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Wednesday, August 30, 2023

Bloomberg and MSNBC remain silent as Stephanie Ruhle falls under scrutiny, Evan Gershkovich's parents visit The WSJ newsroom, The Daily Tar Heel's front page receives praise, Fox News Media announces its second GOP debate moderators, OpenAI is reportedly on track to earn more than $1 billion in revenue, and the Venice Film Festival kicks off with reminders of the pain in Hollywood. But first, the A1.

THE A1

CNN's New Chief

CNN Photo Illustration/Sanjit Das/Bloomberg/Getty Images

It's official: Mark Thompson, the former chief executive of The New York Times and director-general of the BBC, will be the next leader of CNN, taking the reins of the renowned global news organization at one of the most pivotal times in its 43-year history.

Thompson, who will officially begin on Oct. 9 as chief executive and chairman, in addition to acting as the outlet's editor-in-chief, said in a statement that he "couldn't be more excited about the chance to join CNN after years of watching it and competing against it with a mixture of admiration and envy."

"The world needs accurate trustworthy news now more than ever and we've never had more ways of meeting that need at home and abroad," Thompson said. "Where others see disruption, I see opportunity. I can't wait to roll up my sleeves and get down to work with my new colleagues to build a successful future for CNN."

The selection of Thompson marks the beginning of a new and transformative chapter for CNN. Here are some observations and questions on the high stakes move.

► It's a risk for Thompson. Like Bob Iger, Thompson is coming out of retirement to take on a Herculean task, managing a complex, mammoth media company at a time of mass disruption across the entire industry. Thompson could have enjoyed retirement, coasting off the sterling reputation he earned after breathing life into The Times and revitalizing the outlet from a print-based publication to a digital powerhouse. He will instead put much of his legacy at risk by betting that he can replicate his success at CNN, this time aiming to transform a linear television-based company into a profitable streaming and digital giant. In his first memo to employees, Thompson acknowledged a state of "peak disruption" in media, writing, "We face pressure from every direction – structural, political, cultural, you name it. … There's no magic wand that I or anyone else can wield to make this disruption go away. But what I can say is that where others see threat, I see opportunity – especially given CNN's great brand and the strength of its journalism."

► It's also a risk for David Zaslav. The Warner Bros. Discovery chief executive could have waited to appoint a singular leader of CNN after firing his former hand-picked network boss Chris Licht. No one would have blamed him for keeping the four-person interim leadership team — made up of Amy Entelis, Virginia Moseley, Eric Sherling, and David Leavy — steering the ship. Organizational morale was up under the leadership of "The Quad" and staffers widely expected them to stay in power until the conclusion of the 2024 election (Wednesday's announcement said, however, that they will remain in their current roles). In effect, Zaslav had a win by just keeping the current leadership team in place. By appointing a new chief executive and chairman, he's taking an inherent risk as the 2024 presidential cycle heats up.

► What is CNN's editorial mission and philosophy? Under former network boss Jeff Zucker, staffers never questioned what CNN's mission statement was. It was focused on holding the powerful accountable and calling out B.S. from whomever was peddling it — all while doing so in plain language. That made the network a target of Donald Trump, but it also gave the organization a sense of incredible purpose. Licht, on the other hand, struggled to articulate his own editorial mission. It was never quite clear precisely what his vision was. He directed staff to "widen the aperture" on stories the network was covering and insisted it should take Trump's ramblings live on air, among other things. But the overarching mission was muddled. It will be illuminating to hear more from Thompson on this matter, given he will also be responsible for CNN's editorial.

► Licht opened the door to MSNBC. On the television front, CNN's bread and butter once was the big politics-focused breaking news events. But under Licht, largely as a result of his editorial preferences, CNN slid behind MSNBC, including in the advertiser-coveted 25-54 demographic. The network has, under "The Quad," made some notable progress on the ratings front, doing its best to claw its way back. But heading into 2024, which will be saturated with news cycles focused on the election and Trump's criminal indictments, whether Thompson can totally reverse CNN's ratings fortunes will be worth watching.

► CNN has other challenges. Outside the existential threat the network faces as the cable bundle prepares to settle into its place in the history books, the network is in desperate need of stability. Thompson will be met with the demanding task of leading a 4,000-employee strong global company that has suffered several seismic blows in the last 20 months. During that trying period, Zucker was unexpectedly ousted; the streaming service CNN+ was abruptly shuttered; star anchorsChris Cuomo and Don Lemon were fired; several programming shakeups were implemented; and mass layoffs were executed. Adding to the turmoil, Licht proved to be an unpopular leader during his short run as network boss, with morale nosediving to some of the lowest levels in the company's four-decade history. It will be up to Thompson to restore trust.

