Latest news with #GlobalNetworks
Daily Mail
2 days ago
- Business
- Daily Mail
Misery at CNN HQ as debt-plagued network prepares for sale and Anderson Cooper hires new agent
A dark cloud hangs over CNN headquarters as staffers brace for layoffs and a likely sale of the network amid another reshuffling by its parents company. 'I'd say the mood remains really grim,' a CNN employee told Fox News, in the wake of last week's restructuring announcement from Warner Bros. Discovery. 'People are uncertain.' Meanwhile, CNN mainstay Anderson Cooper just signed with a new talent agency for the first time in decades - a move Variety reported was is a surefire sign he is open to new opportunities. The staffer who spoke to FOX News revealed workers were already aware of WBD's plans to split into two separate companies before last week, with one centered around studios and streaming. The other, tentatively titled Global Networks, will revolve around linear TV assets like CNN. 'We knew this was happening. And it was required to be able to sell the company,' the staffer said of the split. 'People are hoping CNN will be sold,' the source continued, saying Global Networks' new chief executive, WBD CFO Gunnar Wiedenfels, warned 'there is no limit, any sale can be made at any time - to a buyer who will invest in it. That's the bottom line.' The staffer added: 'I think they've telegraphed clearly that more cuts are coming. ' The insider noted that Wiedenfels' 'remit is not to grow stuff.' 'This company is a cash-flow giant with shrinking revenue. Like that's the deal,' the source said. 'It's merely a matter of how fast it shrinks. That's why the assets were split.' Wiedenfels has already managed to reduce WBD's $55billion debt by $21 billion in less than two years. His appointment by WBC CEO David Zaslav comes after several rounds of layoffs at his behest. Less than five months ago, CNN laid off 200 staffers - all from its struggling TV division. WBD has engaged in repeated rounds as well. A staffer told the Daily Mail at the time of the most recent CNN firings that the network had become 'bloated' after Warner Bros.' merger with Discovery in 2021. The cost-cutting seen since has done little to help the conglomerate's share price, which is down some 7 percent year to date. 'And we don't have streaming yet so - it's hard to imagine it doesn't get worse,' the CNN source further told Fox, referring to an anticipated portion of CNN CEO Mark Thompson's long-in-the works restructuring plan. 'If we do not follow the audiences to the new platforms with real conviction and scale, our future prospects will not be good,' Thompson told the New York Times in January. The new streaming service set to roll out this fall, he said, would feature the network's most well-known stars. This week, reports emerged that CNN superstar Cooper is now being represented by Creative Artists Agency (CAA) after years with United Talent Agency (UTA). He will be represented by Hollywood super-agent and CAA CEO Bryan Lourd. Cooper, 58, has been with CNN since 2001 and collects an annual salary of $18million, Puck reported this week, adding that such salaries would soon be a thing of the past. The report pointed out how Wiedenfels seems poised to commence cost-cutting, after working as Discovery's and then WBD's CFO since 2017. Much of the frustration from staff has been aimed at Zaslav, a second CNN staffer told Fox News, after two years of sagging ratings, streamlining roles, and repeated promises to pivot to streaming. 'Zaslav killed this place. He killed it,' the source said. 'The last few years under Zas has been a disaster in terms of what he has done,' the person added. Prior to announcing the restructuring last week, Zaslav reportedly dismissed a split of WBD's assets - including cable stations like TNT and TBS - as a bad idea. Sources told Puck at the time that ideas to better monetize the network by Thompson were either out of date or are coming too late - forcing execs' hands. A third staffer who spoke to Fox also appeared to believe a collapse at CNN is imminent. 'I'm trying to figure out what I'll do next when the whole thing collapses, but I don't even know when that will be,' the source said.
