CNN: Bracing for Cost Cuts Under New Leadership with Spin-Off
Deal News | Jun 09, 2025 | EIN
Warner Bros. Discovery (WBD) has revealed plans to spin off its cable business, including CNN, into a new entity, Global Networks, by 2026. Gunnar Wiedenfels, known for aggressive cost-cutting, will lead Global Networks, signaling potential further layoffs at CNN, which is already struggling with ratings and revenue declines. The separation aims to give both WBD's streaming/studio and cable entities increased flexibility. This strategy mirrors approaches by other media companies like Comcast, which is restructuring its cable business. As CNN faces diminishing viewership and financial uncertainty, focus shifts to Wiedenfels' potential moves to maximize remaining profitability, likely involving further cost reductions.
Sectors
- Media and Entertainment
- Broadcasting
Geography
- United States – The article is set within the United States, involving major American media entities such as Warner Bros. Discovery and CNN.
Industry
- Media and Entertainment – The article discusses the spin-off of CNN by Warner Bros. Discovery, a major entity in the media and entertainment industry. This industry is relevant as it concerns the distribution of television content and streaming services.
- Broadcasting – CNN and other cable networks involved in this restructuring fall under the broadcasting industry, especially as they face challenges from streaming services.
Financials
- $3 billion – Cost cuts targeted by Gunnar Wiedenfels during his tenure at WBD.
- $1 billion – Savings achieved during the acquisition of Scripps, exceeding expectations of $350 million.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| CNN | Target Company | Company | CNN is part of the cable business being spun off by Warner Bros. Discovery. |
| Warner Bros. Discovery (WBD) | Selling Company | Company | Warner Bros. Discovery is spinning off its cable business including CNN. |
| Gunnar Wiedenfels | Leader of Global Networks | Person | Chief Financial Officer of Warner Bros. Discovery, known for cost-cutting, appointed to lead the new entity Global Networks. |
| David Zaslav | Chief Executive of WBD | Person | CEO of Warner Bros. Discovery, overseeing the spin-off strategy. |
| Global Networks | Bidding Company | Company | The new temporary entity created to hold the spun-off cable assets including CNN. |