Warner Bros. Discovery announced plans to split its cable TV networks from its streaming business, with significant implications for CNN. The corporate split is expected to be completed by mid-2026, with Gunnar Wiedenfels leading the spun-off group of cable assets, including CNN. Analysts and insiders warn that CNN’s struggles to attract a respectable audience and high talent salaries are contributing to its decline.
CNN has faced ratings lows in recent years, shedding viewers across various demographics. The network’s CEO Mark Thompson has attempted to focus on digital content amid the linear ratings collapse. However, many experts predict significant layoffs and cost-cutting measures for CNN as Wiedenfels takes over.
To reduce costs, some propose offering talent a choice of immediate pay cuts or termination, with the option to continue in a reduced capacity. Analysts estimate that CNN could cut costs by 50-60% without affecting ratings or revenue, allowing for gradual reductions in expenses.
Insiders predict that CNN’s struggling business will eventually lead to its separation from WBD, making it more challenging for the network to remain relevant. As the industry continues to decline, the financial sustainability of running a 24/7 global news network with foreign bureaus becomes increasingly uncertain.
Source: https://www.foxnews.com/media/cnn-has-tears-horizon-warner-bros-discovery-plots-network-spinoff-industry-insiders-say