Warner Bros. Discovery, the parent company of CNN, has unveiled plans to divide into two distinct publicly traded entities.
This strategic move will separate CNN from the more lucrative streaming sector, as the network contends with a significant decline in viewership. The reorganization will result in one company dedicated to streaming and studio productions, encompassing HBO, Warner Bros. Pictures, and DC Studios.
Meanwhile, the second entity, WBD Global Networks, will encompass CNN, TNT Sports, Discovery, and other cable channels. According to Axios, CEO David Zaslav will oversee the streaming division, while CFO Gunnar Wiedenfels will manage the networks group.
As reported by The Washington Free Beacon, the impact of this division on CNN's own streaming platform remains uncertain. This platform was announced last month, following a previous $300 million streaming venture that ended disastrously three years ago. CNN's financial health and ratings have been on a downward trajectory in recent years.
The network's revenue has plummeted by approximately $400 million over three years, as disclosed during a defamation trial in January. Primetime ratings have nosedived by 62 percent since 2020, with total-day viewership decreasing by 58 percent overall and 71 percent among the crucial 2554 demographic.
CNN is not alone in facing such corporate restructuring. In a similar vein, MSNBC's parent company, Comcast, declared in November its intention to spin off the network into a new entity, distancing itself from MSNBC and other underperforming television assets.
Like CNN, MSNBC has experienced dwindling ratings and increased scrutiny over its partisan coverage. The network recently lost even more viewers after revamping its primetime lineup to feature former Biden White House press secretary Jen Psaki.
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