CBS News is reportedly grappling with annual losses amounting to approximately $50 million, a financial predicament that has prompted incoming CEO David Ellison to consider significant budgetary adjustments.
This revelation, as reported by Puck's Dylan Byers, is based on insights from two individuals familiar with the financial state of the news division. Ellison, who recently took the helm of CBS's parent company, Paramount, through his leadership at Skydance Media, appears disinclined to invest in CBS's expansion. Byers notes that Ellison is "certainly not going to tolerate those losses."
According to The Washington Free Beacon, Ellison's strategy involves "right-sizing" CBS News by reducing talent salaries, forming smaller teams with tighter budgets, and potentially utilizing evergreen content from 60 Minutes on Paramount+. Additionally, there is speculation about bringing Bari Weiss into the fold to introduce fresh perspectives.
The financial woes of CBS are particularly striking in light of Paramount's recent decision to cancel The Late Show with Stephen Colbert, which was reportedly costing the company $40 million annually. Despite backlash from left-leaning staff and hosts, the cancellation was defended as a purely financial decision.
In a related development, CBS and Paramount recently settled a lawsuit filed by President Donald Trump for $16 million. The lawsuit alleged that 60 Minutes had deceptively edited footage to portray Kamala Harris more favorably during her presidential campaign.
President Trump has also alluded to a "side deal" that purportedly involves CBS airing millions of dollars in free conservative advertising and public service announcements under Skydance's ownership. While Paramount's board has denied such an arrangement, Skydance has not explicitly refuted these claims, leaving room for speculation.
The report by Byers coincides with a series of interviews published by the New York Times featuring former Paramount chairwoman Shari Redstone. Redstone acknowledged the need for greater balance at CBS, expressing hope that President Trump might achieve what she could not in terms of addressing the network's perceived partisan bias.
Redstone has been vocal in her criticism of CBS's anti-Israel stance, particularly in response to a January 60 Minutes segment that relied on sources linked to the Council on American-Islamic Relations, whose executive director has praised Hamas. This ongoing discourse underscores the broader challenges faced by CBS as it navigates financial and ideological pressures.
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