who-owns-cnn

Who Owns CNN?

Cable News Network (CNN) is an American news multinational founded in 1980 by media mogul Ted Turner and Reese Schonfeld. CNN is part of Warner Bros. Discovery, a massive group comprising brands such as Discovery, Warner Bros, HBO, HGTV, Food Network, and many others. The Warner Bros. Discovery group generated over $33 billion in revenue in 2022, primarily owned by institutional investors.

AspectDescriptionAnalysisExamples
Products and ServicesCNN provides news content through various platforms, including cable television, digital and online media, mobile apps, and social media. It offers news reports, feature stories, live broadcasts, and multimedia content such as videos and podcasts.CNN’s primary focus is on news gathering, reporting, and dissemination. It adapts its content for various digital platforms to reach a wider and more diverse audience.CNN television broadcasts, CNN.com website, CNN mobile app, CNN’s social media channels.
Revenue StreamsCNN generates revenue through various channels, including advertising, subscription fees from cable and satellite providers, content licensing, affiliate partnerships, and sponsored content.Advertising is a significant revenue source, with subscription fees from cable providers also contributing. Diversified revenue streams help sustain operations.Advertising revenue, cable and satellite subscription fees, content licensing agreements, affiliate partnerships.
Customer SegmentsCNN’s audience includes a broad spectrum of viewers and readers, including news enthusiasts, professionals, policymakers, and the general public interested in staying informed about current events.CNN’s wide viewership and readership span across demographics, making it a valuable platform for advertisers and news consumers alike.News enthusiasts, professionals, policymakers, general news consumers.
Distribution ChannelsCNN distributes its content through cable and satellite television providers, its official website (CNN.com), mobile apps, social media platforms, and syndication partnerships with other news organizations.Multichannel distribution ensures CNN’s content is accessible to viewers across different platforms and devices, including television and digital media.Cable and satellite TV providers, CNN.com, CNN mobile app, Facebook, Twitter, syndication to local news outlets.
Key PartnershipsCNN collaborates with cable and satellite providers to ensure distribution to viewers. It also forms content-sharing partnerships with other news organizations and syndicates its content to local news outlets.Partnerships with cable providers ensure broad viewership. Content-sharing partnerships and syndication expand CNN’s reach and impact.Collaborations with AT&T, content-sharing with Reuters, syndication to local news affiliates.
Key ResourcesCNN’s key resources include its extensive network of journalists and correspondents, state-of-the-art newsrooms and studios, technology infrastructure for live broadcasting, its brand reputation, and a global team of employees.A vast network of journalists enables real-time news coverage. Advanced technology and studios support high-quality broadcasting. The CNN brand is synonymous with news credibility.CNN’s global news teams, broadcasting facilities, advanced newsroom technologies, and a dedicated workforce.
Cost StructureCNN incurs costs in journalism and reporting, content production, technology infrastructure, marketing and promotion, employee salaries, and distribution logistics.Maintaining a team of journalists and news bureaus worldwide is a significant cost. Investment in technology and marketing is crucial for audience engagement. Employee salaries are substantial due to the talent required.Journalists’ salaries, content production, technology infrastructure maintenance, advertising campaigns, employee wages.
Competitive AdvantageCNN’s competitive advantage lies in its global news coverage, experienced journalism team, state-of-the-art broadcasting technology, brand reputation for news credibility, and extensive distribution channels. It has a strong position in the competitive news media industry.CNN’s extensive network of journalists enables real-time global news coverage. Advanced technology supports high-quality broadcasting. The CNN brand is associated with trust and reliability in news reporting.Real-time global news coverage, reporting from conflict zones, CNN’s “The Situation Room” program.
Value PropositionCNN offers its audience timely and reliable news coverage, enabling them to stay informed about national and international events. It provides in-depth analysis, live updates, and a platform for diverse perspectives on significant news stories.CNN’s value proposition centers on delivering accurate, timely, and comprehensive news content to keep the audience informed and engaged. It offers a platform for staying updated on critical events and discussions.Watching CNN for breaking news updates, reading in-depth articles on CNN.com, following CNN’s social media for news alerts.

 

Advance/Newhouse Programming Partnership

Advance/Newhouse Programming Partnership is the majority shareholder of CNN with around 70 million in Series A common stock and 23% voting power. 

The shareholder is part of Advance/Newhouse group, a diversified group of privately-owned media companies that operates Condé Nast among others.

BlackRock Inc.

