Media Monday: CNN-CBS News Pro Forma Realities & Fox-Roku Vulcan Chess

**Jon Kelly** (0:01)
I do think that this is one area, in particular, the CBS News, CNN integration, where you will see a lot of synergy, like a lot of synergy.

**Peter Hamby** (0:14)
Welcome to The Powers That Be Daily, Puck's podcast focused on the intersection of Wall Street, Washington, Silicon Valley, and Hollywood, and the players who run it all. I'm Peter Hamby.
It's Monday, June 22nd, which means it's Media Monday. Today, Jon Kelly and I talk about the joining of the Paramount News families. Yes, CBS News and CNN have started the process of merging their operations with Barry Weiss running the show. And as Jon and I discuss, it's not going to be easy. We also explain why Fox buying Roku is one of the savviest media plays in years. We'll talk about all that and much more on today's episode of The Powers That Be.

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**Peter Hamby** (1:34)
A quick stat for you. Phoenix Tourism is up 23 percent, Hotel Occupancy is at 89 percent, and a developer called Intersection Development, who already has 15 properties live and operating on Roosevelt Row in downtown Phoenix, has purchased the land for what might be the most interesting hotel project in the country. It's the first ever Atari Hotel. Before you write that off as a novelty concept, consider that the gaming industry just crossed $450 billion, bigger than film and music combined. This project sits at the crossover of that culture with one of the strongest hospitality markets in the US.
Even more interesting is that they filed a Reg A plus with the SEC, which means you can pull up the actual financials, projections, full deal structure, and become an investor. Check it out at atarihotels.com. So if you like alternative investments and doing your own due diligence, this one's certainly worth a look. That's atarihotels.com.
Happy Monday, everybody, and welcome to The Powers That Be. If it's Monday, it's Media Monday. I'm joined today by the boss man, Jon Kelly. We're gonna talk about the pending merger of CBS and CNN. Yes, it's actually happening, and what CBS News leadership would look like with CNN in its umbrella. It's a little complicated. Dylan's been reporting about this for us, and we're gonna go deep on that topic. We're also gonna talk about Fox and Roku, and why I think at least this is so smart for Fox, but I want the Jon Kelly take. Jon, good to see you, buddy. Let's talk about this CNN-CBS thing. I mean, Dylan filed on this late last week. Obviously, we've been covering this a lot. The story was kind of about the ongoing narrative that Paramount wants Barry Weiss to have a seasoned number two or wingman, wingwoman, probably a wingman, given how that place has been hiring, to sort of help manage the newsroom and have her back because she keeps making management mistakes. This role theoretically would just be managing the business. We've all talked about how that doesn't seem to make sense given the roster of talent that might step in. All of the people who are qualified for that sort of job also want to make editorial decisions. Anyway, what was more interesting to me about Dylan's piece was the details of this joining of the families, CBS and CNN. Tom Sobrowski, who is right now, I think, Barry's number two in the newsroom, was touring the CNN campus in Atlanta, which is mostly technical, logistical at this point. The real beating heart of CNN many years ago migrated to New York, and now it's over on the West side in Hudson Yards. And so a CNN insider texted Dylan and saying, I can't believe this is finally happening. This is actually happening. And they were saying it with fear and anxiety that I feel like my impression of that person sound more excited than they probably are. But Dylan said, yeah, this has been happening. But I was a little surprised too.
They are coming together. I don't know, any big thoughts on how this merger is going to go and how, gosh, who would lead CNN in this world? Because it feels like Mark Thompson wouldn't be there, even though he would be qualified to be working alongside Barry.

**Jon Kelly** (4:58)
Well, first an observation, Peter. I feel like actually Barry has gone silent in some ways. They just hired a modest level new talent that they brandished to the world and they're excited about it. But whether it's a mandate, whether it's inadvertent, whether it's just the job itself, or maybe Nick Bilton is just sort of handling a lot of it on the front line for her, she has, she's quieted. And I assume that part of it is she's busy, right?