CNN could be put up for sale — and ex-CEO Jeff Zucker wants it, sources say
Speculation is growing that Warner Bros. Discovery will sell CNN in the coming year — and the struggling cable network’s former CEO Jeff Zucker has emerged as a possible suitor, sources told The Post.
The 58-year-old Zucker is among the contenders to buy the ratings-challenged network, insiders say — despite the fact that he was ousted from the company more than a year and a half ago over his undisclosed relationship with former CNN flack Allison Gollust.
Sources say Zucker sees a big opportunity at CNN ahead of the 2024 presidential election after ex-CEO Chris Licht’s strategy to revamp the network’s programming to appeal to a more centrist audience flopped, sending ratings and ad revenue tumbling.
“Jeff is likely going to make a bid this fall to purchase,” said a source with knowledge.
People who know Zucker add that buying and running CNN again would be the exec’s “ultimate revenge” after his untimely exit from the network early last year, in which he was also accused of overly cozy ties with disgraced former New York Gov. Andrew Cuomo.
“I wouldn’t count Zucker out,” said a friend of the exec, noting that the seasoned TV mogul “holds a grudge” and will find a way to “be back on top.”
Nevertheless, insiders say it’s also not clear what’s going on inside the head of Warner Bros. Discovery CEO David Zaslav, who has taken responsibility for Licht’s push of CNN toward the center of US politics — a controversial pivot that also had the backing of billionaire board member John Malone.
Indeed, a possible scenario could be that Zaslav decides to keep CNN while shopping for still other news networks.
One possible deal recently floated in media circles involves a merger between NBCUniversal parent Comcast and Paramount.
The two companies reportedly had been in talks in 2021.
If that merger happens sooner or later, Comcast would likely be forced to get rid of CBS News due to antitrust violations.
Warner Bros Discovery, in turn, might then swoop in and combine CNN with CBS, seeking to reap efficiencies between the two networks under its umbrella, some insiders have speculated.
A spokesman for Warner Bros. Discovery declined to comment.
A source close to the company said it remains “dedicated” to CNN.
CNN — which bankers estimate could fetch between $5 billion and $6 billion in a sale — needs to be “absorbed” by a media conglomerate that already owns a swath of cable channels, one well-placed media investor told The Post.
The idea is to reap cost savings and add negotiating clout with cable providers.
“All the speculation is Jeff putting himself in the news cycle,” the source said of Zucker. “A big company would need to find synergies and savings.”
Sources close to Zucker, however, said the media exec might be interested in acquiring CBS, too.
Zucker is now CEO of RedBird IMI, a joint venture that includes RedBird Capital Partners and Abu Dhabi-based International Media Investments.
The firm’s fund has $1 billion in capital, but sources with knowledge said Abu Dhabi is willing to put in billions more to fund the right deal.
When asked about the exec’s intentions on buying CNN, a source familiar with Zucker’s thinking downplayed the possibility, telling The Post: “It is not on his agenda, but he said he’d look at all media assets and CNN is not an exception.”
At the same time, it appears that Zaslav is assessing the damage left by Licht with the help of chief operating officer David Leavy and editorial veterans Amy Entelis, Virginia Moseley and Eric Sherling — and holding off putting the network on the block, sources with knowledge said.
“I talked to bankers in the last six months and Warner Bros. Discovery is not selling,” one media investor said. “Nothing is going to happen in the short term.”
But an industry insider who works on large media mergers said Zaslav’s quick decision to dismiss the embattled Licht after just over a year of service is a “sign it is readying the cable news network for a sale.”
That is because CNN needs to show stability to attract a buyer, the source added.
In May, CNN’s ratings cratered 25% in primetime compared to the prior year.
According to the New York Times, CNN brought in roughly $750 million in profit last year, down from the $1.25 billion it brought in the previous year.
Meanwhile, Warner Bros. Discovery has been laying off workers and slashing spending on content as it looks to reduce a $50 billion debt pile.
That could pave the way for a CNN sale sometime in 2024, according to sources.
“I could see a sale next year. They see CNN as a non-core asset,” an industry insider said of Warner Bros. Discovery. “Once Warner reduces its leverage, it will be more willing to sell non-core assets including CNN.”
The source pointed to Zaslav’s focus on growing the company’s core entertainment assets, which include HBO Max, the Discovery Channel and the Warner Bros. movie studio.
Edward Jones analyst David Heger adds that while CNN helps Warner Bros. Discovery to sell its networks in a package to cable networks, the company’s Food Network and HGTV appeal to women and are considered must-haves.
“I don’t know if CNN has to be a core business to Warner Discovery,” Heger told The Post. “I certainly see at this juncture if they don’t find the right leader for CNN, an alternative might be to sell it to someone else.”