BlackRock is a multinational investment company that was founded in New York City in 1988. In January 2022, BlackRock was the largest asset manager in the world and surpassed $10 trillion in assets under management (AUM)

BlackRock invests funds on its clients’ behalf and because of its vast size, it becomes a majority shareholder in many companies that are competitors. Tech companies Apple and Microsoft and financial services firms JPMorgan Chase and Wells Fargo are two examples.

Braham Capital Corp

Braham Capital Corp. is an investment advisor and hedge fund that is also based in New York. According to the company’s LinkedIn page, “Brahman looks to invest at a point of change, behind truly transformative CEOs with a quantifiable track record of creating shareholder value at companies they lead.

Braham utilizes a unique long strategy with a short portfolio that contains single-name, alpha-generating stocks managed by a dedicated team.

Clearbridge Investments, LLC

Clearbridge Investments is a global equity manager that delivers long-term results via active management. The company’s investment decisions are underpinned by in-depth fundamental analysis, differentiated stock selection, and a collaborative, team-based culture.

Clearbridge has offices in New York City, Fort Lauderdale, London, Sydney, San Mateo, and Baltimore.

Hotchkis and Wiley Capital Management, LLC

Hotchkis and Wiley is a global investment manager that relies on value investing over a long period. The company was founded in 1980 by George Wiley and John Hotchkis who shared the belief that the key to discovering undervalued securities was disciplined, independent analysis.

To that end, the firm prioritizes future cash flows and companies with strong balance sheets, robust business models, and shareholder-friendly capital allocation. 

Morgan Stanley

American multinational investment and financial services firm Morgan Stanley is also a significant CNN shareholder at the time of writing. The company was founded in 1935 by Henry Sturgis Morgan, Harold Stanley, and others in response to a new law that required American commercial and investment banking firms to be split.

The Vanguard Group, Inc

The Vanguard Group holds around 50 million Series A and Series C common stock and 7.6% voting power. Based in Malvern, Pennsylvania, Vanguard has around $7.2 trillion in AUM across primarily exchange-traded funds (ETFs) and mutual funds. 

In addition, the company offers financial planning, trust, brokerage, educational account, and other asset management services. Vanguard was founded by the legendary business magnate, investor, and philanthropist John C. Bogle.

Origin Story

Cable News Network (CNN) is a news channel and website that was founded in 1980 by American media mogul Ted Turner and journalist Maurice Wolfe “Reese” Schonfeld. 

CNN holds the distinction of being the first all-news television channel in the USA and also the first to provide 24-hour news coverage. Today, it offers 24 branded networks and services to more than 2 billion people in 200 countries and territories

In the United States where it is headquartered in Atlanta, Georgia, CNN reaches around 80 million households

How the service came into existence is told in the sections that follow.

Early years

Turner’s father had run a successful billboard advertising company, and when he passed away in 1963, took over the family business and expanded it. In 1970, Turner purchased an ailing TV station in Atlanta that showed network reruns and old movies, and was also the only channel in the area still broadcast in black and white.

Soon after he received approval from the FCC, Turner renamed the station WTCG which is believed to be an acronym for “Watch This Channel Grow”. He then leased a transponder on a geostationary satellite and turned WTCG into one of the earliest satellite TV channels.

CNN is launched

CNN was launched on June 1, 1980, with a core staff of 300 and an introduction by Turner followed by a rendition of The Star-Spangled Banner. The news was then broadcast, and among the first segments was an interview with President Jimmy Carter.

CNN lost money in the 1980s and was often ridiculed as the Chicken Noodle Network by competitors for its small operating budget. But Turner continued to invest in his venture and CNN earned a loyal following because, unlike the competition, it offered continuous coverage of small and large news events.

CNN2 was launched on January 1, 1982, and focused on 24-hour news coverage with rolling 30-minute newscasts. It was later renamed Headline News (HLN). Turner then purchased Satellite News Channel in 1983 to eliminate his main competitor.

Growth and traction

Copycat networks inevitably followed in the late 80s and 90s, but CNN’s ability to cover events around the world as they happened saw it maintain its dominant position.

Two events that stand out over this period include the Challenger space shuttle disaster and the Gulf War. In the latter, CNN triumphed over other networks with its live, “in-country” news that covered events and perspectives from both sides of the conflict.

By 1996, CNN expanded its reach to encompass numerous satellite and cable TV networks, websites, and closed-circuit channels such as those offered in some airports. Bringing the news to CNN’s growing audience were 900 affiliated location stations, 31 international bureaus, and 11 domestic bureaus.

Expansion and Time Warner acquisition

In addition to the news, CNN has produced numerous successful daily and weekly prime-time series over the years. One of the most popular was Larry King Live, an interview talk show hosted by Larry King that ran for 35 years.

