CNN and the media industry as a whole were shocked when Jeff Zucker, the president of CNN, resigned this week due to a consensual relationship with a colleague. Zucker’s resignation, which comes just two months after he fired journalist Chris Cuomo, raises a few questions. Who is the owner of CNN, and who will be in charge going forward?WarnerMedia and consequently AT&T currently own CNN. However, AT&T is getting ready for a merger with Discovery that will dissolve its earlier purchase of Time Warner. After the merger, which is anticipated to close during the second quarter of 2022, the new Warner Bros Discovery company will be the owner of CNN and other media properties. CNN Heroes All-Star Tribute ceremony in December of 2021.
When will AT&T and Discovery combine?
While then-President Trump argued that the merger would give one company too much power, AT&T fought for the right to buy Time Warner. The Department of Justice filed a lawsuit to stop the merger, but in June 2018 the transaction was approved. Time Warner became WarnerMedia thanks to AT&T. AT&T is selling WarnerMedia despite facing legal issues and shelling out $85 billion to acquire Time Warner. By mid-2022, the anticipated completion of the new merger, which will cost $43 billion, will create a new content and streaming juggernaut with Discovery.
Will the merger have any effects on the shareholders?
In 2021, the plans to separate Time Warner from AT&T were revealed, and in 2022, additional information. The agreement is anticipated to assist AT&T in reducing its heavy debt burden and free up additional funds for investments in broadband internet services. After the merger, shareholders of AT&T will hold a 71 percent stake in the new Warner Bros. Discovery corporation. For each share of AT&T they currently own, they will receive 0.24 shares of Warner Bros. Discovery. CNN’s parent company WarnerMedia and Discovery are merging. Additionally, AT&T disclosed plans to reduce its dividend this year. According to Reuters, the previous dividend, which was $2.08 per share, will now be $1.11. AT&T is attempting to remain competitive. Verizon continues to be AT&T’s main competitor even after T-Mobile and Sprint merged in 2020.
Due to a mutually beneficial relationship with a coworker, CNN President Jeff Zucker resigned
At the same time that CNN is changing its position regarding the WarnerMedia and Discovery merger, the 24-hour cable news network is also going through significant leadership changes. Zucker has left the network, just two months after CNN fired Cuomo for inappropriately helping his brother Andrew Cuomo.
Donald Trump had a significant platform thanks to Zucker, who took over CNN’s leadership in 2013 and was known for chasing ratings. Trump attempted to stop the CNN and Time Warner merger as his allegiance shifted from CNN to the FOX News Network. Zucker has left CNN, citing a mutually beneficial relationship with a senior executive there who is reportedly Allison Gollust. Despite being consensual, the relationship was problematic because Zucker and Gollust failed to disclose its details to HR. Following the upcoming merger of Discovery, Zucker won’t have his anticipated position within the organisation.
