"There was some relief at CNN with last Friday's announcement that Netflix was buying Warner's studio and streaming businesses, since the cable network would not be a part of that deal. But that quickly changed on Monday with Paramount's announced bid, which includes the cable assets that Netflix doesn't want and, if successful, opens the possibility of a combined CNN and CBS News."
"Paramount's bid, which must be approved by shareholders and regulators, could be seen favorably by President Donald Trump, who is closely allied with Paramount Skydance chairman and CEO David Ellison as well as his father, Oracle founder Larry Ellison. But Trump has already expressed anger at the company on social media for Sunday's "60 Minutes" report on former U.S. Rep. Marjorie Taylor Greene."
"Prior to Friday's announcement, Warner Bros. Discovery had said it planned to spin off its cable television networks including CNN, Discovery, HGTV, the Food Network and TLC, into a separate company. The growth of streaming has made cable networks an unattractive business. CNN's television ratings have tumbled to the extent that it is firmly the third-rated cable news network behind Fox News Channel and MS NOW, formerly MSNBC"
Paramount Skydance's hostile takeover bid for Warner Bros. Discovery has placed CNN and its sister cable networks into extended management limbo. Netflix agreed to buy Warner's studio and streaming businesses, but Paramount's bid includes the cable assets Netflix rejected, raising the possibility of combining CNN with CBS News. Management uncertainty compounds existing challenges after Ted Turner's era, increasing staff anxiety. Paramount's bid could gain favorable views from President Trump because of ties to David and Larry Ellison, though Trump criticized the company over a "60 Minutes" report. Warner had planned to spin off cable networks as streaming growth hollowed out cable economics, and CNN's ratings have fallen to third place.
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