Other notable series include Anthony Bourdain: Parts Unknown, Crossfire, Moneyline, The Situation Room, and Anderson Cooper 360°.

Time Warner acquired the outstanding shares in Turner Broadcasting System in 1996 which at that point included CNN, TNT, Cartoon Network, and two professional sports teams Turner had purchased in the 70s.

Various iterations of Time Warner have owned CNN since. These include AOL Time Warner, WarnerMedia (AT&T), and Warner Bros. Discovery, the most recent entity that took ownership of the network in 2022.

Key takeaways:

  • Cable News Network (CNN) is an American news multinational that was founded in 1980 by media mogul Ted Turner and Reese Schonfeld. 
  • Advance/Newhouse Programming Partnership is the majority shareholder of CNN with around 70 million in Series A common stock and 23% voting power. The Vanguard Group is also a significant CNN shareholder.
  • Other CNN shareholders include Morgan Stanley, Hotchkis and Wiley, Braham Capital, and Blackrock.
  • Cable News Network (CNN) is a news channel and website that was founded in 1980 by American media mogul Ted Turner and journalist Maurice Wolfe “Reese” Schonfeld. CNN holds the distinction of being the first all-news television channel in the USA.
  • CNN was launched on June 1, 1980, with a core staff of 300 and an introduction by Turner followed by a rendition of The Star-Spangled Banner. The news was then broadcast, and among the first segments was an interview with President Jimmy Carter.
  • Copycat networks inevitably followed in the late 80s and 90s, but CNN’s ability to cover events around the world as they happened saw it maintain its position as leader. Two notable events over this period are the Challenger space shuttle disaster and Gulf War.

Key Highlights of CNN and Its Shareholders:

  • CNN’s Background: CNN (Cable News Network) is an American news multinational founded in 1980 by media mogul Ted Turner and Reese Schonfeld. It was the first all-news television channel in the USA, offering 24-hour news coverage.
  • Ownership: CNN is part of Warner Bros. Discovery, a major media group that includes brands like Discovery, Warner Bros, HBO, HGTV, and more. In 2022, this group generated over $33 billion in revenue and is primarily owned by institutional investors.
  • Advance/Newhouse Programming Partnership: This partnership is the majority shareholder of CNN, holding approximately 70 million in Series A common stock and 23% voting power. It’s part of the Advance/Newhouse group, which operates media companies like Condé Nast.
  • BlackRock Inc.: BlackRock is a multinational investment company based in New York City, with over $10 trillion in assets under management (AUM) as of January 2022. BlackRock invests on behalf of clients and is a significant shareholder in various companies, including tech giants like Apple and Microsoft.
  • Braham Capital Corp.: Braham Capital Corp. is an investment advisor and hedge fund based in New York. It focuses on transformative CEOs and employs a unique long strategy with a short portfolio.
  • Clearbridge Investments, LLC: Clearbridge Investments is a global equity manager known for its active management based on fundamental analysis and stock selection. It has offices in several locations worldwide.
  • Hotchkis and Wiley Capital Management, LLC: Hotchkis and Wiley is a global investment manager specializing in value investing. It prioritizes companies with strong balance sheets, robust business models, and shareholder-friendly capital allocation.
  • Morgan Stanley: Morgan Stanley is a multinational investment and financial services firm founded in 1935. It is a significant shareholder in CNN.
  • The Vanguard Group, Inc: The Vanguard Group holds around 50 million Series A and Series C common stock and 7.6% voting power in CNN. It’s based in Malvern, Pennsylvania, and manages approximately $7.2 trillion in AUM primarily through ETFs and mutual funds.
  • CNN’s Origin: CNN was founded in 1980 by Ted Turner and Reese Schonfeld, offering continuous 24-hour news coverage. It became the first news channel in the USA.
  • Early Years: Ted Turner’s acquisition of ailing TV station WTCG in Atlanta laid the foundation for CNN. He turned it into an early satellite TV channel.
  • CNN Launch: CNN was officially launched on June 1, 1980, with President Jimmy Carter’s interview among its first segments.
  • Growth and Traction: Despite initial financial challenges, CNN’s continuous news coverage gained a loyal following. It expanded its reach through satellite and cable networks and became a dominant news source.
  • Expansion and Time Warner Acquisition: CNN produced successful series like Larry King Live and expanded its reach. Time Warner acquired CNN in 1996, and the network has changed hands through various iterations of the company, including Warner Bros. Discovery in 2022.

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