Making the News - Ted Turner and CNN | The Cable News War | 4

Summary

Business Movers: Making the News - Ted Turner and CNN | The Cable News War | Episode 4

Introduction

In this gripping fourth episode of Business Movers, Wondery delves deep into the tumultuous early years of CNN and the fierce competition it faced from the Satellite News Channel (SNC). Hosted by Lindsay Graham, the episode chronicles Ted Turner's relentless drive to establish CNN as the premier 24-hour news network and the strategic maneuvers he employed to fend off competitors like SNC. Through a blend of historical reenactments and insightful narratives, listeners gain an intimate look into the high-stakes world of cable news during the early 1980s.

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The Birth of CNN and Initial Challenges

Summer 1982: Atlanta, Georgia

The episode opens in downtown Atlanta, where a young Ted Turner is visibly stressed, grappling with declining ratings for CNN following the launch of its competitor, SNC. Turner’s Chief Financial Officer, Bill Bevins, tries to present encouraging numbers, but Turner remains unconvinced.

Key Moments:

• Ted Turner’s Determination: At [00:00], Turner declares, “I’d rather see CNN dead in a ditch than surrender it to someone else,” signaling his unwavering commitment to CNN’s success.
• Facing SNC: SNC, backed by ABC, poses a significant threat with deeper financial resources, forcing Turner to consider aggressive strategies to maintain CNN’s viewership.

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Strategic Moves and the Price War

As SNC gains traction, Turner initiates a price war to undercut the competition. He lowers CNN’s subscription prices and reduces charges for advertising slots in an attempt to retain and attract viewers.

Notable Quote:

• Turner on Price War: “[...] if it turns into a war of attrition, they can afford to bleed far longer than we can” ([00:45]).

However, this aggressive pricing strategy quickly erodes CNN’s revenue, leading Turner to cut staff wages—a move that inadvertently weakens CNN’s operational strength.

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The Rift with Reese Schoenfeld

Reese Schoenfeld, Ted Turner’s former partner and CNN’s newsroom manager, becomes a pivotal figure in the unfolding drama. Their strained partnership, marked by disagreements over budget allocations and editorial control, culminates in Schoenfeld’s demotion.

Critical Interaction:

• Turner’s Reluctance to Sell: When Bill Bevins suggests selling part of CNN to buy time, Turner responds firmly, “It’ll always be no. I’d rather see CNN dead in a ditch than surrender it to someone else” ([00:55]).

This decision leaves CNN vulnerable as Schoenfeld, exasperated by the internal conflicts, contemplates an offer from ABC to lead the new SNC.

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Acquisition of SNC

With ratings slipping and SNC leveraging ABC’s financial backing, Turner faces the grim reality of potential failure. In a bold move, he launches an antitrust lawsuit against ABC, alleging secret deals that disadvantage CNN. This legal pressure forces ABC to sell SNC to Turner for $25 million, significantly less than CBS’s earlier offer of $300 million for CNN.

Key Event:

• SNC’s Shutdown: On October 27, 1983, SNC ceases operations, marking Turner’s victory in the cable news war. A dramatic farewell message from SNC’s Washington correspondent encapsulates the end of an era ([15:47]).

Notable Quote:

• SNC’s Final Broadcast: “[...] That is it period from Washington. [...] Ted, buddy, it’s in your hands” ([15:47]).

This acquisition stabilizes CNN’s financial situation, allowing it to add millions of subscribers and significantly boost advertising revenue.

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Ted Turner’s Expanding Ambitions

Even after securing CNN’s dominance, Turner’s ambitions do not wane. Inspired by Capital Cities’ acquisition of ABC, Turner sets his sights on larger networks.

Attempts to Acquire Major Networks:

• ABC and CBS: Turner’s attempt to mirror Capital Cities’ acquisition strategy faces hurdles. After failing to acquire NBC and facing resistance from CBS’s board, Turner shifts his focus elsewhere.
• Acquisition of MGM: In March 1986, Turner successfully acquires MGM for $1.5 billion, marking a significant expansion into Hollywood despite initial resistance from owner Kirk Krikorian.

Strategic Insight:

• Turner’s relentless pursuit exemplifies his strategic thinking and willingness to take significant risks to expand his media empire.

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Emergence of New Competitors: MSNBC and Fox News

By 1996, CNN faces new competition from MSNBC and Fox News. These channels employ distinct approaches—MSNBC with in-depth, long-form content backed by NBC and Microsoft, and Fox News with a sensationalist, tabloid style.

