Media Insider Predicts CNN’s “Tears on the Horizon” after WBD Corporate Split

CNN has since had “tears on the horizon” Warner Bros Discovery Last week, Media Insider announced that it would be split into two companies by separating the studio and streaming business from its cable television network.

The corporate split, which is expected to be completed by mid-2026, will have a major impact on CNN. This is treated as a declining asset that overwhelms WBD’s sinier companies.

About three years ago, Discovery Inc. merged with WarnerMedia to create Warner Bros Discovery in many fanfares as CEO David Zaslav promoted the company as “the best place for impactful storytelling.” Things didn’t go exactly right. WarnerBros.Discovery CFO Gunnar Wiedenfels leads a spinoff group of cable assets, including CNN, and Zaslav maintains the studio and streaming business.

“Placing the bean counter as CEO sends you a very clear message. This is the beginning of a long-standing fix for the overload of the (Jeff) Zucker era,” a media insider close to CNN told Fox News Digital.

Warner Bros. Discovery announces major corporate restructuring to separate streaming from cable

Certainly, former CNN boss Jeff Zucker, who was kicked out prior to the 2022 merger, Keep his anchor happy With a noble salary. Insiders believe that bloated pay is not justified recently when CNN struggles to attract a respectable audience.

“It’s not just about high-value talent. It’s an expensive producer. A high-value executive. An extra reporter that’s barely broadcast.

“But it will be the most devastating for the ranks and files,” they continued. “There is a massive layoff due to the lack of union protection and those who remain are asked to do the work of their deceased colleagues.”

The insider added, “Everyone should feel some kind of sympathy for what happens,” even if you’re not a fan of Liberal Network’s products.

CNN was hit A wide range of ratings In recent memory, it marked the second month in demographics cited by adult advertisers aged 25-54, both in total day in May and in Primetime viewers. The network has removed viewers in all categories compared to 2024, and is at the pace to have the lowest year of the demo.

Fox News beat ABC, NBC and CBS during weekday prime time, with CNN winning the lowest week of the year

CNN CEO Mark Thompson is trying to highlight digital content amid a collapse in linear valuation, but the second longtime media industry insider who once worked for CNN hasn’t improved.

“There are only tears on the horizon at CNN,” they told Fox News Digital.

“They are no longer worth it as it’s easier and cheaper to get video and live reports from news events, especially international events, which are core competencies. Content, especially on CNN.com, is not enough to charge a subscription,” they continued. “Their revenue model is falling apart, but it’s a slow death. Gunners have about 10 years to squeeze the last penny from that spot before the rigor bone muscle.”

CNN shows on national networks typically staff more than programs relating to MSNBC and other cable news channels. The second insider feels that Wiedenfels can start by starting with “starting with a 70% reduction for every team in the CNN US, and that their staff can start by bringing staff to their competition before pivoting to talent pay.

“CNN’s first and second tier talents must either immediately cut down all talents or pay the remaining contracts and terminate them, thanks to Jeff Zucker’s purchase of loyalty, with current contract renewals, based on market analysis of actual value.

“Overall, you can reduce CNN 50-60% costs without changing to ratings or revenue and manage the decline from there. “Essentially, do palliative care.”

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WBD insiders pointed out that it’s too early to speculate about this type of plan, and rumors about cost savings appear to be from people who “don’t know.” The same insider noted last week’s investors’ phone call, Wiedenfels expressed excitement about the cable network that includes investment opportunities.

Economist Michael Santo is optimistic and feels that if consumers learn to “look over extreme political polarization in ways that will allow Americans to trust news reports again.”

“CNN is actually a gem of the WBD fold. There is a historic and iconic place for groundbreaking coverage of China’s Tiananmen Square Massacre, an attempt at a communist coup against Gorbachev, and an unparalleled coverage of the 1991 Iraq War. Fox News Digital.

Meanwhile, CNN has been assaulted in the media since the coming split was announced.

Variety, a product publication in Hollywood and media, shining the spotlight on CNN’s disaster last week when it announced it had hired advertising executive Guygliggs as new senior vice president of advertising sales and client partnerships.

According to estimates from Kagan, a research unit for S&P Global Market Intelligence, “CNN is projected to lose both subscribers and advertising revenue over the next year. CNN’s advertising revenue is expected to be $563 million in 2024. $518.1 million, Diversity reported.

Dylan Byers, a former CNN media reporter who now covers the Pack industry, said “I received a ton of text messages from CNN ADDLED employees.”

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“As you may have guessed, running a 24/7 global news network with foreign stations is expensive, and the economics of the underlying units makes sense to the people in the building.

“Inevitably, Gunnar looks at CNN and decides that at a small cost, it can maintain a relatively similar profit,” Byers continued. “This will have a recognizable impact on the talent aspect. For example, will Gunnar pay Anderson Cooper $18 million a year when Kaitlan Collins extract the same rating on about a fifth of his salary?”

Byers evoked HLN, the once-famous CNN sister network, officially known as Headline News, which ended all live programming in 2022. This comparison is essentially a nightmare fuel for CNN loyalists who don’t want to see their networks suffer from similar fates.

“Does CNN’s stations and infrastructure make economic sense in this brave new world? Of course, it’s getting less and less. Over time, it looks like HLN. This is one of the reasons why HLN no longer exists.” “It exerts significant critical layoffs, reduced resources, and digitity in. Sh-ttier offices, fewer perks, and more scrutiny of T&E.”

CNN did not immediately respond to requests for comment.

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