CNN Heading to the Chopping Block? Private Equity Eyeing ‘Declining’ Network

Things are looking bleak for CNN. Once a powerhouse in cable news, the network is now riddled with layoffs, slashed salaries, and an experimental digital pivot.

But as On The Money has uncovered, private equity firms are watching closely, with some starting to crunch the numbers on a potential buyout. What once symbolized the gold standard of cable journalism is now a “wasting asset,” as one executive put it.

Private equity hasn’t bid yet, and Warner Bros Discovery (WBD), CNN’s parent company, isn’t shopping it around—yet. But the buzz in the financial world is real. CNN’s revenue forecast for this year is around $750 million, which sounds respectable until you look closer. Back in 2020, CNN pulled in over $1 billion.

That’s a serious drop, and cord-cutting is only accelerating. The shift to streaming means fewer eyes on cable, translating into plummeting ad revenues, which WBD’s latest balance sheet confirms: advertising revenues dipped from $1.7 billion in 2023’s third quarter to $1.5 billion now.

The trouble at CNN isn’t just financial. Its perceived political bias continues to alienate audiences. Decades ago, under Ted Turner, CNN made its mark as the neutral, hard-news outlet for Americans. Now, critics say it’s a megaphone for the left—a losing strategy in a shrinking market.

Liberal-leaning content might have helped CNN ride the wave of progressive enthusiasm during the Obama years, but it’s less appealing today. If left-leaning programming really had mass appeal, then Kamala Harris would be President.

Meanwhile, private equity investors are wary. Their problem? CNN’s business model is simply difficult to value. Unlike the more diverse portfolios of news rivals like Fox News or even MSNBC, CNN’s appeal relies heavily on an international news machine with sky-high overhead.

Ad revenues tied to viewership are shrinking, and private equity needs a more bankable asset than a network clinging to an aging audience.

One potential saving grace could be David Zaslav, Warner Bros Discovery’s top executive, who some say genuinely wants to revive the network. He’s brought in Mark Thompson, CNN’s CEO and a respected media strategist, whose work at The New York Times helped it succeed in the digital age.

Together, Zaslav and Thompson are hoping to cut the losses and reimagine CNN for an online audience, one that increasingly turns to independent outlets or social media for news.

It’s not just financials that might hold CNN back from an easy sale. As one executive told On The Money, the network “looks like a decent amount of money on paper,” but deeper dives into the numbers reveal a ticking clock.