CNN taps media veteran Thompson as CEO to spearhead turnaround

ATLANTA – Warner Bros Discovery named Mr Mark Thompson as CEO of CNN on Wednesday, tasking the former New York Times and BBC chief with reviving a news network beset by sagging ratings and falling profits.

Mr Thompson succeeds Mr Chris Licht, who stepped down in June after a rocky one year at the helm that included a divisive town hall with former president Donald Trump and the shutdown of the CNN+ streaming service just weeks after its launch.

With Mr Thompson, 66, Warner Bros Discovery is turning to an executive with ample experience at the top level, unlike Mr Licht – a former TV producer who had worked on The Late Show With Stephen Colbert and MSNBC’s Morning Joe.

During his eight-year tenure as CEO of the Times, Mr Thompson helped transform the Gray Lady into a beacon for newspapers in the Internet age by focusing on digital subscriptions.

The Times’ share price grew nearly fivefold in the period, widely outperforming the benchmark S&P 500 index.

“Mark is a true innovator who has transformed for the digital age two of the world’s most respected news organisations,” Warner Bros Discovery CEO David Zaslav said.

Pivotal time

Mr Thompson’s appointment, effective on Oct 9, comes ahead of what is expected to be a hotly contested US presidential election in 2024, with candidates including Trump, Democratic incumbent Joe Biden and Florida Governor Ron Desantis.

A big focus area for the new CEO is likely to be the recently announced round-the-clock news service called CNN Max, which will be available on Warner Bros Discovery’s streaming platform.

CNN Max is looking to capitalise on the immediacy of breaking news and analysis, differentiating it from CNN+, which featured lifestyle programmes.

“Thompson’s appointment underlines the importance of turning around the fortunes of CNN,” said PP Foresight analyst Paolo Pescatore. But he warned that success was not guaranteed, given the trend of cord-cutting and stiff competition in the industry.

“It comes at a pivotal time in a make-or-break scenario for the business. All options should still be on the table,” he added, referring to speculation that the news network could be up for sale.

Mr Licht, the former CEO, tried to lift CNN’s ratings by attracting more Republican viewers after he took the reins in 2022 from long-time chief Jeff Zucker, who resigned over his failure to disclose a consensual relationship with a colleague.

But Mr Licht’s efforts, including the Trump town hall, and a critical article in the Atlantic magazine sparked widespread employee backlash and contributed to his exit.

CNN’s profit fell under US$1 billion (S$1.35 billion) in 2022 and is expected to be modestly higher this year than last, at US$938.6 million, according to data from S&P Global Market Intelligence.

Those estimates are for the CNN networks that operate in the United States, including CNN en Español and CNN International.

During June, CNN’s audience lagged behind Fox News and MSNBC in prime time and across the total day, according to data from Nielsen. REUTERS