Impact on CNN:

• CNN struggles to maintain its leading position, ultimately slipping to third place in ratings as Fox News and MSNBC gain prominence.

Turner’s Response:

• To counteract the declining influence, Turner merges Turner Broadcasting with Time Warner and later with AOL. However, these mergers dilute his control over CNN and lead to financial difficulties following the dot-com bubble burst in 2001.

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Legacy and Reflections

The episode culminates with reflections on the legacy of Ted Turner and Reese Schoenfeld. Their partnership revolutionized television news, transforming it into a 24-hour cycle that fundamentally changed public consumption of news. However, the relentless pursuit of viewership also led to sensationalized reporting and an accelerated news cycle, impacting societal perceptions and interactions with information.

Notable Conclusion:

• Impact on News Consumption: “Their need to fill schedules and chase viewers had led to increasingly sensationalized reporting” ([28:21]).

The narrative underscores the complex interplay between innovation, competition, and ethical considerations in the media landscape shaped by Turner and Schoenfeld.

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Conclusion

Business Movers masterfully captures the high-stakes battle between Ted Turner’s CNN and its competitors, highlighting strategic decisions, personal rivalries, and the broader implications for the media industry. Through detailed storytelling and poignant quotes, the episode offers a comprehensive exploration of how CNN not only survived intense competition but also set the stage for the modern era of 24-hour news broadcasting.

For listeners eager to delve deeper into the intricacies of CNN’s rise and Ted Turner’s indomitable spirit, this episode provides a richly detailed and engaging narrative that underscores the transformative power of visionary leadership in the business world.

Transcript

[Lindsey Graham]

Want to get more from business movers? Subscribe to Wondery for early access to new episodes, ad free listening and exclusive content you can't find anywhere else. Join Wondery in the Wondery app or on Apple Podcasts. It's July 1st, 1982, in downtown Atlanta, Georgia. In the back of a parked taxi, 43 year old Ted Turner checks his watch and sticks his head out the window. Bill Bevins, the chief financial officer of Turner Broadcasting, is hurrying down the sidewalk toward the car and Ted waves his arm impatiently. Oh, come on, Bill, what's keeping you? Bill quickens his pace and jumps in the back of the taxi. Ted immediately turns to the driver. Okay, let's go. Fast as you can. Catching his breath, Bill opens his briefcase and pulls out a document. I've got those numbers you want. Ted practically snatches them out of his hands. He flips through the pages, scanning the figures and charts. Good news, Bill. I need good news. Skip over to the latest ratings then, and projections. A week ago, a new competitor to cnn, the satellite news channel, launched nationwide. Now Ted is on his way to a meeting with Advertise, where he must explain how he's going to beat SNC without losing too many viewers. Ted scowls and thrusts the document back at Bill. Dammit. I'm going in front of the ad agencies in five minutes. You gotta give me something. I can't just pull numbers out of thin air. The fact is that since SNC launched, ratings are down. Oh, people are just checking SNC out. They'll come back when they realize CNN is better. You have any idea how long that'll take? Oh, I don't know. A few days, a few weeks. We just have to wait. And if it doesn't work, what then? Well, I'll cut prices. I'll lower fe. Taxi swerves between traffic, jostling the men from side to side. Bill grabs hold of the seat in front of him. And when SNC does the same thing, you really going to get into a price war with them? Well, if I have to, Ted, ABC is backing them. They have deeper pockets than us. If this turns into a war of attrition, they can afford to bleed far longer than we can. I know it's not something any of us want to consider, but have you given any more thought to selling? Ted gives Bill a dark look. Not this again. Even a partial sale would buy us some breathing room. My answer is no. Ted turns and looks out the window. It'll always be no. I'd rather see CNN dead in a ditch than surrender it to someone else. When Ted Turner and Bill Bevins faced the ad agencies, the atmosphere was strained. Everyone in the room knew that if the cable news war between CNN and SNC went on too long, CNN would wind up on the losing side. But what they didn't know was that SNC was about to become an even more dangerous threat. Soon. Cnn' seized the advantage by going after the man who knew more about 24 hour news than anyone else, Ted Turner's old partner, Reese Schoenfeld.

