WarnerMedia has raced to launch the CNN Plus streaming service before its planned takeover by Discovery, placing a wager of about $350mn on the news channel’s digital future that was not originally disclosed to its incoming owner.Warner’s decision to launch the service leaves David Zaslav, Discovery chief, potentially saddled with additional costs at a time when he is already under pressure to trim the Warner-Discovery group’s $55bn combined debt load.Jason Kilar, chief executive of CNN parent company Warner, has authorised CNN’s leadership to press ahead with the investment of about $350mn in 2022 to build the streaming service, according to people familiar with the matter.This budget, set after the merger was agreed last May, significantly adds to the company-wide spending plans Warner initially shared with Discovery, these people said. Kilar has pushed forward ambitious plans for CNN Plus even as he knew he would probably be leaving the company when the $43bn deal closes.The project faces the uncertainty of upheaval after its parent company is acquired by Discovery, which might reset the approach to streaming.CNN Plus is planned to launch sometime this month, while the Discovery-Warner merger is expected to close soon afterwards in April.While crafting a broader streaming strategy for the merged company, to be called Warner Bros Discovery, Zaslav must decide whether to carry on with the investment in CNN’s future, which is built on a separate tech platform from HBO Max, Warner’s flagship service.Zaslav is set to take control of CNN at a tumultuous time. Jeff Zucker, CNN’s longtime chief, abruptly left the company last month after failing to disclose a romantic relationship with a subordinate. Some staff have expressed anger over the situation.Warner this week chose Chris Licht, executive producer of CBS’s Colbert Show, to replace Zucker after Discovery completes its takeover.
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