AceShowbiz - Fears are mounting among staffers at CNN following the recent decision by parent company Warner Bros. Discovery to scrap a planned sale of its streaming and studio assets to Netflix, opting instead to package the entire company for acquisition by Paramount Skydance. According to three individuals familiar with the network, this shift has generated significant anxiety among employees who worry that the new ownership could negatively impact CNN's journalistic independence and financial stability.

The mood among CNN staff is described as "devastated," with one insider saying, "No one is happy." Another source confirms a palpable sense of dread within the newsroom, reflecting deep concerns about the future of their work environment and editorial direction under Paramount’s leadership.

Last Thursday, Netflix announced it would walk away from its agreement with Warner Bros. Discovery after Paramount submitted a revised offer deemed by Warner CEO David Zaslav as "superior." In an investor call, Zaslav emphasized that a "rigorous" process was undertaken to maximize value across Warner’s portfolio, which includes [strong]CNN[/strong], HBO Max, TNT, and Food Network.

However, this change of course has introduced a new period of uncertainty for CNN, a network that has already endured multiple upheavals. Employees have persevered through a sale to AT&T, two contentious terms under former President Trump, a Biden administration that frequently avoided press interaction, and finally the sale to Discovery. These transitions brought numerous leadership changes, several rounds of layoffs, and a growing emphasis on digital audiences.

Paramount’s approach to journalism, particularly its perceived closeness to the Trump administration, has raised red flags among analysts and staff alike. Blair Levin, an analyst at New Street Research, warned that Paramount Skydance’s media assets, including broadcast licenses, are vulnerable to government influence in ways that streaming services like Netflix are not. Levin noted that talent may view the new parent company as willing to adjust news coverage to appease political powers, potentially compromising editorial integrity.

Interestingly, the idea of combining CBS News and CNN has been floated previously, but Warner and CBS have refrained from such moves due in part to union considerations at CBS News. Recently, CBS News itself has faced challenges. Bari Weiss, who was recruited to lead editorial operations at CBS News after selling her conservative outlet Free Press to Paramount for $150 million, has been a controversial figure. Her tenure has seen a shift toward digital audiences despite the stronger advertising revenue from CBS’s traditional TV properties.

Staff at CBS News have voiced concerns about editorial direction, worrying that stories may be shaped to fit a predetermined narrative. This unrest was underscored by the announcement from [strong]Anderson Cooper[/strong], a longtime correspondent for "60 Minutes," that he plans to leave the program after two decades — a move seen as a critique of current leadership. "60 Minutes," a flagship show for CBS, has suffered from management missteps that have drawn unwanted attention.

Other CBS News programs have also struggled. The "CBS Evening News," under new anchor Tony Dokoupil since January, has seen its viewership decline after an initial increase. Last week, the program averaged approximately 4.17 million viewers, consistent with Dokoupil’s first week but down 10% compared to the same period last year. "CBS Mornings" is facing similar challenges, with viewership averaging 1.71 million last week, a 14% drop from the previous year.

Meanwhile, the business outlook for CNN itself has weakened. The network experienced a surge under former CEO Jeff Zucker but has since lost viewers and influence amid efforts by subsequent management teams to moderate some of its more outspoken personalities and content. According to a January SEC filing by Warner Bros. Discovery, CNN is projected to generate an adjusted operating profit of around $600 million, a sharp decline from the $1 billion profit achieved during Zucker’s tenure.

Under Zucker, CNN adopted a more crusading journalistic tone that helped boost viewership. However, Warner’s current CEO, David Zaslav, and his chosen chief, Chris Licht, have sought to tone down this approach and attract more conservative viewers, competing with Fox News Channel. These efforts have produced underwhelming results. High-profile departures, including [strong]Don Lemon[/strong] and Poppy Harlow, have occurred amid primetime overhauls and the launch of a new morning show that has yet to gain significant traction.

Looking forward, Warner anticipates CNN’s revenue will reach $1.8 billion by 2026, with projected annual increases of $100 million over the following four years, aiming for $2.2 billion by 2030. This growth depends heavily on the success of CNN’s subscription service, CNN All Access, which is priced at $6.99 per month. The streaming market is highly competitive, with established rivals such as NBC News, Fox News Channel, ABC News, CBS News, and numerous independent digital creators also vying for viewers and subscribers.

In fact, core advertising revenue for CNN is expected to decline between 2026 and 2030 at a compound annual growth rate of -4%. The subscription service is projected to generate $600 million in revenue by 2030, a critical component of CNN’s financial future.

In response to the turmoil, CNN’s leadership has urged staff to remain composed. Mark Thompson, CEO of Warner Bros. Discovery, sent a memo Thursday evening encouraging employees not to jump to conclusions amid speculation, emphasizing the importance of continuing to deliver high-quality journalism to millions of viewers worldwide.

Nevertheless, concerns persist within CNN that the new Paramount ownership could distract from the network’s mission. Staffers worry that editorial independence may be compromised and that the network’s financial health could suffer under a parent company that has demonstrated instability in managing its journalism assets, as seen in Paramount’s handling of CBS News.

As the deal progresses, the future of [strong]CNN[/strong> remains uncertain, with employees hoping to preserve the network’s journalistic standards amid a rapidly changing media landscape and shifting corporate priorities.