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[Reese Schoenfeld]

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[Lindsey Graham]

Switch upfront payment of $45 for 3 month plan equivalent to $15 per month required intro rate first 3 months only, then full price plan options available, taxes and fees extra. See full [e-mail] from Wondery I'm Lindsey Graham and this is business. By the spring of 1982, the cable news Network had firmly established itself in the American media landscape. The world's first 24 hour news channel had become a trusted source of information for millions of viewers and was being renowned for its high quality coverage of both domestic and international stories. But CNN's founders did not have time to enjoy the channel's success before their relationship imploded. When they started their partnership, they agreed that Ted Turner would handle the money and Reece Schonfeld would manage the newsroom. But the two men struggled to work together. Reese's insistence on high quality on the ground reporting sent budgets ballooning, while Ted was increasingly eager to have his say in CNN's schedule and staffing decisions. But in the battle between the channel's chief executive and its owner. There could only be one winner. Eventually, Reese was fired and shuffled into a consultancy role that marginalized his influence. But that meant CNN was now without the man who knew the channel best. And the timing of Reese's demotion couldn't be worse. In the summer of 1982, CNN faced real competition for the first time. The coverage offered by the satellite news channel was widely recognized as inferior to CNN's. But Ted knew that was no guarantee. Thanks to SNC's main backer, ABC, this new network could afford to run up large losses while it established itself and throw money at its product. Until it improved. CNN could not compete with this kind of financial muscle. So unless Ted could come up with a way to even the odds, CNN would soon be locked in a fight he couldn't win. This is the fourth episode in our four part series on the birth of CNN. The cable news war foreign it's summer 1982. At an Irish bar in New York City, six weeks after the launch of the Satellite News channel. Reese Schoenfeld stares at the COVID of Time magazine. Ted Turner's grin stares back at him. The headline beneath the COVID shot reads the Big TV News Gamble. With a shake of his head, Reese tosses it onto the table. Just then, another man slides into the booth across from Reese. Dick Wald is a senior executive at ABC where he supervises the network's latest venture, the 24 hour news channel, SNC. He nods at the discarded magazine. Any big revelations? Reese? No. Nothing I didn't already know. Good to see you, Dick. Gotta say, your call was a bit of a shock. How's life outside cnm? Well, I'm still on the inside, technically. Is that what you tell yourself? It's what my paycheck tells me. It's not the same though, is it? Well, it's not as stressful, I can say that. Yeah. I'm fast discovering that 24 hour news is not for the faint hearted. So, cards on the table here. What do you think of SNC from a newsman's point of view? You really want me to answer that? Yeah, sure. Lay it on me. Well, alright. I think it's a tired format. It's the same thing TV news has done for 30 years. There's no innovation, no depth to it and it somehow manages to be both rushed and slow. You've got an 18 minute dash around every story in the world, but when real news breaks, you're nowhere to be found. Well, I know I asked you to be honest, but this still stings to hear I heard a rumor that your contract is missing a non compete clause. Is that something you can comment on? Reese takes a slow sip of his beer and says nothing. Dick smiles. Well, anyone would think Ted wanted you to leave and go someplace else. Now I hate the thought of ever doing Ted Turner a favor, but maybe I could help him out here. I want you to run smc. Reese leans back in the booth. Go up against cnn. Don't think of it as going up against cnn. Think of it as going up against Ted Turner. Look, Reese, you're the best TV news executive out there, and if CNN won't have you, SNC sure as hell will, and we'll pay better. I'll have to discuss it with my wife. It's not a no. Yeah, but it's not a yes either. Oh, come on, Reece. Dick taps his finger on the magazine on the table between them, jabbing at Ted Turner's grinning face on the COVID Are you really telling me that you don't want to Wipe that smile off his face. Reese Schoenfeld left the bar with an offer in hand and a choice looming over him. The idea of building something new thrilled him, but turning against the people he'd built CNN with was another story. His split from Ted may have been acrimonious, but Reece still cared about the rest of his former colleagues, and he couldn't yet see himself in opposition to them. He knew that with the launch of snc, the world of cable news was heading for a showdown. But RIIS wasn't ready to pick a side. At its launch in June 1982, the satellite news channel already had 2.6 million subscribers. It was only half the number signed up to CNN at that stage, but it was still an impressive start, and it had CNN's owner, Ted Turner, worried. Ted had already created CNN2, a second 24 hour news channel designed to undermine SNC before it could build an audience. But that gambit now seemed to have failed and Ted needed to do something quickly. So just eight months after its launch, CNN2 was rapidly rebranded to become the