be key regardless of ownership changes.