CNN’s newly appointed chief executive officer, Mark Thompson, started his first official day at the news outlet by discussing the significance of digital offerings, a Wall Street Journal report said. CNN is Warner Brothers Discovery’s (NASDAQ:WBD) popular news channel. Thompson noted that although traditional TV channels are important, they “can no longer define us.”
In an internal video message on Monday, October 9, Thompson said he aims to modernize CNN by using his former expertise as CEO of the New York Times (NYSE:NYT). Thompson believes that younger audiences first turn to their smartphones for viewing news and not the TV. Thus, any news media outlet that does not support this revolution cannot survive. CNN, under its former CEO Chris Licht, was focused heavily on the television streaming business and had turned more political in its news offerings.
Thompson believes that CNN needs to act swiftly to change that system and adapt to changing times. He added that CNN “is still nowhere near ready for the future.” In his prior role, Thompson was instrumental in revitalizing the NYT’s business offerings, such as online subscription-based models, podcasts, and more. CNN has already started a CNN Max service, a digital offering of a collection of programs from CNN. Thompson believes this service alone is not enough to boost its digital presence.
With the presidential election year (2024) drawing near, news channels need to gear up their offerings since they draw the most viewership during these times. CNN surely hopes to regain its lost glory and leadership position under Thompson’s leadership while maintaining an apt balance between TV and digital broadcasting.
Is Warner Brothers Stock a Buy, Sell, or Hold?
Yesterday, Barclays analyst Kannan Venkateshwar cut the price target on WBD stock to $13 from $15 while maintaining a Hold rating.
Overall, with 11 Buys and three Hold ratings, WBD stock commands a Strong Buy consensus rating on TipRanks. Also, the average Warner Brothers Discovery price target of $17.82 implies a massive 69.3% upside potential from current levels. Year-to-date, WBD stock has gained 10.4%.
