CNN has reached an undisclosed settlement with U.S. Navy veteran Zachary Young after a Florida jury found the network liable for defamation, awarding him $5 million in compensatory damages. The lawsuit stemmed from a 2021 segment on “The Lead with Jake Tapper,” which portrayed Young as exploiting Afghans seeking evacuation from Afghanistan by charging exorbitant fees. Young contended that this depiction was false and severely damaged his reputation and business.
During the trial, internal communications revealed CNN staff referring to Young in derogatory terms, raising questions about the network’s journalistic practices. Following the jury’s decision, CNN and Young agreed to a settlement to avoid the punitive damages phase. While the exact terms remain confidential, CNN stated, “We remain proud of our journalists and are 100% committed to strong, fearless, and fair-minded reporting at CNN.”
The trial also exposed CNN’s financial challenges. Testimony revealed that the network’s revenue declined from $2.2 billion in 2021 to $1.8 billion in 2023, an 18% decrease. Net income also dropped from $600 million in 2021 to $400 million in 2023. Additionally, CNN’s net worth fell by 47.7%, from $4.4 billion in 2021 to $2.3 billion in 2023. These declines are attributed to decreasing viewership and the broader industry shift from cable to streaming services.
In response to these challenges, CNN has implemented strategic changes. In October 2024, the network introduced a paywall, charging users $3.99 per month for access to exclusive content, aiming to diversify revenue streams amid declining cable subscriptions.
Furthermore, CNN announced plans to cut approximately 100 jobs and merge its television and digital news divisions to focus on digital expansion. CEO Mark Thompson emphasized the need to adapt to changing media consumption habits, stating, “There isn’t a media executive that isn’t actively working on that problem.”
These developments highlight the complex challenges CNN faces in maintaining journalistic integrity while navigating financial pressures and evolving industry dynamics.