Fox News
2 days ago
- Business
- Fox News
CNN morale 'really grim' as network faces uncertain future with corporate split, staffers warn
CNN staffers are bracing for impact as the network faces yet another corporate restructuring by its parent company Warner Bros. Discovery (WBD), fueling an unsettling morale in the newsroom. "I'd say the mood remains really grim," one CNN staffer told Fox News Digital. "People are uncertain." Last week, WBD announced that it was splitting into two companies, separating the studios and streaming business from its cable networks, CNN among them. The latter company, tentatively dubbed Global Networks, will be led by WBD CFO Gunnar Wiedenfels. The split is expected to be completed next year. "We knew this was happening," the CNN staffer said. "And it was required to be able to sell the company. People are hoping CNN will be sold - and as Gunnar said, there is no limit, any sale can be made at any time - to a buyer who will invest in it. That's the bottom line." While Global Networks will retain a 20% stake in the studio and streaming business, CNN's new parent company will have a heavy burden taking on most of Warner Bros. Discovery's massive debt. And Wiedenfels is expected to tighten the purse strings. "I think they've telegraphed clearly that more cuts are coming. Gunnar 'efficiency,'" the CNN staffer said. "And we don't have streaming yet so - it's hard to imagine it doesn't get worse [CNN is set to launch a new streaming service this fall]." "His remit is not to grow stuff. This company is a cash-flow giant with shrinking revenue. Like that's the deal. It's merely a matter of how fast it shrinks. That's why the assets were split," they continued. CNN has repeatedly been orphaned by corporate parents for years, from Time Warner in the 90s, to AOL in the early 2000s, to AT&T in 2018, leading to its 2022 spinoff of Warner Bros. Discovery led by CEO David Zaslav. In 2023, Zaslav tapped Mark Thompson, a veteran executive of BBC and The New York Times, to become CNN's CEO. Thompson has been vocal about his efforts to transform the news organization in the digital era in the nearly two years he's been on the job. But newsroom ire, at least for now, is being aimed at the WBD chief. "Zaslav killed this place. He killed it," a second CNN staffer told Fox News Digital. "The amount of debt the new thing that CNN is part of isn't ideal, but at least it can be a new beginning. The last few years under Zas has been a disaster in terms of what he has done." Industry critics like Puck correspondent Dylan Byers have predicted doom and gloom for the future of CNN, suggesting it will meet the fate of HLN, which he has noted "no longer exists." However, a third CNN staffer says critics projecting CNN's demise are simply "reading the same tea leafs as everybody else" regarding systemic problems in cable. "I'm trying to figure out what I'll do next when the whole thing collapses, but I don't even know when that will be," the third CNN staffer told Fox News Digital. "If we go under, I'll get a new job. Maybe making more money, maybe making less money, who cares? At the end of the day, it's just a job, right?" Despite all the current woes, not all hope is lost within the CNN newsroom. "I think it is possible for CNN to be invested in and be a relevant, powerful brand," the first staffer said. "To me - and I'm biased - CNN is a brand like Nike. If we throw it away, that is a choice and a management-driven thing, not a macro fait accompli." A spokesperson for CNN declined to comment. Warner Bros. Discovery did not respond to a request for comment. CNN's corporate saga comes at a rough patch for the network, which suffered its second-worst month ever in viewership the advertiser-coveted demographic of adults ages 25-54 across both total day and primetime viewers in May and is on pace to have its lowest-rated year ever in the demo.
Daily Mail
3 days ago
- Business
- Daily Mail
'Tears on the horizon' at CNN as insiders reveal stars on the chopping block after parent company's shock split
Warner Bros. Discovery's shock split into two distinctive companies is a sign the jobs and hefty salaries of CNN 's top talent are on the line, media insiders warn. The media giant announced last week it will halve into two publicly traded entities — Streaming & Studios and Global Networks — by mid-2026. Streaming & Studios' domain will be Warner Bros. Television, Warner Bros. Motion Picture Group, DC Studios, HBO, and HBO Max. Global Networks, on the other hand, will be news focused, assuming CNN, TNT Sports and Discovery, among other programming. CEO David Zaslav will take on the leading role of the Streaming & Studios company, while CFO Gunnar Wiedenfels will become the President of Global Networks. This dramatic move could be detrimental to CNN, which is already grappling with plummeting ratings. 'Inevitably, Gunnar will look at CNN and decide he can maintain relatively similar profits at a mere fraction of the cost,' Dylan Byers, a former CNN reporter who now works for Puck, wrote in an opinion piece. 