Headline News Channel, but little else changed. Headline News still had the wheel, its 30 minute rotating news cycle and its presenting team remained largely the same as well. In the end, viewers weren't fooled by the cosmetic changes. When the next set of ratings came in, CNN was the most watched 24 hour news channel with SNC in second place, but headline News was a distant third. This was not good enough for Ted. He was determined to see off the threat of SNC no matter what it took so he immediately cut his channel's subscription prices to attract new viewers. And he lowered the charges on commercial slots to lure in new advertisers. He then renegotiated his deals with the cable companies, offering them better terms for carrying CNN and Headline News. But each time Ted tried to undercut the competition, SNC lowered its fees and charges to match. The two news networks were now in a race to the bottom. This price war quickly ate into CNN's revenue. To balance the books, Ted cut back on staff wages. But this soon undermined CNN's fight against SNC in another way. On July 9, 1982, Pan Am Flight 759 went down shortly after takeoff from New Orleans International Airport. With the loss of everyone on board. In CNN's Atlanta newsroom, reporters raced to get images of the crash site. They soon secured some dramatic footage. But the overworked and underpaid junior senior producers didn't know whether CNN had the rights to air it. They called in the new CNN president, Burt Reinhart, for his approval. But Burt was equally in the dark, and he passed the buck to CNN's legal department. And while CNN's lawyers pondered the legality of airing the footage, there was no such hesitation. In the SNC newsroom, they found the same images of the crash site and got them on air as soon as possible. Viewers looking for the latest news on the accident quickly realized that SNC had the more compelling coverage. And many chose to follow the story on SNC rather than cnn. For once, CNN had been beaten to the scoop, and its reputation as America's best source for breaking news had taken a hit. From then on, every day was a new battle in the ratings war between the networks. Both covered US Marines going into action during the Lebanese civil war. They both reported on a mass shooting in Miami, Florida, and on the Minneapolis Thanksgiving Day fire. But CNN couldn't find an edge. Bit by bit, SNC was closing the gap in ratings. It began to dawn on Ted Turner that perhaps he'd made a mistake firing Rhys Schoenfeld. So at the end of 1982, Ted summoned Reece to his office and formally asked him to take the helm of CNN once again. Having turned down the offer from abc, Reese was available. But the negotiation that followed was a tense one. Reese welcomed Ted's offer, but he had conditions. He said he would only return to CNN if he was given complete control over the channel's schedule and its roster of on screen talent. And Ted would have to keep out of the newsroom. These demands were too much. Ted never Liked admitting he was wrong about anything. And he'd felt he'd made a big enough concession already, just offering Reece's old job back. He refused to give Reese the guarantees he was after, so Reese refused to come back. So as 1983 began, CNN still had Burt Reinhart at the reins, and the network's financial outlook was slipping. SNC wasn't making a profit either, but it had all the resources of ABC propping it up. Unless Ted could find a solution soon, it was clear to him that CNN wouldn't survive to see another year. The answer came to Ted from an unexpected source. Another of the big three networks, CBS approached him with an offer to buy CNN for $300 million, the equivalent of almost a billion today. This CBS bid gave Ted a chance to escape the news industry and not just get back all the money he'd invested in cnn, but make a healthy profit, too. Ted was never one to take the easy way out. However, he turned down the offer from cbs. But the bid did get him an idea. He knew CNN could not beat SNC in a war of attrition, but Ted could stop the conflict another way he could buy SNC. In early 1983, however, Ted knew that there was no prospect of ABC agreeing to a deal. So before he made any offer, Ted needed to create a reason for ABC to sell. He turned to one of his favorite weapons litigation. He tasked his lawyers with finding a way to get ABC into court. Eventually, they decided to launch an antitrust suit, arguing that SNC was making secret deals with cable providers to keep CNN off the air. This claim was based on shaky legal ground, but it didn't matter to Ted. It wasn't about winning in court. In fact, Ted suspected the case would never even make it to trial. Instead, the suit was simply intended to put pressure on ABC to come to the table. And it worked. As news of Ted's legal actions spread, ABC's stock price took a hit, and its worried shareholders began asking questions. They wanted to know why ABC was spending money on such an expensive legal case, Especially when SNC was still not making a profit. With ABC shareholders in revolt, Ted pounced. In the fall of 1983, he offered ABC $25 million to cut its losses and sell SNC to him. This was less than than a tenth of the amount CBS had offered for cnn. But ABC accepted. As soon as the ink on the contract had dried, Ted announced that SNC would shut down almost immediately. On October 27, 1983, SNC signed off for the last time with the channel's Washington correspondent directing a message to the man who wielded the axe.

