CNN staffers are reportedly loathing a potential merger with Netflix, but don't expect the Ellisons to kill the news agency. The word on the street is that staffers are thrilled about the potential deal, as they fear the Trump-friendly owners, Larry and David Ellison, would kill the network once they get their hands on it. However, the likely scenario under the Netflix deal is far worse for the CNN rank-and-file: The cable channel, which still generates cash, will be spun off as part of a public company answering to public shareholders. This is concerning, given the debt on its balance sheet and the pressure to show a profit. Even more alarming, Wall Street executives say the network will ultimately be spun out and sold to a rapacious private equity firm that sees news as a nuisance, opting to slash and burn to generate ever-bigger profits. This could spell disaster for CNN's future. But here's where it gets controversial: The Ellisons are offering something unique. Unlike Netflix, they're buying not just the streaming and studio business, but the cable properties as well. This means CNN could be part of a global, integrated media empire that sells both CNN and CBS in cable packages. CNN staffers are said to particularly loathe the idea of working for Bari Weiss, who runs CBS for the Ellisons and has moved the Tiffany Network to a more friendly posture to conservatives. However, Weiss is hardly channeling hard-line MAGA at CBS, and the Ellisons' partner in the pursuit of WBD, RedBird Capital, is run by savvy veteran media banker Gerry Cardinale. He employs a handful of journalists, including former CNN anchor Chris Wallace and longtime CNN chief Jeff Zucker. So, while there are concerns about the Ellisons' political motives, it's unlikely they'll be Trump patsies. In fact, it's CBS that could be moving its news-gathering operations to CNN's Atlanta headquarters. This makes sense, given the numbers of both networks. CNN churns out an estimated $500 million to $600 million in annual cash flow, which is pretty darn good considering its third-place ratings among the cable news giants. However, the future of CNN is uncertain, and the cuts and synergies that bankers talk about could be steep. No matter how much shade is thrown at Larry Ellison's backstop of his son's hostile offer for Warner Bros. Discovery, the Oracle co-founder is still worth more than $240 billion and will use it to invest in a business where CNN won't be a nuisance but the tip of the spear in Paramount's news operations. So, while there's lots of paranoia surrounding the merger, it's important to remember that journalism is a tough business, and CNN needs to survive for the sake of a functioning democracy. But this is the part most people miss: The real controversy lies in the potential sale of CNN to a private equity firm, which could spell disaster for the network's future.
