Paramount CEO David Ellison Advocates for CNN’s Independence
Paramount CEO Supports CNN Amid Acquisition Concerns
Paramount CEO David Ellison spoke highly of CNN during a recent CNBC interview, describing it as “an incredible brand with an incredible team.” He emphasized the importance of maintaining journalistic independence, stating, “We absolutely believe in the independence that needs to be maintained obviously for those incredible journalists, and we want to support that going forward.”
Ellison’s remarks come as CNN employees express anxiety over their future following Paramount’s agreement to acquire Warner Bros. Discovery. “We’re going to invest in the news business. And we think this transaction will be a positive for both CBS News and CNN,” he added.
In his commitment to advancing the news departments, Ellison outlined plans for both CNN and CBS News to transition effectively to streaming platforms. He stated, “If they want to watch our incredible news brands on broadcast, they can do that. If they want to watch on cable, they can do that. But we also want to create a world to where if they want to watch on streaming, they can do that, and where we can really meet consumers where they are.”
Despite the promising outlook, concerns linger within CNN regarding potential cutbacks as the network becomes part of a larger corporate structure under CBS. The broadcast network has initiated a transformation since Ellison’s Skydance purchased Paramount last year. As part of these changes, Skydance has committed to hiring an ombudsman for news coverage complaints, appointing Kenneth Weinstein, head of a conservative think tank, to the role. Additionally, Bari Weiss, founder of The Free Press, has been named editor in chief of CBS News.
In light of the acquisition, CNN chairman and CEO Mark Thompson reassured employees last week, urging them not to “jump to conclusions about the future until we know more.”
On the film front, Ellison vowed that neither of the iconic studio lots would be sold, asserting their historical value as the merger progresses.
Paramount’s long pursuit of Warner Bros. Discovery culminated in a deal valued at $31 per share in cash, amounting to an enterprise value of $110 billion. However, the exponential debt level of approximately $80 billion raises concerns within the industry. Reflecting on Warner’s previous struggles post-acquisition, Ellison remains optimistic. “Where the Warner Discovery merger basically got into trouble is that linear declined faster than people anticipated… We’ve taken a very, very conservative view to that in our models to ensure that we never get into a position where that’s not manageable,” he explained, confident in Paramount’s financial stability with projected revenues of $69 billion and over $10 billion in cash flow.
This report was contributed to by Ted Johnson.