'This will have perceptible ramifications on the talent side. Why, for instance, would Gunnar pay Anderson Cooper $18 million a year when Kaitlan Collins draws the same ratings at roughly a fifth of the salary?' An anonymous source familiar with the state of the left-leaning news network spoke with Fox News, reiterating there are 'tears on the horizon.' They believe 'bean counter' Wiedenfels will go after high-salaried stars, going against the precedent set by former CNN boss Jeff Zucker, who was forced out before the 2022 merger. 'It's not just the overpriced talent. It's the overpriced producers. The overpriced executives. The superfluous reporters who barely are on the air,' the source said. 'All will either be exited or forced to take massive pay cuts.' Zucker was allegedly known for overpaying talent to keep them loyal to him, Fox reported. The result - CNN's first and second-tier talent now earn roughly five times what they are worth, the insider alleged. While Cooper earns an estimated $18 million every year, Jake Tapper, who hosts The Lead with Jake Tapper, brings in roughly $7 million a year. CNN veteran Wolf Blitzer's salary is about $15 million and Chris Wallace's is approximately $8 million. Collins earns about $3 million as a primetime anchor. In May, CNN had its second-worst month in its history in the essential 25 to 54-year-old age group in both daytime and primetime viewership, Fox reported. Since last year, the network ratings declined in all categories - and the matter may only get worse, experts believe. Over the upcoming year, Kagan, a research unit of S&P Global Market Intelligence, estimated CNN will lose subscribers and revenue despite the strategic split. Revenue is expected to plummet by $499.2 million, Variety reported. The insider source said the soon-to-be Global Networks CEO could slash CNN's costs by 50 to 60 percent with no impact on revenue or ratings. They believe Wiedenfels could 'start by making 70 percent cuts to all show teams for CNN US, bringing their staffing in line with that of their competition,' before slashing talent salaries. 'But it will be most devastating for the rank and file. With no union protections, there will be massive layoffs and those remaining will be asked to do the work of their departed colleagues,' they explained. Although no layoffs or budget cuts have been set in stone, uncertainty looms among CNN staffers. Byers told Fox he has 'received a deluge of text messages from addled employees at CNN' asking what the WBD split means for their futures. Despite skepticism, WBD higher-ups believe dividing into two companies is the best possible move. 'By operating as two distinct and optimized companies in the future, we are empowering these iconic brands with the sharper focus and strategic flexibility they need to compete most effectively in today's evolving media landscape,' Zaslav said. Wiedenfels agreed this is a strategic move that will strength the 'specific financial profiles' of each company. 'At Global Networks, we will focus on further identifying innovative ways to work with distribution partners to create value for both linear and streaming viewers globally while maximizing our network assets and driving free cash flow,' he asserted.
Daily Mail
09-06-2025
- Business
- Daily Mail
Entertainment giant announces huge shakeup as it SPLITS into two separate companies
Warner Bros. Discovery has announced bombshell plans to split the massive brand into two distinctive companies. The media giant will halve into two publicly traded entities - Streaming & Studios and Global Networks - by mid-2026, according to a Monday press release. Streaming & Studios' domain will be Warner Bros. Television, Warner Bros. Motion Picture Group, DC Studios, HBO, and HBO Max. Global Networks, on the other hand, will be more news focused, including CNN, TNT Sports and Discovery, among other programming. CEO David Zaslav will assume the leading role of the Streaming & Studios company, while CFO Gunnar Wiedenfels will become the President of Global Networks. 'By operating as two distinct and optimized companies in the future, we are empowering these iconic brands with the sharper focus and strategic flexibility they need to compete most effectively in today's evolving media landscape,' Zaslav said. Wiedenfels agreed this is a strategic move that will strength the 'specific financial profiles' of each company. 'At Global Networks, we will focus on further identifying innovative ways to work with distribution partners to create value for both linear and streaming viewers globally while maximizing our network assets and driving free cash flow,' he asserted. WBD higher-ups believe the split will 'unlock' new opportunities for shareholders and the individual businesses. In the statement, the company said it intends on a tax-free separation for 'US federal income tax purposes.' Until the official structure-shift, Zaslav will continue running the entire company. This split decision comes as WBD shares are down by three percent, as of midday on Monday. Since the 2022 merger between Warner Bros. and Discovery, WBD's stock remains roughly 60 percent down, Reuters reported. Extreme competition among streaming services and a rapid decline in cable viewership have contributed to this stark decline. Experts warn slashing the company in half will only make matters worse. 