Warner Bros. Discovery, the media arm of AT&T, is reportedly considering a sale of ratings–challenged news giant CNN.
The possibility has sparked speculation that former CNN CEO Jeff Zucker could make a bid to buy the network he once ran — despite his being ousted after an undisclosed relationship with former CNN flack Allison Gollust early last year.
Zucker might seek to buy CNN as a way to “get back on top.” A friend of the executive said it would be the “ultimate revenge“ after his embarrassing ouster.
A source familiar with Zucker‘s thinking downplayed the possibility, however, claiming that CNN is “not on his agenda.”
David Zaslav, CEO of Warner Bros. Discovery, is allegedly assessing the damage left by Chris Licht‘s failed attempt to pivot CNN to the center of US politics. Zaaslav has taken responsibility for Licht‘s strategy and is being aided in this by chief operating officer David Leavy and editorial veterans Amy Entelis, Virginia Moseley, and Eric Sherling.
According to the New York Times, CNN made roughly $750 million in profit last year, down from $1.25 billion the previous year. This could explain why Zaslav is in search of either merging with or selling the foundering network.
One possible scenario that is being floated in media circles is a merger between NBCUniversal parent Comcast and Paramount. But such an acquisition could result in a forced sale of CBS News due to antitrust constraints. It is speculated that NBCUniversal could potentially absorb CNN and combine forces with CBS News in what could be a savvy business move.
Edward Jones analyst David Heger commented on the situation, noting that while CNN helps Warner Bros. Discovery to sell its networks in a package to cable networks, the company’s Food Network and HGTV are must-haves and could stand on their own.
“I don’t know if CNN has to be a core business to Warner Discovery,” Heger said. “I certainly see at this juncture if they don’t find the right leader for CNN, an alternative might be to sell it to someone else.”
Whatever the outcome, a possible sale of CNN would be an interesting turn of events that could prove to be one executive‘s “ultimate revenge” if he is successful in his bid. The outcome of the situation remains to be seen, but it could pave the way for some interesting changes to the media landscape in the near future.