[Ted Turner]

That's it for now. In fact, that is it period from Washington. Because in 18 minutes we turn off the lights here, which means we have time just to give you the world one more time. And then Ted, buddy, it's in your hands.

[Lindsey Graham]

With Ted Turner's only direct competitor now off the air, CNN's cash flow crisis was soon over. CNN and Headline News quickly added several million new subscribers and ad revenue soared as well. The network was back on the road to profitability. The cable news war seemed be over and Ted had won. He had proven that he could see off a big three backed rival and that CNN was no flash in the pan. But as ever, Ted Turner wasn't satisfied with what he had. He wanted to make Turner Broadcasting the biggest media company in America. There was only one way he could see to do that. Business Movers is sponsored by TechUnherd. It's easy to be curious and even a little frightened by the fast pace of change in today's tech world. More and more technology is shaping not just business, but society, culture and politics. So I think it's a good idea to know what today's top tech leaders are thinking and where they plan to go. Tech Unheard is a podcast series that lets you listen in on one on one conversations with industry leaders as they discuss everything from the potential of artificial general intelligence to getting nervous before a big keynote like this. Clip from a conversation with Chris Miller from the American Enterprise Institute.

[Reese Schoenfeld]

I could never have predicted just the speed at which both innovation has happened, but also a recognition that you can pretty quickly turn this innovation into real products. The fact that all of the world's big tech companies are now rapidly increasing their spending on data centers, which means on semiconductors. That's been the surprise.

[Lindsey Graham]

Get in the room with some of tech's biggest leaders. Tune in to Tech Unheard from ARM and NPM wherever you get your podcasts.

[Bill Daniels]

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[Lindsey Graham]

