Conglomerates are being forced to evaluate every aspect of their business. CNN is not providing anything resembling a decent return on investment. Gone are the days where a poorly performing division like CNN will be allowed to be carried by a competently run division. So, as I wrote, CNN has to make cuts, and likely will continue to need to as they aren't exhibiting any changes that will result in improved performance. No real loss as there are other available resources. Finally, AT&T cannot complete their merger until the lawsuit by DoJ, which was fully justified as allowing AT&T to acquire Time Warner does raise legitimate antitrust issues, for which they have no response other than a false argument that they are being harassed, is adjudicated. This isn't likely to happen anytime soon, so I predict AT&T will walk away. They'd be wise to do so, unless they decide to divest the CNN assets which are a drag on the company.
