As New York Times reporter Ken Vogel pointed out on Twitter, Elliott Management isn’t just some faceless finance outfit:
As CNN’s own report on the Elliott stake points out, this power move gives the company just a bit more than a 1 percent stake in AT&T, ranking it as the sixth-largest institutional owner. It would have to rally other stakeholders to force a restructuring of the company’s assets. A company spokesman spoke up:
In other news, CNN reported Monday morning that the United States in 2017 extracted from Russia a top covert source in the Russian government. Key detail: “A person directly involved in the discussions said that the removal of the Russian was driven, in part, by concerns that President Donald Trump and his administration repeatedly mishandled classified intelligence and could contribute to exposing the covert source as a spy.”
It was a reminder that CNN, whatever you may think of it, isn’t going away. Cable news, for all its repetitive programming and deadening panel discussions, remains a great business. According to the Pew Research Center’s 2019 report on the news media, profits in this sector were projected to increase in 2018 by 4 percent to $2.8 billion. Though Fox News accounts for the lion’s share of that figure, its competitors are by no means paupers.
Perhaps with those considerations in mind, AT&T chief executive Randall Stephenson said the following before the merger: “We’re paying a premium to get Time Warner, and when you pay a big premium, the priority is to not screw it up. CNN’s doing quite well, and the priority is to keep management teams in place.” Upending cable-news formulas is a risky proposition, one that explains why CNN continues behaving like CNN, MSNBC like MSNBC and Fox News, lamentably, like Fox News.