1985 on a ranch in Denver, Colorado, two years after Ted Turner bought and closed down SNC. 64 year old Bill Daniels shakes out a bucket of cattle feed and pats his prized cow as it digs in. Although Bill's at his happiest here on the ranch, he doesn't make his money through livestock. He's one of America's most powerful cable TV executives with 31 cable systems across 10 states. Bill hears a car pulling into the yard behind behind him and turns. He smiles at the familiar face he sees behind the wheel. He and Reese Schoenfeld go back many years. Reese steps out of the car and walks toward Bill and his cow. Well, that's a fine looking animal, isn't she? Summer? Good to see you, Reese. Been too long. The two men shake hands. Bill leans against the fence. All right, so tell me, what's this idea you've got? Well, I think it's a good one for a TV channel. Let me guess. 24 hour news? Exactly. You really want to go up against CNN and Ted? You know I do. I had the chance a few years ago, turned it down. Wasn't the right time. But I think it is now. But what's changed? Well, for one thing, I don't work for TED now, not even as a consultant. And for another, 24 hour news isn't an experiment anymore. It's a gold rush. CNN's making a profit and investors are finally paying attention. Well, maybe. You sure you want back on that treadmill? You could buy a ranch instead. Raise some cattle. Reese reaches over the fence and pats the cow. Well, that's tempting. But if I don't do this, CNN stays the only game in town. And I don't much like the idea of Ted Turner having a monopoly on where America gets its news. I don't recall that bothering your conscience when you worked there. Back then I was around to keep Ted honest, wasn't I? Now he's out on his own and no one's stopping him. You sure that's it though? You're not just settling some score? Oh, that'd be an expensive drug match, Bill. There's room for more than one 24 hour news channel. SNC proved that. I know I can do better. Bill studies Reese for a moment. All right, but this new channel of yours will need a name. One that says exactly what you're doing. Okay. Like what? How about ktth? Ktth? Keeping Ted Turner Honest. Rhys Schoenfeld left Bill Daniels ranch with the backing of one of cable TV's most influential figures. But he needed more than just a single investor. If he was going to take on cnn, Reece would need the support of one of the big three networks. But he wasn't the only one starting negotiations with them. While Reece was looking for investment from America's established networks, Ted Turner was trying to buy. Two years after claiming victory in the cable news war, CNN was finally making Ted Turner some money. Cable TV was growing at a spectacular rate, with the number of households connected doubling every two years. By 1985, CNN had 40 million subscribers and was making annual profits of $20 million, the equivalent of over 60 million today. CNN had become the crown jewel of Turner Broadcasting. But now that Ted had conquered television news, he started looking around for his next challenge. And he aimed high. Ted decided that he wanted to buy one of the big three networks. It was a hugely ambitious move. ABC, CBS and NBC had annual revenues of at least $3 billion. But Ted wasn't deterred by that. He knew that it was possible for a smaller broadcasting network to take over a bigger one, because that's exactly what had just happened to ABC. In March 1985, the capital cities Network had announced that it was acquiring ABC for $3.5 billion. This news stunned industry experts because Capital Cities was only a quarter of the size of the network it was buying. But they had a powerful backer in the form of super investor Warren Buffett. And with his help, they had been able to put together a big enough financial package to seal the the deal. Although Ted could not compete with Buffett's checkbook, the sale of ABC inspired him. And with typical ambition, he took aim at the biggest of the big three NBC. Ted quietly approached bankers and financiers and gradually built up an investment fund with what he thought would be enough resources to acquire the network. But before he had a chance to make his move, Ted's attempt to buy NBC was dealt a shattering blow. In early 1986, it was announced that NBC was being sold to General Electric for $6.4 billion, a price Ted simply couldn't match. Ted was left disappointed, but not deterred. ABC and NBC might now be off the market, but one of the big three networks was still up for grabs. Cbs. This time, Ted changed his strategy, and he went public with his intentions. He spoke openly about the potential synergies between CNN and cbs. He said the two networks, national and International network news operations could be consolidated simultaneously, saving money and expanding their combined reach. But the CBS board members were unimpressed. They didn't like the brash Ted Turner coming in and telling them how he'd do things better. They refused to engage with his bid. So when it became clear to Ted that he would not secure the support of the CBS board, he pivoted. He decided to attempt a hostile takeover instead. Ted began buying up CBS stock, hoping to acquire a large enough share of the network that he could win a place on the board and eventually gain enough votes to push through a sale. But the CBS board was not prepared to just sit back and allow Ted Turner to kick them out. They mounted an aggressive defense, authorizing the repurchase of a fifth of CBS stock from investors that cost millions of dollars and tripled the network's debt. But it stopped Ted from buying the shares himself and pushed up the price of the remaining CBS stock to a level Ted couldn't afford. So Ted then tried to plead directly with CBS shareholders, telling them that the board was sacrificing the network's future to protect their own positions. But his protests had no effect. CBS was now out of Ted's reach as well. With all of the big three networks now off the table, Ted was forced to look elsewhere in his quest to expand Turner Broadcasting. And his gaze soon landed on Los Angeles. Ever since the golden age of Hollywood in the first half of the 20th century, a handful of studios had dominated the American film industry. Among them was Metro Goldwyn Mayer, or MGM. But by 1986, it was in trouble. Its owner, Kirk Krikorian, was under pressure from the American government to sell part of his Hollywood interests or face an antitrust investigation. Ted was quick to try and seize the operation opportunity. But Kerkorian put a $1.5 billion price tag on MGM. This was a big number, but Ted was afraid that he'd miss out again if he delayed. So he accepted the prize. With little negotiation. In March 1986, MGM became the latest addition to the Turner Broadcasting empire. But while he was expanding into Hollywood, Ted received some worrying news. Cnn, the jewel in his crown, was about to face a new Challenger. In early 1986, the Wall Street Journal reported rumors that Rhys Schoenfeld was in advanced discussions with NBC about setting up another 24 hour news channel. It would be CNN's first direct competition in more than two years. And with the financial backing of industry giant NBC and the expertise of Reese Schoenfeld, Ted could see that this new channel would be far tougher opponent than SNC had. But thanks to this Wall Street Journal report, Ted had been given an early warning. And now he had the opportunity to launch a preemptive strike. He announced that when Reese's channel hit the air, he would immediately lower CNN's fees and charges. That same tactic had nearly sunk CNN in its battle with snc. But this time Ted insisted he'd act responsibly. In fact, he announced that he'd do something he'd always refused to consider before he would seek outside investment. But Ted had no intention of following through and selling any shares in cnn. It was all just part of his plan to defeat Reese Schoenfeld. Ted met with several potential investors for cnn. But there was only one meeting that Ted was really interested in. He wanted to talk with NBC, the network that had pledged to back Reese's new channel. After talking over the deal with Ted, NBC put forward an offer of $250 million for a 50% stake of CNN. That bid valued CNN at the equivalent of $1.5 billion in today's money and was a generous offer. But Ted didn't accept it. Instead, he went to the press because NBC had fallen into his trap. The way Ted told the story, NBC had so little confidence in Rhys Schoenfeld and his new channel that they had been desperate to bid for cnn. Reese was outraged by his old partner's trickery. But Ted had put enough doubt in investors minds that they withdrew their support. Support of Reese. Suddenly he didn't have enough capital to launch his news network and was forced to abandon his plans. By the end of 1986, Ted Turner could feel satisfied with his work. He'd made a significant addition to the Turner broadcasting empire with the movie studio mgm. CNN was now making a steady profit. And thanks to Ted's corporate maneuvering, a would be rival had been seen off before it even reached the air. Once again, Ted's victory seemed complete. But in the business world, nothing ever stood still. Eventually, new rivals would emerge to challenge cnn. And Ted would not only be forced to share the airwaves with other 24 hour news channels, but he'd finally have to cede control of CNN as well.