► The contrast to Licht couldn't be more stark. Whereas Licht lacked the experience necessary to manage a large, ego-ridden, multi-platform organization at scale (nevermind, pushing such a company into the future), Thompson has a proven track record of doing just that. During his decades in media, Thompson earned a reputation for being a confident executive with thick skin who masterfully executes a vision, all while maintaining the support of the troops. Licht's first move was to relocate his office outside CNN's floors in Hudson Yards. Thompson's first message to staff was that he was eager to "roll up my sleeves and get down to work with my new colleagues."

► The CNN staff are cautiously optimistic. For all the whiplash and challenges the organization has endured in the last 20 months (not to mention the many years of threats and attacks from Trump and his allies), employees still deeply love CNN and believe in what those three letters stand for. They want the network to succeed. And because of that, they're excited about what Thompson might be able to do as their next leader. They've seen his track record of reshaping pre-eminent news organizations for the future. They've heard the praise his former colleagues have offered up for him. And so, like Thompson, they're ready to roll up their sleeves and get to work.

——— BELOW THE FOLD ———

CNN Photo Illustration/Nathan Congleton/NBC/Getty Images

Radio Silence From Ruhle: More than 24 hours has passed since court records exposed an unusual relationship between Stephanie Ruhle and Under Armour founder Kevin Plank, in which the then-Bloomberg journalist offered the executive strategic advice on a private phone line without disclosing so in news reports. But neither Bloomberg News, nor MSNBC, nor Ruhle have publicly commented on the matter, despite the inappropriate behavior laid bare in the documents. It's maybe understandable why Ruhle might not wish to comment. But it's not a great look for Bloomberg News and MSNBC.

THE INDUSTRY

CNN Photo Illustration/Joe Fornabaio/The Wall Street Journal

Parents of the Press: The WSJ on Wednesday welcomed the parents of detained reporter Evan Gershkovich. The parents, Ella Milman and Mikhail Gershkovich, gave "touching remarks about Evan and the efforts to bring him home," Emma Moody, the paper's head of standards and ethics, said in a memo to employees. "While a sobering moment," Moody added, "it was heartwarming to see the newsroom and broader WSJ community come together with Ella and Mikhail in person." You can see a photo taken in the newsroom above. And just a reminder: It has been 22 weeks since Gershkovich was detained in Russia.

THE FOURTH ESTATE

The Daily Tar Heel is being showered in praise for a striking front page after the shooting at the University of North Carolina at Chapel Hill. Amaris Castillo has the story on how it came to be. (Poynter)
Half the staff at Atlanta magazine quit after the publisher decided the publication wouldn't use sources' preferred pronouns, Laura Wagner reports. (WaPo)
RIP: Former NBC News and Telemundo executive Don Browne has died. He was 80 years old. (TVNewser)

THE MARKET

Barstool Sports, once again owned by Dave Portnoy, will lay off nearly a quarter of its 400+ employee base, Andrew Marchand and Michael Rosenstein report. (NY Post)
Disney was slapped with yet another lawsuit from investors over the entertainment giant's alleged "fraudulent scheme" designed to obfuscate streaming costs. (Deadline)
While most streaming services are hiking prices, Starz is lowering the annual cost of its streaming service. (Cord Cutters News)
Elaine Bauer Brooks will part ways with CBS Media Ventures after nine years at the company. (Deadline)

MEDIA MOVES

NBCU named Mark Marshall its chairman for global advertising and partnerships, filling the void left by Linda Yaccarino. (Deadline)
The NYT promoted Sadiba Hasan to staff reporter. (NYT)

THE INFO WARS

CNN Photo Illustration/Getty Images

Up for Debate: The moderators for the second Fox News Media debate are set. The right-wing outlet, which is partnering with Univision for the GOP melee, announced Wednesday that Stuart Varney, Dana Perino, and Ilia Calderón will moderate the next Republican presidential primary debate, slated for September 27. The debate is being hosted by Fox Business, but will also be simulcast on Fox News. Notably, Fox Business' most widely recognized anchors, conspiracy theorist Maria Bartiromo and the respected Neil Cavuto, were not tapped for the assignment.

