CNN employees reacted with alarm after Netflix abruptly pulled out of a bidding war for Warner Bros. Discovery, effectively clearing the way for the acquisition of the 24/7 cable channel by media giant Paramount Skydance, run by tech heir David Ellison.
Seven current CNN employees who spoke with NBC News Thursday night, hours after Netflix announced it would not try to match Paramount’s bid for WBD, expressed a combination of fear and concern. He described the mood within the company as “shaken” and “depressed”.
Paramount’s offer, which was formally signed off on by WBD’s board on Friday afternoon, still needs to go through Justice Department regulators. Democratic politicians and California’s attorney general have said they will watch the deal closely.
But if approved, Ellison — the son of Oracle technology mogul Larry Ellison, a close ally of President Donald Trump — stands to control two of the main pillars of traditional news media: CNN and CBS News, “60 Minutes.”
A CNN journalist who regularly appears on the air described Netflix’s withdrawal as “shocking.” Journalists said they believed some staffers would walk away if faced with the prospect of working for David Ellison or CBS News editor-in-chief Barry Weiss, whom Ellison hired to “reinvigorate” the storied network news division.
“No one wants to work for the Ellisons,” said the man. “And if Barry is running CNN, expect people to leave.”
A CNN spokesman declined to comment but pointed NBC News to a memo sent to the newsroom Thursday by CNN CEO Mark Thompson.
“Despite all the speculation you’ve read during this process, I suggest not jumping to conclusions about the future until we know more,” Thompson wrote. “And secondly we mustn’t forget our duty to our audience. We’re already nearing the start of an incredibly newsworthy year at home and abroad, culminating with crucial US midterm elections and who knows what else. Let’s focus on delivering the best journalism possible to the millions of people who rely on us around the world.”
Paramount and CBS did not immediately respond to requests for comment.
CBS News has come under particular scrutiny under Weiss’ leadership. He also drew criticism for last-minute mounting a “60 Minutes” segment surrounding the treatment of Venezuelan deportees, which eventually aired weeks later. Public outcry followed some personnel decisions, including the decision to bring in new contributors.
One CNN anchor said most of the company hoped Netflix would win the bidding war, but one CNN executive said he was worried whether Paramount would look to make deep cuts to the newsroom.
Employees asked to withhold their names so they could speak candidly about the inner workings of the company. In December, CNN staffers received a memo instructing them not to speak publicly about anything related to the situation at their parent company.
Paramount’s bid for WBD is for the entire company, including the legendary film studio, HBO, the HBO Max streaming platform and a suite of cable channels that includes CNN. Netflix is looking to acquire only WBD’s studio and streaming units, pending spinning off the cable portfolio as a separate entity.
It was not immediately clear whether David Ellison would combine CNN and CBS News into a single news organization or operate them as separate entities. But the root cause of concern among staff centers on the Ellison family’s collective control. Some experts have echoed those worries.
“It can’t be overstated, the potential impact this can have when it undermines credible news coverage,” J Christopher Hamilton, an entertainment attorney and professor at Syracuse University, told NBC News on Friday.
“My students are already scrutinized in terms of their trust in heritage — whether it’s governments or institutions like media houses,” he continued. “I don’t know what the world will be like when our institutions that have protected and guided us for centuries become institutions that we no longer trust.”
Those concerns have only been amplified within the Trump era, where free speech has become a front-and-center debate in political watchdog organizations and the mainstream news media.
“The president is very closely involved in individual enforcement decisions,” Reilly Steele, an assistant professor at Columbia Law School, told NBC News. “We see President Trump trying to get the DOJ after specific individuals.”
Former CNN White House correspondent Jim Acosta underscored those sentiments in a post to X, writing Thursday, “As I warned, America now has a state-compromised media.”
“When 60 Minutes or CNN is in trouble, we’re all in trouble,” Acosta continued. “Trump has cracked the code on how to hurt the press. Free speech is now at risk. MAGA corporations should not control the news. Independent media should be supported.”
Ron Filipkowski, editor-in-chief of the progressive media organization MeidasTouch, added in a separate post that “this is the end of CNN.”
In recent years, CNN’s ratings have declined as overall viewership for broadcast and cable television has declined. Traditional news media are facing growing competition from digital platforms like TikTok and potential economic disruptions related to AI.
In a town hall with employees early Friday, Warner Bros. Discovery CEO David Zaslau addressed the latest developments, albeit briefly. A CNN journalist who listened said Zaslav struck an optimistic tone but did not take questions. The meeting was “filled with platitudes and broad gestures,” the employee added.
Despite frustrations within the newsroom, Hamilton advised workers and journalists who were part of these storied institutions not to back down.
“If (journalists) withdraw from these organizations no matter how uncomfortable or how intolerable it is, then we have no hope,” Hamilton said. “Stay the course. Be the reasonable person in the room – even if you’re the only one.”
