Report: Warner Bros. Discovery Mulling Sale of CNN; Is Zaslav Selling Company for Parts?
It’s not every day that one of the biggest brands in news is put up for sale, but Warner Bros. Discovery might be preparing to do just that. The New York Post reports that WBD might put CNN on the market amidst low ratings and tumbling advertising revenue.
Issues at CNN pre-date the takeover of former CEO Chris Licht, whose attempts to steer the channel toward a more politically centrist message were guided by WBD head David Zaslav. Those efforts included hosting a town hall meeting with former President Donald Trump, an event that quickly turned into a press disaster for CNN. Licht was let go shortly thereafter earlier this month.
Former CNN chief Jeff Zucker could be a potential bidder for the channel if it does go up for sale. Zucker resigned in 2022 after it was discovered that he had carried on an undisclosed romantic relationship with a subordinate. A source close to WBD told The Post that the company remains “committed” to CNN, but insiders also say Zaslav is assessing the damage done during the Licht era, and that audiences should keep an eye on 2024 as a possible sale date.
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“I could see a sale next year. They see CNN as a non-core asset,” an industry insider said of Warner Bros. Discovery. “Once Warner reduces its leverage, it will be more willing to sell non-core assets including CNN.”
It appears at least one asset WBD considers “non-core” won’t have to wait that long to be sold. A separate report from Variety indicates that the company is looking to sell something less than half of its music catalog, with an asking price of $500 million. Content for sale includes soundtracks to movies like “Sweeny Todd,” “Purple Rain,” “Casablanca,” “Batman,” and other well-known titles.
It’s hard not to wonder if these moves are being made to prepare the entirety of WBD for sale. Selling off non-core assets is a good way to streamline a company and make it more attractive to potential buyers. WBD is reportedly a potential target for Comcast, which could be looking to acquire more assets after it gets an infusion of cash from Disney in exchange for its 33% of Hulu. WBD can’t be part of any mergers or acquisitions until spring 2024, due to the complicated structure of the integration of WarnerMedia with Discovery last year; there is a two-year regulatory cooling off period following such moves.
Despite its recent troubles, CNN is still a valuable and profitable asset for WBD. The company has discussed potentially putting content from CNN on its streaming platform Max, though it says it wants to wait a bit longer to start using the platform for live news and sports.
Still, if Zaslav sees an opportunity to help his company’s bottom line, he’ll take it. Audiences shouldn’t be shocked if CNN is sold to the highest bidder in the next year, and if it is it could well be an indication that an outright sale of WBD isn’t far behind.
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