U.S. media giant Warner Bros. Discovery is considering selling its media asset, including CNN. The company, which owns CNN and HBO, recently released a restructuring plan to split the entertainment institutional sector from the news and sports institutional sector and is said to have received multiple acquisition offers.
On the 21st (local time), according to the Washington Post and other foreign media, the most likely buyer is Skydance Media Chief Executive Officer (CEO) David Ellison, who acquired Paramount. Ellison is reportedly envisioning a "news integration platform" that would bring CNN and CBS under one roof. He recently invested $150 million to acquire the conservative-leaning outlet "Free Press," and brought in founder Bari Weiss as CBS News editor-in-chief. Paramount declined to comment on whether it would bid.
Warner Bros. Discovery CEO David Zaslav said, "Corporations in the market are valuing our portfolio highly," and noted that the company is "reviewing strategic alternatives to maximize asset value." The company added that, in addition to its streaming and sports asset, there had also been "unsolicited bids" for the entire business.
The company plans to split the business into two by 2026. One is the entertainment institutional sector, including HBO, HBO Max, and Warner Bros. Studios, and the other is the news and Live Up to Your Name TV institutional sector, including CNN, TNT Sports, and Discovery Channel. CNN has recently struggled with falling ratings and weak streaming performance, and cut 6% of its total workforce in January.
Industry watchers analyzed that as the profitability of cable asset including CNN declines, investors are demanding a separation from the streaming institutional sector. Dave Heger, an analyst at U.S. securities firm Edward Jones, assessed, "The cable-centric revenue structure is weighing on investor sentiment and the share price."
Another potential bidder mentioned is Comcast, which owns NBCUniversal. Mike Proulx, vice president at research firm Forrester Research, said, "This sale could accelerate the reshaping of the media market," and pointed out, "If large corporations like Skydance expand their market share, concerns over content diversity and freedom of expression could grow."
He added, "Economies of scale may benefit shareholders, but it is uncertain whether consumers will gain from better quality and lower prices," and "the direction of this sale and the buyer will determine the balance of the media industry going forward."
Experts see the sale talks as symbolizing not just one corporations' restructuring, but a broader reshaping of the U.S. media industry. As competition intensifies between traditional broadcasting and streaming, the value of cable channels that have lagged in the digital transition is rapidly declining. CNN, too, has struggled with falling ratings and declining advertising revenue, placing it at the center of a profitability debate within Warner Bros. Discovery.
In particular, the market is also watching the possibility that the sale could spark political controversy. If Paramount, which owns CBS, acquires CNN, two major news networks in the United States would be incorporated under one conglomerate group. This is why concerns are being raised about reduced media diversity and impaired editorial independence. On the other hand, some argue a realistic view that "cost savings through integration and strengthened streaming competitiveness are an inevitable choice."