CNN faces October takeover as Paramount seals $110bn Warner deal

CNN is set to change owners in October, as Paramount Skydance pushes to close its $110 billion purchase of Warner Bros. Discovery after settling a legal fight that had threatened to block it. The settlement with California and 11 other states removes the last major state challenge to a deal that puts CNN, HBO and Warner's other brands under one roof Reuters.

Staff are braced. Mark Thompson, chairman and CEO of CNN, told staffers they would hear more about what the Paramount deal means for the channel, including the date of close, over the coming days. One person familiar with CNN's operation described the mood inside as "like a funeral" Variety.

The numbers explain part of the tension. Warner Bros. Discovery projected in a U.S. Securities and Exchange Commission filing earlier this year that CNN will generate $600 million in profit in 2026 on $1.8 billion in revenue. CNN has also launched "CNN All Access", a subscription service where it has been testing new programming formats.

This is CNN's second handover in four years. Warner Bros. Discovery took control of CNN in 2022 and quickly scuttled the CNN+ streaming product. Warner Bros. Discovery shareholders cleared the way in April for CNN, HBO and Warner's other media brands to join Paramount Skydance later this year, after Paramount supplanted Netflix as the acquirer.

Money is now ticking. Paramount is obligated to pay a $7 million per day ticking fee, meaning a daily payment for delay, to Warner Bros. shareholders for each day after 30 September until the deal closes Reuters. That October target follows an earlier agreement reported in the summer to hold the merger until as late as July 2027. Opponents of the merger reacted with alarm and dismay to news of the settlement The Hollywood Reporter.

Jobs are the other fault line. The merger has raised concerns about massive job losses for Los Angeles' entertainment economy, and Warner Bros. Discovery employees have feared potential cuts since Paramount emerged as the buyer in February. When news first broke that Paramount had won the bidding, the mood among many at CNN was described as "beyond bleak", according to Deadline's reporting at the time.

There is also a wider newsroom question. Bari Weiss was installed as editor in chief overseeing CBS News, which sits inside Paramount. CNN staffers have previously said they fear the deal could hurt CNN's journalism and financial health.

For viewers, this means little changes on screen right now. The fight is over ownership, debt and jobs. What gets decided in the next few weeks will shape who funds the newsroom and which shows get room to grow.