[Chico Felitti]

Hey everybody, we have some exciting news that we want to share. If you want to go on an adventure with Generation Y, we'd love for you to join us. January 26th through the 30th, 2026, we'll be sailing from Miami to the Bahamas on Wondery's first ever true crime cruise aboard the Norwegian Joy. Aaron And I will be there to chat, hang out, dive into all things true crime. And we're thrilled to be joined by some familiar voices in the true crime podcasting world. Sirte and Hannah from Red Handed, Sashi and Sarah from Scamfluencers. And Carl Miller from Kill List. Super excited to hang out with them too. We got some cool activities, interactive mysteries we can solve, testing our forensic skills with a blood spatter expert, and so much more. So for some sun fun and just the right amount of mystery solving, come join us. Ready to jump on this seriously epic adventure? Book your cabin right [e-mail].

[Ted Turner]

Everyone has that friend who seems kind of perfect for Patty. That friend was Desiree. Until one day I texted her and.

[Lindsey Graham]

She was not getting the text. So I went to Instagram. She has no Instagram anymore. And Facebook.

[Ted Turner]

No Facebook anymore. Desiree was gone. And there was one person who knew the answer. I am a spiritual person, a magical person, a witch. A gorgeous Brazilian influencer called Kat Torres. But who was hiding a secret from wondering. Based on my smash hit podcast from Brazil comes a new series, Don't Cross Cat, about a search that led me to a mystery in a Texas suburb. I'm calling to check on the two.

[Lindsey Graham]

Missing Brazilian girls, maybe get some undercover crew there. The family are freaking out. They are locked.

[Ted Turner]

I'm Chico Felitti. You can listen to Don't Cross Cat on the Wondery app or wherever you get your podcasts.

[Lindsey Graham]

