CNN faces uncertain times following Warner Bros. Discovery’s announcement last week that it will split into two separate companies by separating its studios and streaming operations from its cable TV networks, according to media insiders.
The corporate division, expected to be finalized by mid-2026, will have major implications for CNN, which is reportedly viewed as a declining asset dragging down Warner Bros. Discovery’s more profitable businesses, insiders told Fox News.
Just over three years ago, Discovery Inc. merged with WarnerMedia to form Warner Bros. Discovery amid much fanfare, with CEO David Zaslav praising the company as “the best place for impactful storytelling.” However, the venture did not unfold as planned. Under the new structure, Warner Bros. Discovery CFO Gunnar Wiedenfels will oversee the spun-off cable assets, including CNN, while Zaslav retains control of the studios and streaming divisions.
“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,” one media insider close to CNN told Fox News.
Former CNN chief Jeff Zucker, who was ousted prior to the 2022 merger, was known for maintaining high salaries to keep his anchors satisfied. However, insiders now argue that such inflated paychecks are no longer justifiable given CNN’s ongoing challenges in attracting a substantial 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 also told Fox that “everyone should feel some sympathy for what’s about to happen,” even if they aren’t fans of the left-leaning network.
CNN has experienced a series of ratings lows recently, recording its second-worst month ever in May among the key advertiser demographic of adults aged 25-54, both during total day and primetime viewing. The network has lost viewers across all categories compared to 2024 and is on track to post its lowest ratings ever within this demographic, Fox added.
CNN CEO Mark Thompson has focused on boosting digital content in response to the steep decline in traditional TV ratings. However, a second longtime media industry insider with previous experience at CNN remains skeptical that the situation will improve.
“There’s nothing but tears on the horizon for CNN,” the person told Fox News.
“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 CNN.com — isn’t good enough to charge subscriptions,” the second source 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 typically staffs its domestic network shows more heavily than MSNBC and other cable news channels. The second insider feels Wiedenfels should “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.”