Latest news with #GunnarWiedenfels
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
Mass layoffs loom at CNN as insiders reveal prominent figures at risk
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. 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 (Pictured) $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 (Pictured), 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 (pictured) 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 (pictured) 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
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.
Fox News
4 days ago
- Business
- Fox News
CNN has 'tears on the horizon' as Warner Bros. Discovery plots network spinoff, industry insiders say
CNN has "tears on the horizon" after Warner Bros. Discovery announced last week that it will split into two companies by separating its studios and streaming business from cable TV networks, according to media insiders. The corporate split, which is expected to be completed by mid-2026, will have significant ramifications for CNN, which is being treated as a declining asset that weighed down WBD's shinier businesses. A little over three years ago, Discovery Inc. merged with WarnerMedia to create Warner Bros. Discovery to much fanfare as CEO David Zaslav touted the company as "the best place for impactful storytelling." Things didn't exactly work out, and Warner Bros. Discovery CFO Gunnar Wiedenfels will lead the spun-off group of cable assets, including CNN, while Zaslav keeps the studios and streaming business. "Putting a bean counter as CEO sends a very clear message: this is finally the beginning of the long-overdue correction of the [Jeff] Zucker-era excesses," a media insider close to CNN told Fox News Digital. Indeed, former CNN boss Jeff Zucker, who was forced out ahead of the 2022 merger, was known for keeping his anchors happy with lofty salaries. The insider believes that bloated paychecks aren't justified nowadays when CNN struggles to attract a respectable audience. "It's not just the overpriced talent. It's the overpriced producers. The overpriced executives. The superfluous reporters who barely are on the air. All will either be exited or forced to take massive pay cuts," the media insider said. "But it will be most devastating for the rank and file," they continued. "With no union protections, there will be massive layoffs and those remaining will be asked to do the work of their departed colleagues." The insider added that "everyone should feel some sympathy for what's about to happen," even if you aren't a fan of the liberal network's product. CNN has hit various ratings lows in recent memory and had its second-worst month ever in the advertiser-coveted demographic of adults age 25-54 across both total day and primetime viewers in May. The network has shed viewers in all categories compared to 2024 and is on pace to have its lowest-rated year ever among the demo. CNN CEO Mark Thompson has been attempting to emphasize digital content amid the linear ratings collapse, but a second longtime media industry insider, who once worked at CNN, doesn't see the situation improving. "There's nothing but tears on the horizon for CNN," they told Fox News Digital. "They no longer have much value since it's now easier and cheaper to get video and live reports from news events, especially international events, which is their core competency. And their content — especially on — isn't good enough to charge subscriptions," they continued. "Their revenue model is in collapse, but it's a slow death. Gunnar has about ten years to squeeze every last penny out of that place before rigor mortis." CNN's shows for its domestic network are typically staffed more heavily than programs on MSNBC and other cable news channels. The second insider feels Wiedenfels could "start by making 70% cuts to all show teams for CNN US, bringing their staffing in line with that of their competition" before pivoting to talent salaries. "CNN's first- and second-tier talent now make, thanks to Jeff Zucker buying their loyalty, about five times what they're worth on the open market. All talent should be offered a choice of an immediate pay cut -- based on a market analysis of their actual value -- with a three-year contract renewal, or we pay out their remaining contract and terminate them," the insider said. "Overall, you could reduce costs at CNN 50-60% with no change to ratings or revenue, and manage the decline from there, with increasing, annual cutbacks as you wind the company down," they added. "Basically, do palliative care." A WBD insider pushed back on the doom and gloom, noting it was too early to be surmising about these sorts of plans, and rumors about cost-cutting seem to be from people who are "not informed." The same insider noted that on an investor call last week, Wiedenfels expressed excitement for the cable networks, including investment opportunities. Economist Michael Szanto is optimistic and feels that if consumers "learn to overcome extreme political polarization in a way that allows Americans to once again trust news coverage," CNN could remain relevant for years to come. "CNN is actually a gem in the WBD fold. It has a historic, iconic place for its groundbreaking coverage of the Tiananmen Square Massacre in China, the attempted Communist Coup against Gorbachev, and unrivaled coverage of the 1991 Iraq War to liberate Kuwait. For decades the voice of James Earl Jones gave CNN a very powerful voice tagline that is deeply memorable for older Americans," Szanto told Fox News Digital. Meanwhile, CNN has taken a beating in the press since the looming split was announced. Variety, a Hollywood and media trade publication, even put a spotlight on CNN's woes last week when announcing the network hired advertising executive Guy Griggs as its new senior vice president of ad sales and client partnerships. "CNN has been projected to lose both subscribers and ad revenue over the next year, according to estimates from Kagan, a research unit of S&P Global Market Intelligence. CNN's ad revenue is expected to fall to nearly $499.2 million, according to Kagan, compared with $563.9 million in 2024. News networks typically enjoy an economic boost in an election year, but the estimates for CNN would also fall from 2023's $518.1 million," Variety reported. Dylan Byers, a former CNN media reporter who now covers the industry for Puck, said he "received a deluge of text messages from addled employees at CNN" asking him what the split meant for the network. "As you may have surmised, running a 24/7 global news network with foreign bureaus is expensive, and the underlying unit economics only make sense to the people inside the building. With the industry in inexorable decline, CNN's ratings at a nadir, and younger audiences turning to user-generated schlock on YouTube and TikTok for news, those costs are increasingly hard to justify," Byers wrote in an opinion piece. "Inevitably, Gunnar will look at CNN and decide he can maintain relatively similar profits at a mere fraction of the cost," Byers continued. "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?" Byers evoked HLN, a once-prominent CNN sister network formally known as Headline News, which terminated all live programming in 2022. The comparison is essentially nightmare fuel for CNN loyalists who don't want to see the network suffer a similar fate. "Do CNN's bureaus and infrastructure make economic sense in this brave new world? Increasingly less, of course. Over time, it will look more and more like HLN, which is one reason HLN no longer exists," Byers wrote. "There will also be significant layoffs, diminished resources, and persnickety indignities: sh-ttier offices, fewer perks, and more scrutiny of the T&E." CNN did not immediately respond to a request for comment.
