Staff at CNN are reportedly gripped by fear and anxiety as Paramount's CEO David Ellison, known for his friendly ties to former President Donald Trump, appears set to take control of the network's parent company, Warner Bros. Discovery. This follows Netflix's withdrawal from a bidding war, leaving Ellison's $111 billion offer unchallenged and paving the way for a major media shake-up.
Netflix Withdrawal Sparks Panic in Newsrooms
According to sources, panic reverberated across CNN's newsroom on Thursday after Netflix announced that its pursuit of Warner Bros. Discovery was no longer financially attractive. Netflix had proposed a $27.75-per-share bid, aiming to acquire Warner Bros. movie studios and spin off CNN into a separate entity. However, this plan was abandoned, allowing Paramount's $31-per-share offer, amounting to $111 billion, to proceed without a counter.
Ellison's intentions for CNN remain unclear, but his and his father Larry Ellison's connections to the Trump administration have heightened concerns. The Trump administration approved the Ellisons' acquisition of Paramount last year, and insiders report that Trump advisors celebrated Netflix's withdrawal as a victory.
Staff Reactions and Fears of Cuts
Employees at both CNN and CBS News, which is also under Paramount's umbrella, are reportedly panicked at the prospect of the two networks coming under the same roof. One CBS producer expressed frustration with expletives, stating they were not authorized to speak to the media, while another staffer echoed similar sentiments. Sources indicate that the merger would likely lead to significant cuts on both sides, exacerbating anxieties.
At CNN, staffers are particularly fearful of coming under the control of Bari Weiss, a right-leaning figure appointed by Ellison to lead CBS News in October. Weiss, known as a fierce critic of legacy news, is expected to be a disruptor. A CNN staffer lamented that the company has lost credibility as stewards of a news brand in recent months due to changes at CBS News under Weiss.
Ellison Family Influence and Programming Changes
Larry Ellison, the billionaire father of David Ellison and a well-known GOP donor, has reportedly floated ideas that add to the unease. Sources told the Guardian that in November, he suggested firing some of CNN's top talent, such as anchors Erin Burnett and Brianna Keila, because they are not favored by Donald Trump. He also pondered programming changes, including airing CBS News's flagship program 60 Minutes on CNN.
David Ellison, a 43-year-old former Hollywood producer, entered an unknown bid for the entire Warner Bros. Discovery portfolio, including CNN, last year. The Ellisons were the only bidders interested in acquiring the company in its entirety, as CNN has struggled, shedding nearly two-thirds of its primetime viewers since 2016.
Industry Implications and Future Outlook
A Netflix acquisition would have seen CNN spun off alongside Warner's other declining cable assets into a new company, similar to previous separations in the industry. Instead, a Paramount-Warner Bros. Discovery merger is viewed by many as a disaster for employees. One frightened CNN producer told the Guardian that if Bari Weiss takes control of CNN, it could mark the end of the global network founded by Ted Turner.
Donald Trump has previously criticized Warner Bros. Discovery and CNN, stating in December that he believes CNN should be sold along with everything else, calling its leadership dishonest. As the deal moves forward, the future of CNN under Ellison's leadership remains uncertain, with staffers bracing for potential upheaval and conservative shifts in editorial direction.
