Warner Bros. Discovery Deal Causes New Concerns at CNN
Just hours after Netflix withdrew its bid for Warner Bros., CNN CEO Mark Thompson addressed staff concerns regarding the transition in ownership in a memo. “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 wrote.
However, the atmosphere at the cable news network remained grim. According to an unnamed source, many employees described the mood on Friday as “beyond bleak,” illustrating the skepticism prevalent in today’s media landscape, particularly amid layoffs and corporate buyouts.
Paramount has not yet detailed its specific plans for CNN following its acquisition of Warner Bros. Discovery, but speculation has been rife since the company emerged as the winning bidder. Questions loom about how a David Ellison-led company might reshape CNN.
Concerns heightened after the Wall Street Journal reported in December that Ellison assured former President Donald Trump he would implement significant changes at CNN, a network that has frequently been a target of Trump’s criticisms. Ellison’s appearance at Trump’s State of the Union address, seated near congressional ally Sen. Lindsey Graham (R-SC), further stoked fears about the network’s editorial future.
“There should be a lot of concern and consternation,” stated Frank Sesno, a professor at the George Washington School of Media and Public Affairs and a former Washington bureau chief for CNN.
Sesno, who experienced two previous mergers during his tenure with CNN, noted that the primary questions then were whether corporate interests would align with journalistic values. This time, however, he expressed heightened concern regarding the impact of political affiliations on CNN’s editorial direction.
“Does CNN’s unique global presence matter?” Sesno asked. “Given all the politics, and the sturm und drang around the Ellisons, and what we know and what was said, there is reason to be concerned.”
During the bidding process last year, many observers expected Paramount to win, resulting in the company acquiring two significant news outlets—CBS News and CNN. Veteran media professionals speculate this dual ownership could be more problematic for CBS News due to its heavy unionization in an environment where Paramount faces pressure to reduce costs.
Sesno identified three major areas of concern: the editorial direction, how resources will be consolidated for cost-effectiveness, and the organizational structure moving forward. He emphasized the political pressures raised by the Ellisons’ known ties to Donald Trump, who openly indicated his preference for the successful bidder in this merger.
Yet Another Period Of Uncertainty
CNN now finds itself navigating another era of uncertainty, having already faced ownership changes twice in the past decade. During AT&T’s acquisition of CNN’s parent company, Time Warner, the Justice Department intervened, alleging retaliation from Trump due to the latter’s disdain for the network. Although AT&T emerged victorious, concerns about Trump’s influence lingered.
What distinguishes this current situation is the overt nature of lobbying efforts aimed at favoring the new ownership. Trump had previously commented on his involvement in the regulatory process, a departure from traditional presidential practices of maintaining distance. Though he later claimed he would defer to the Justice Department, he made headlines for demanding that Netflix dismiss board member Susan Rice.
The anxiety surrounding the acquisition also stems from how Skydance’s purchase of Paramount Global was negotiated last year. As the deal progressed, the previous Paramount owners settled Trump’s lawsuit against CBS for $16 million, a case criticized as baseless by many legal experts.
To facilitate regulatory approval, Skydance pledged to appoint an ombudsman to address newsroom complaints, and subsequently appointed Bari Weiss as editor in chief of the news division. Weiss’s strategy aims to regain viewer trust amid shifting habits toward streaming and social media while rebuilding credibility, a challenge echoed in public sentiment.
The Problem Of Trust
Sesno acknowledged the widespread issue of trust across news organizations, applicable to those perceived as either left-leaning or right-leaning. He warned against the oversimplification that suggests building trust requires avoiding rigorous accountability.
“We have a false equivalency here that creates confusion in the public’s mind and oversimplifies the problem and the challenge that confronts people seeking to do journalism in the way that it is meant to be done,” he stated.
Efforts to address trust may inadvertently provoke unease within news divisions, as there is often a perception that such changes signal a shift toward a more conservative stance, potentially alienating loyal audiences on the left.
As CBS News undertook layoffs and offered buyouts, some departing staff expressed disdain for the new strategy. Producer Mary Walsh, who exited after 46 years, remarked in a message to colleagues, “maybe it’s for the best. We’ve been told to aim our reporting at a particular part of the political spectrum. Honestly, I don’t know how to do that.”
In its announcement of the merger on Friday, Paramount emphasized that a complementary portfolio of cable networks spanning entertainment, sports, and news would enhance cash flow and operational efficiencies, though it did not provide specific commitments for CNN.
“I’m very worried about the people there,” said Jim Acosta, a former CNN anchor and chief White House correspondent who left last year to start his own media company. “From everything I hear, many of the staffers at CNN work with perpetual job fear. And now this …”
