CNN is facing a significant shift in its future as Warner Bros. Discovery, its parent company, plans to spin off the network into a separate entity by 2026, according to multiple media industry sources.

The decision is part of a broader corporate strategy announced last week that will see Warner Bros. Discovery split into two standalone companies—one focused on studios and streaming, and the other composed of traditional cable television networks.

CNN is expected to be included in the latter category, which industry observers have described as being treated internally as a “declining asset.”

Warner Bros. Discovery CEO David Zaslav, who will retain oversight of the studio and streaming side, has appointed company CFO Gunnar Wiedenfels to lead the spin-off group that will house CNN and other cable assets. The transition is expected to be finalized by mid-2026.

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“Putting a bean counter as CEO sends a very clear message: this is finally the beginning of the long-overdue correction of the [Jeff] Zucker-era excesses,” a media insider told Fox News Digital, referencing the former CNN president whose leadership was known for expanding the network’s on-air personalities and production budgets.

According to the insider, the restructuring will likely result in major cost-cutting measures across CNN.

“It’s not just the overpriced talent. It’s the overpriced producers. The overpriced executives. The superfluous reporters who barely are on the air. All will either be exited or forced to take massive pay cuts,” the source said.

CNN has struggled with ratings and public trust in recent years.

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Once a dominant force in cable news, the network has seen declining viewership and credibility amid criticism over its political coverage and commentary.

Industry analysts say the shift away from traditional linear television and the rising dominance of digital and streaming platforms have only accelerated CNN’s challenges.

The upcoming spin-off could mark a turning point in how CNN operates and is positioned in the media landscape.

While details about the specific structure and strategic direction of the new company have not been fully released, the move is widely viewed as a signal that Warner Bros.

Discovery is ready to distance itself from what it sees as underperforming cable assets.

The 2021 merger between Discovery Inc. and WarnerMedia was initially promoted as a transformative deal that would create a new powerhouse in the global media space.

Zaslav had called the new entity “the best place for impactful storytelling.”

However, the combination has struggled to deliver the financial performance and viewer growth that had been anticipated.

CNN’s placement in the cable-focused spin-off rather than the studio-streaming segment underscores the challenges the network is facing.

Media analysts expect further internal shake-ups at CNN as the network attempts to adjust to its new corporate reality.

Warner Bros. Discovery has not announced any formal layoffs at this stage, but sources familiar with the matter suggest that significant personnel changes could begin before the spin-off is completed.

The restructuring comes as media companies across the board face increasing pressure to adapt to rapidly changing viewer habits and evolving advertising models.

For CNN, the next two years could prove pivotal in determining whether it remains a major player in news media or continues its current trajectory under a redefined business model.

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