Zucker leaving CNN may change the long-term plans for CNN+, sources say
- Discovery executives view CNN as increasing the value of a larger streaming service rather than a niche news offering, sources say.
- Discovery CEO David Zaslav found out about CNN boss Jeff Zucker's resignation just hours before Zucker informed his staff.
- Zucker is unlikely to return to CNN after the merger closes, a source said.
Discovery Communications CEO David Zaslav has a long-term friendship with outgoing CNN chief Jeff Zucker, who announced his sudden resignation Wednesday after failing to disclose an office relationship. But his ouster may actually help Zaslav better align CNN with his broader streaming strategy, according to people familiar with his thinking.
Zucker's surprise exit will likely slow down advancement of CNN+, the standalone subscription streaming service Zucker has been building while WarnerMedia is still a part of AT&T. Discovery plans to merge with WarnerMedia at some point in the second quarter of this year.
Key executives at Discovery view CNN's value as supporting a bulkier flagship product, featuring content from HBO Max and Discovery+, along with streaming sports, said the people familiar with the matter, who asked not to be named because the executives' perspective are private. They believe there's less value in CNN+ as its own paid subscription service, said the people familiar with the thinking.
"I haven't gotten a business review on what CNN+ is going to be and how it's going to be offered," Zaslav said in an exclusive CNBC interview Friday.
A Discovery spokesperson declined to comment.
A full offering featuring the best content owned by WarnerMedia and Discovery would rival Netflix and Disney's bundle of Disney+, Hulu and ESPN+ as staple streaming services for families looking to replace traditional pay-TV. Discovery announced Thursday it was in talks to add more European sports to Discovery+ through a new joint venture with BT Sport.
"The objective is that CNN would be seen everywhere in the world on every device so people get up in the morning and they'll turn to us for what's going on in their country and what's going on around the world," Zaslav told CNBC. "That's powerful, that's differentiating versus a Netflix or a Disney."
Zucker has spent the past few months hiring people for exclusive CNN+ programming, including former Fox News reporter and anchor Chris Wallace, New York University's Stern School of Business professor Scott Galloway, author-chef Alison Roman and actress Eva Longoria. WarnerMedia hasn't publicly announced a launch date or price for CNN+. Bloomberg News reported CNN was planning to debut its streaming service in March for $5.99 per month.
Those shows can add value to a combined Warner Bros. Discovery streaming offering. But Zucker's departure could give Zaslav more freedom to decide how to proceed with CNN's live programming and CNN+ without having to butt heads with a friend, two of the people familiar with executive thinking said.
Discovery isn't allowed to formalize decisions on future leadership for the combined company until the merger closes. It's unclear what Zucker's role would have been under Zaslav, though Zucker extended his tenure at WarnerMedia last year until at least the merger's close to keep his options open.
Zaslav learned of Zucker's resignation just hours before Zucker informed CNN's staff that he was stepping down, sources familiar with executive thinking said. It's unlikely Zucker will return to run CNN after the merger, one of the sources said.
"Jeff is a good friend of mine," Zaslav told CNBC. "I can't speak to this issue. I don't, we don't own the company yet. We're not involved in any of that."
WarnerMedia CEO Jason Kilar announced Wednesday three current CNN executives — Michael Bass, Amy Entelis, and Ken Jautz — will run the network until the merger closes.
WATCH: CNBC's full interview with Discovery CEO David Zaslav