IN THE BATTLEFIELD

First in Reliable | "Former Trump White House press secretary Sean Spicer will be deposed in October as part of Smartmatic's defamation lawsuit against Newsmax," CNN's Marshall Cohen reports, citing court filings. "Spicer previously hosted a talk show on the right-wing network, including during the 2020 election season."
Right-wing media's "latest attempt to prove Biden is senile is breathtakingly cynical," Matt Gertz writes. (MMFA)
Isaac Schorr has details on the infighting in right-wing media, where the National Review and Heritage Foundation are warring. (Mediaite)
Oliver Anthony Music, the artist behind "Rich Men of Richmond," told Joe Rogan that he rejects being referred to both as "right wing" and as a "left-wing fanatic."(Mediaite)

THE VALLEY

CNN Photo Illustration/Jaap Arriens/NurPhoto/AP

OpenAI's Opulence: ChatGPT-maker OpenAI is on pace for a monster year. The company "is currently on pace to generate more than $1 billion in revenue over the next 12 months from the sale of artificial intelligence software and the computing capacity that powers it," per The Info's Amir Efrati and Aaron Holmes. The duo added that the figure "implies that the Microsoft-backed company, which was valued on paper at $27 billion when investors bought stock from existing shareholders earlier this year, is generating more than $80 million in revenue per month." Read the full report here.

TOO MANY TABS

OpenAI was accused of several data protection breaches in a complaint filed with Poland's data protection authority. (TechCrunch)
A lawsuit alleging Elon Musk's X/Twitter largely cut out older employees during layoffs was allowed to move forward by a court. (Reuters)
Lindsey Choo and Meghan Bobrowky look at the "Twitter superfine trying to ditch the X brand." (WSJ)
Meta rejected a request from the Oversight Board to suspend the account of Hun Sen, Cambodia's leader, after he posted a video earlier this year showing him threatening dissidents. (WaPo)
Emily Baker-White chats with Lizzie O'Leary on the draft deal between TikTok and the U.S. government, which Baker obtained: "This draft agreement would give the government much broader power over TikTok, both in what it can access and what it can veto." (Slate)
Is Instagram about to make Reels longer to better compete with TikTok? (Engadget)
Apple "is testing the use of 3D printers to produce the steel chassis used by some of its upcoming smartwatches," Mark Gurman reported, citing sources and noting it would represent "a major change to how the company manufactures products." (Bloomberg)

CURTAIN CALL

CNN Photo Illustration/Yara Nardi/Reuters

Vocal in Venice: The 2022 Venice Film Festival commenced Wednesday as Hollywood remains frozen in place amid the dual strikes plaguing the entertainment industry, but reminders of the pain at home were evident at the Italy event. Perhaps most notable, thus far, "La La Land" director Damien Chazelle arrived at a press conference wearing a T-shirt supporting the WGA, as well as a pin appended to his blazer. "There's a basic idea that each work of art has value unto itself, that it's not just a piece of content — to use Hollywood's favorite word right now — to be put into a pipeline," Chazelle said. CNN's Alli Rosenbloom has more.

HOLLYWOOD HELL

Jimmy Kimmel revealed on the new Spotify "Strike Force Five" podcast that he was "very intent on retiring," but the strikes changed his mind, reminding him that it's "kind of nice to work." (Variety)
A Gallup poll showed that over two-thirds of American respondents support the striking writers and actors. (TheWrap)
Selena Gomez took down an Instagram post touting "Only Murders in the Building" after she was accused of breaking SAG-AFTRA's strike rules. (Variety)

OFF STAGE

A judge dismissed a lawsuit against Universal Pictures in which two Ana de Armas fans claimed they had been hoodwinked after renting a film whose trailer showed the actress, only to discover she'd been edited out of the actual film. (BBC)
Christopher Nolan's "Oppenheimer" debuted in China on Wednesday, taking in $5.4 million at the box office with an expected total of over $20 million expected through the weekend. (Deadline)
Jennifer Maas takes a look at Netflix's forthcoming live-action TV series "One Piece," based off Eiichiro Oda's manga. (Variety)
Netflix renewed "The Lincoln Lawyer" for a third season. (TheWrap)
Hulu canceled "The Great" following its third season. (TheWrap)
Gary Oldman will star in Paolo Sorrentino's next film. (THR)

Thank you for reading! This newsletter was edited by Jon Passantino and produced with the assistance of Liam Reilly. Have feedback? Send us an email here. We will see you back in your inbox tomorrow.