Politics
NEW: CNN’s Future In Doubt After Parent Company’s ‘Telling Move’
CNN’s future is now in serious question after Warner Bros. Discovery (WBD) announced a stunning decision to break up its media empire, leaving CNN behind in a division many see as a corporate dumping ground.
The company revealed plans to split into two separate publicly traded entities by mid-2026: one focused on streaming and studios (like HBO and Max), and the other—called “Global Networks”—housing CNN, TNT, TBS, Discovery, and other legacy cable properties. That second bucket is also where most of WBD’s $37 billion debt load is headed.
On June 9, WBD announced they would “separate the company, in a tax-free transaction, into two publicly traded companies, enabling each to maximize its potential. The Streaming & Studios company will consist of Warner Bros. Television, Warner Bros. Motion Picture Group, DC Studios, HBO, and HBO Max, as well as their legendary film and television libraries.”
“This separation will invigorate each company by enabling them to leverage their strengths and specific financial profiles. This will also allow each company to pursue important investment opportunities and drive shareholder value,” said David Zaslav, President and CEO of Warner Bros.
“At Global Networks, we will focus on further identifying innovative ways to work with distribution partners to create value for both linear and streaming viewers globally while maximizing our network assets and driving free cash flow.”
However, one insider told Fox News, “Putting a bean counter as CEO sends a very clear message: this is finally the beginning of the long-overdue correction of the [Jeff] Zucker-era excesses.”
Jeff Zucker, the former CNN president ousted just before the network’s 2022 merger, was long known for showering top talent with generous salaries. But in today’s media landscape — where CNN is bleeding viewers — the insider says those inflated paychecks are no longer sustainable.
“It’s not just the overpriced talent. It’s the overpriced producers. The overpriced executives. The superfluous reporters who barely are on the air. All will either be exited or forced to take massive pay cuts,” the person told Fox.
The source warned that the fallout won’t stop at the top: “But it will be most devastating for the rank and file. With no union protections, there will be massive layoffs and those remaining will be asked to do the work of their departed colleagues.”
And while some may be tempted to mock the struggling liberal network, the insider offered a sobering reminder: “Everyone should feel some sympathy for what’s about to happen,” they added. “There’s nothing but tears on the horizon for CNN.”
“They no longer have much value since it’s now easier and cheaper to get video and live reports from news events, especially international events, which is their core competency,” the insider continued. “And their content — especially on CNN.com — isn’t good enough to charge subscriptions.”
According to the source, the financial reality is grim and only getting worse. “Their revenue model is in collapse, but it’s a slow death. Gunnar has about ten years to squeeze every last penny out of that place before rigor mortis.”
“CNN’s first- and second-tier talent now make, thanks to Jeff Zucker buying their loyalty, about five times what they’re worth on the open market,” the insider said. “All talent should be offered a choice of an immediate pay cut — based on a market analysis of their actual value — with a three-year contract renewal, or we pay out their remaining contract and terminate them.”
The same source claims CNN could dramatically slash overhead with little impact on its actual performance. “Overall, you could reduce costs at CNN 50-60% with no change to ratings or revenue, and manage the decline from there, with increasing, annual cutbacks as you wind the company down,” they added. “Basically, do palliative care.”