'If anything, [it] could make them worse off by favoring financial engineering over focusing on improving existing operations or pursuing new opportunities for growth,' Brian Wieser, CEO of media advisory firm Madison and Wall, told Reuters. 'A deal like this can hamstring both sides of the company until the transactions are closed.' Most of the company's current debt - a whopping $38 billion as of March - will be assumed by Global Networks, Reuters reported. WBD also shared on Monday that the company received a $17.5 billion bridge loan from JP Morgan to help tackle some of the financial deficit. These drastic measures appear to be an expansion upon an earlier announcement from WBD, sharing plans to use a model dividing the company into two branches within itself. The company proposed a new operating structure in December 2024, to be implemented by mid-2025. One of the divisions - the Global Linear Networks - is focused on its television business. The second, called Streaming & Studios, is driven toward streaming platforms and setting up 'strategic opportunities' for the future. The media company described the Global Linear Network as 'a premier linear television business that operates some of the most renowned networks with compelling news, sports, scripted and unscripted programming'. Its entertainment-based counterpart will be 'a globally scaled streaming platform and storied film and entertainment studios with a portfolio of the world's most beloved intellectual property'. Zaslav said at the time: 'Since the combination that created Warner Bros. Discovery, we have transformed our business and improved our financial position while providing world class entertainment to global audiences.
Time of India
09-06-2025
- Business
- Time of India
Warner Bros Discovery to split into two companies
Warner Bros . Discovery (WBD) announced plans to separate the company, in a tax-free transaction, into two distinct publicly traded companies. This strategic move aims to enable each new entity to maximise its potential and sharpen its focus within the dynamic media landscape , said the company in an official statement. The separation will create—Streaming & Studios which will comprise Warner Bros. Television, Warner Bros. Motion Picture Group, DC Studios, HBO , HBO Max, and their legendary film and television libraries. David Zaslav , current President and CEO of Warner Bros. Discovery, will lead Streaming & Studios as its President and CEO. While Global Networks , the entity will include premier entertainment, sports, and news television brands around the world, such as CNN, TNT Sports in the U.S., Discovery, top free-to-air channels across Europe, and digital products like the profitable Discovery+ streaming service and Bleacher Report (B/R). Gunnar Wiedenfels , current CFO of Warner Bros. Discovery, will serve as President and CEO of Global Networks. Both Zaslav and Wiedenfels will continue in their current roles at WBD until the separation is finalized, according to the press statement. "The cultural significance of this great company and the impactful stories it has brought to life for more than a century have touched countless people all over the world. It's a treasured legacy we will proudly continue in this next chapter of our celebrated history,' said Zaslav. 'By operating as two distinct and optimized companies in the future, we are empowering these iconic brands with the sharper focus and strategic flexibility they need to compete most effectively in today's evolving media landscape.' Gunnar Wiedenfels added, "This separation will invigorate each company by enabling them to leverage their strengths and specific financial profiles. This will also allow each company to pursue important investment opportunities and drive shareholder value. At Global Networks, we will focus on further identifying innovative ways to work with distribution partners to create value for both linear and streaming viewers globally while maximizing our network assets and driving free cash flow.' Samuel A. Di Piazza, Jr., chair of the Warner Bros. Discovery Board of Directors, underscored the benefits for shareholders, stating, "We committed to shareholders to identify the best strategy to realize the full value of our exciting portfolio of assets, and the Board believes this transaction is a great outcome for WBD shareholders. This announcement reflects the Board's ongoing efforts to evaluate and pursue opportunities that enhance shareholder value.' In a separate press release today, Warner Bros. Discovery announced the commencement of tender offers and related consent solicitations across its existing capital structure to enhance its debt portfolio. This will be funded by a committed bridge facility of $17.5 billion provided by J.P. Morgan, which is expected to be refinanced prior to the separation. Both companies will have a clear path to de-leveraging with significant cash flow and strong liquidity through cash and revolver availability. Additionally, Global Networks will hold up to a 20% retained stake in Streaming & Studios that it plans to monetize in a tax-efficient manner to enhance the de-leveraging of its balance sheet. The separation is expected to be completed by mid-2026.
