CBS Television City in Los Angeles. (Photo via JHVEPhoto/Getty Images)
On Wednesday evening, inboxes across the media world lit up with a bombshell from Dylan Byers’ newsletter. The Puck correspondent reported, citing two people familiar with CBS News’ finances, that the organization is losing “around $50 million a year.” It was a startling figure, especially given that CBS is already under a microscope following Paramount’s decision to cancel “The Late Show with Stephen Colbert” amid reports that it was bleeding $40 million annually. Both the late-night show and the news division fall under the purview of Paramount executive George Cheeks. If both figures were accurate, Cheeks would be presiding over a sea of red ink.
Naturally, the Byers item immediately generated buzz. With David Ellison’s Skydance Media newly in control of Paramount and former NBCUniversal chief Jeff Shell freshly installed as Paramount president, many industry watchers saw the scoop as a harbinger of painful cost-cutting. Shell has made no secret of his desire to run the company more efficiently (in fact, he said it is what he is looking forward to most as Ellison’s top lieutenant), and a report of $50 million in annual losses would all but guarantee drastic belt-tightening at CBS News.
But less than 24 hours later, there was a twist. CBS…
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