
CNN faces a $5 million defamation verdict as its financial woes come to light in a Florida courtroom.
At a Glance
- A Florida jury awarded Navy veteran Zachary Young $5 million in a defamation case against CNN
- The case stems from a November 2021 report by Alex Marquardt on Jake Tapper and Jim Acosta’s shows
- CNN’s revenue has dropped by $400 million over the past three years
- Despite revenue decline, CNN remains profitable with a $424.9 million cash flow profit in 2023
- The trial has entered a second phase to determine additional punitive damages
CNN Hit with $5 Million Defamation Verdict
CNN has been found guilty of defaming Navy veteran Zachary Young by a Florida jury.
It’s about time, too.
The court awarded Young $5 million in damages, dealing a blow to the news network’s reputation and finances. The case centered on a November 2021 report by Alex Marquardt that aired on shows hosted by Jake Tapper and Jim Acosta.
The verdict marks only the beginning of CNN’s legal troubles in this case. The trial has now entered a second phase to determine additional punitive damages owed by the network to Young. This development has put CNN’s financial health under scrutiny, revealing some concerning trends for the media giant.
As the trial progressed, forensic economist Robert W. Johnson took the stand to testify about CNN’s financials. His testimony provided a rare glimpse into the network’s economic situation, exposing a significant decline in revenue over recent years.
“Shortly after a Florida jury found that CNN had defamed Navy veteran Zachary Young and awarded Young $5 million in damages on Friday, the network was dealt a second blow as its revenue losses were publicly revealed on the witness stand,” Fox News’ Joseph Wulfsuhn said.
According to Johnson’s testimony, CNN’s revenue has experienced a sharp 18% drop over the past three years. The network’s revenue stood at approximately $2.2 billion in 2021, decreased to $2.0 billion in 2022, and further declined to $1.8 billion in 2023. This $400 million revenue loss paints a picture of a network facing significant financial challenges.
Profitability Amid Revenue Decline
Despite the alarming drop in revenue, CNN has managed to maintain profitability. Amazingly.
Johnson’s testimony revealed that the network recorded net incomes of $600 million in 2021, $300 million in 2022, and $400 million in 2023. Moreover, CNN reported a cash flow profit of $424.9 million in 2023, indicating that the network remains financially viable despite its struggles.
“The numbers provided a rare look at the financial health of a cable news behemoth. It also showed that in spite of its struggles, CNN remains extremely profitable,” Fox News’ Joseph Wulfsuhn said.
As the trial moves into its punitive damages phase, Johnson suggested using CNN’s revenue, rather than net income or cash flow profit, to calculate any additional penalties. This recommendation could potentially lead to more substantial damages for Young, considering CNN’s multi-billion dollar annual revenue.
As of now, CNN has not provided an immediate response to the verdict or the revelations about its financial situation. The network faces not only the $5 million in damages already awarded but also the prospect of additional punitive damages. This legal battle and its financial implications could have far-reaching consequences for CNN’s operations and reputation in the competitive news media landscape.
If they keep lying, we better keep suing – because when we do, we win.