It's June 1, 2000 at CNN headquarters in Atlanta, Georgia, on the 20th anniversary of CNN's first broadcast. 68 year old Reese Schoenfeld stands in the corner of a large conference room, sipping champagne. The place is packed with former colleagues, executives, and other familiar faces Reese hasn't seen in years. Somewhere in the crowd is his wife, Pat O'Gorman, swapping newsroom war stories with other CNN veterans. But Reese is looking for someone else when suddenly, from behind him, comes a familiar voice. Gotta say, Reese, didn't think you'd come. Reese turns to find his old boss, Ted Turner, grinning at him. Ted thrusts out a hand, and after a moment of hesitation, Reese takes it. Ted, hi. Well, you know, Pat wanted to see some of the old faces. Well, there's plenty of those here tonight, that's for sure. Yeah, but you know, I don't mind to walk down memory lane too much. We really built something here, you know. We've got a lot to be proud of. We sure do. Reese studies Ted for a bit and then decides to tell him what he came here to say so. Ted, just so you know, I'm writing a book about us. About this. Ah, well, I don't have to guess who the villain is. I'm just telling it how I remember it. Well, you know, memory can be a funny thing. That it can. Ted smirks, his bravado creeping back. You know, I could write a book too. Get a hell of a story to tell. Well, I think you should do it. I'd love to know how that mind of yours really works. You and the rest of the world. But I'll tell you, if you say mean things about me in your book, I'll return the favor. Oh, I believe you, Ted. You never did back down from a fight, even when you really should have. After this CNN anniversary party ended, Ted Turner and Reese Schoenfeld went their separate ways. Reese kept working on his book, which was eventually published as Me and Ted against the World. Which wasn't nearly as hard on Ted as Ted had expected. But at the turn of the new millennium, Ted had bigger things on his mind than an old colleague's memoir. Because for Ted and cnn, the party would soon be over in more ways than one. In 1996, CNN lost its monopoly on 24 hour news. In the space of just four months, two new cable channels were launched. MSNBC was a joint venture between traditional broadcast networking NBC and the computer giant Microsoft. Their channel specialized in long form content covering stories in more detail than CNN usually did. And then Fox News joined the suddenly crowded market. Fox took a more tabloid format with shorter, more sensationalist reporting. And it proved immediately popular with American viewers. And soon both MSNBC and Fox overtook CNN in the ratings. For the first time in its history. CNN was no longer the number one news channel in America. It was third. CNN's owner, Ted Turner, wanted to take the opportunity to shake up the channel and rejuvenate its offering. But his ability to influence CNN's future was waning. Three days after Fox News went live in October of 1996, Turner Broadcasting merged with Time Warner Entertainment. This move was designed to increase Turner Broadcasting's market share, but it also meant that Ted was no longer the sole figure dominating cnn. He now had to share the top table with executives from Time Warner. And Ted's power was diluted further in 2001 when the combined Turner Broadcasting and Time Warner joined with Internet service provider aol. At the time, it was the largest corporate merger in history. But the deal proved to be a disaster. The following year, the so called dot com bubble burst. This crash hit AOL Time Warner hard, and most of Ted's wealth was tied up in its stock. He reportedly lost 80% of his $10 billion fortune. In the past, Ted might have reacted to such a reversal with defiance. But at the age of 65, it seemed his fighting days were behind him. Ted resigned as vice president of AOL Time Warner and began his retirement. By then, Reese Schoenfeld had retired too. After failing to set up his own national news channel with NBC, Reese had stayed in the television industry. He'd worked with the British national broadcaster, the BBC. He'd extended the 24 hour news model to local channels in Long Island, New York and Washington, D.C. and he was the founding president of the Food Network. But by the year 2000, Reese was was spending most of his time writing a memoir. It was clear by then that Reese and Ted's creation had had a far bigger impact than either man could have anticipated. Way back in 1980, CNN had transformed television news from a highly regimented evening roundup of the day's stories to a non stop flow of constant information. But in pioneering this way of delivering the news, Ted and Reese had also fundamentally changed America's relationship with the news in the eyes of some of CNN's critics. Its need to fill schedules and chase viewers had led to increasingly sensationalized reporting. And the availability of live news had accelerated the pace of public life, forcing everyone from celebrities to politicians to react to events in real time space. To think, plan or reconsider had been lost in the rush for instant comment and reaction. But neither Ted Turner nor nor Reece Schonfeld had been thinking about that when they set out on their extraordinary journey together. They had been looking to harness emerging technologies to deliver a familiar product in a revolutionary new way. They defied all those who had doubted whether a 24 hour news channel would be popular or whether such a thing was even possible. Their fiery temperaments and maverick ways meant their partnership was always likely to be short term. But CNN would not have succeeded without them. Both Ted and Reese needed each other. And together they didn't just make the news, they remade it. From Wondery this is episode four of Making the News for Business Movers. On the next episode, author Lisa Napoli explores how CNN pioneered a new form of television and how 24 hour news has changed America. If you like business movers, you can unlock exclusive episodes found nowhere else on Wondery and access new episodes early and ad free. Join Wondery plus in the Wondery app or on Apple Podcasts. Prime members can listen ad free on Amazon Music and before you go tell us about yourself by filling out a [e-mail] survey if you'd like to learn more about Ted Turner, Reese Schoenfeld and cnn, we recommend Me and Ted against the World by Reece Schoenfeld Mediaman by Ken Auletta and CNN the Inside Story by Hank Whittemore A quick note about our dramatizations. In most cases, we can't know everything that happened, but all our reenactments are based on historical research. Business Movers has hosted, edited and executive produced by me, Lindsey Graham for Airship Audio editing by Mohammed Shazi Sound design by Molly Bond Our supervising sound designer is Matthew Filler. Music by Thrum. This episode is written and researched by Owen Paul Nichols senior producer Scott Reeves. Executive producers are William Simpson for airship and Erin O'Flaherty, Jenny Lauer Beckman and Marshall Louie for Wondering.

[Unknown]

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