How CNN might find its way to the auction block

By Free Republic | Created at 2024-11-16 01:30:51 | Updated at 2024-11-23 15:13:58 1 week ago

How CNN might find its way to the auction block
NY Post ^ | 11/15/24 | Charles Gasparino

Posted on 11/15/2024 5:13:55 PM PST by Libloather

Things might look gloomy at CNN with layoffs, salary cuts and a new digital programming model that may or may not work. But On The Money has learned that private equity firms have been crunching the numbers on a possible acquisition of the ratings-challenged network.

Don’t exactly hold your breath for anything happening soon, my sources both at CNN and in the private equity business tell me. The network’s parent, Warner Bros Discovery, isn’t yet shopping CNN.

Indeed, no firm has made a bid, my sources tell me: the PE people I spoke to don’t really know how to really value the thing because of its troubled business model.

That said, I know of at least one major PE firm (and likely more) that has crunched the numbers. Analysts believe CNN makes what looks like a decent amount of money, around $750 million this year. Sounds good until you realize that’s down from over $1 billion in 2020; cord cutting is taking its toll as people stop watching cable news, meaning declining cable fees. CNN is an international news operation so it has high overhead.

When people cut the cord you can’t charge as much for ads. WBD’s balance sheet says ad revenues are down to $1.5 billion for the third quarter, compared to $1.7 billion for the quarter in 2023.

Another issue: PE executives also believe the programming still veers too much to the left, where there is a dwindling consumer market or Kamala Harris would have been elected president.

As one executive at a top PE firm told On The Money: “Yes lots of sniffing but people think it’s a wasting asset.”

(Excerpt) Read more at nypost.com ...

TOPICS: Business/Economy; Conspiracy; Local News; TV/Movies
KEYWORDS: auction; broke; cnn; tv

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Just bring back Bobbie Battista.

1 posted on 11/15/2024 5:13:55 PM PST by Libloather

To: Libloather

2 posted on 11/15/2024 5:17:55 PM PST by Gary from Dayton (Army Vet 1986-1991 unburdened by what I was burdened by before.)

To: Libloather

Hey Onion. Here’s you a network to buy. And it’s made easy for ya: they’re already a joke.

To: Libloather

If everyone cut the cord and stopped paying the carriage fees, CNN would cease to exist (as would many other cable networks). Their ratings are too poor to sustain anything like their present overhead from ad revenue.

WBD knows it’s on a slippery slope running in the wrong direction. Their best option is to sell it soonest to maximize the value that some saps stuck in the past might be willing to pay for it.

4 posted on 11/15/2024 5:25:05 PM PST by bigbob (Yes. We ARE going back!)

To: Libloather

Lynne Russell on Headline News was one of my favourites.

5 posted on 11/15/2024 5:25:53 PM PST by OttawaFreeper ("The Gardens was founded by men-sportsmen-who fought for their country" Conn Smythe, 1966 )

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