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More restaurants and retailers are launching their limited-time pumpkin items in August, according to Technomic data.
Starbucks, Krispy Kreme, IHOP and Dunkin’ are among the chains launching their fall menus before Labor Day.
Some consumers may grumble over the early seasonal launches, but research has convinced companies that stretching out fall is worth it.

Starbucks’ iced pumpkin cream chai tea latte.
Source: Starbucks

In most of the U.S., tree foliage is green and temperatures are warm. But for many restaurants and retailers, fall is already here.
Halloween candy and pumpkin spice lattes used to wait until after Labor Day to make their annual debuts, ushering in the start of fall several weeks before the season officially begins. But in the past few years, restaurants and retailers have been releasing their autumnal food and beverages even earlier.

The number of limited-time pumpkin launches more than doubled to 86 in August 2022 compared with 2019, according to Technomic, which tracked the top 500 restaurant chains and top 40 convenience stores. November is still the most popular month to launch limited-time pumpkin items timed for Thanksgiving, but August is gaining ground.
Restaurants’ and retailers’ extended fall also comes as pumpkin food and beverages become more popular throughout the autumn. In 2019, restaurants and convenience stores launched 268 pumpkin-themed seasonal items. By 2022, the number had more than doubled to 559 items.
Ken Harris, managing partner at Cadent Consulting Group, said three reasons have driven the shift.
“[The companies] make money from it, the stuff tastes good and they have consumer research that says they have permission to push the boundaries of timing,” he told CNBC.
As schools have pushed for an earlier start to the school year, Labor Day has lost some of its status as a seasonal indicator. Since many families are preparing for school in August anyway, fall seems right around the corner. Picking up Halloween candy during back-to-school shopping helps some parents kill two birds with one stone.

Pumpkin spice lattes in August

Starbucks claims credit for the rise of pumpkin-themed drinks and food, stemming from the introduction of its pumpkin spice latte 20 years ago.
“Go back 20 years ago, nothing pumpkin existed in the marketplace. The only thing you could find in the grocery aisle was a pumpkin puree,” Peter Dukes, one of the original creators of Starbucks’ pumpkin spice latte, said at a recent press event celebrating two decades of the drink.
The coffee chain also takes the brunt of the ire of consumers who chafe at the early introduction of fall menus. Since 2018, Starbucks has re-released the pumpkin spice latte in August. Its Aug. 24 launch this year is tied with 2021 as the earliest rollout yet for its fall menu.
“It does tend to be at the end of August, which is that time that our customers are returning to their routines,” Starbucks spokesperson Erin Stan said.
As Starbucks has pulled the fall season earlier, it has also adjusted its menu. In 2019, it launched the pumpkin cream cold brew, its second-ever pumpkin drink. This year, Starbucks added the iced pumpkin cream chai latte to its menu.
Both drinks address the rising popularity of cold drinks, which account for more than three-quarters of all Starbucks beverage orders, no matter the season. They also happen to be more temperature-appropriate options for late August, when many consumers are still battling the heat and seeking air conditioning.
But Eleni Demestihas, a 28-year-old lawyer based in Denver, plans to delay drinking her first pumpkin spice latte of the season, even though she prefers them iced. Demestihas said she typically waits until she can wear a sweatshirt all day — likely sometime in mid-October.
Until then, she’ll just be enjoying the PSL-themed memes.

Dunkin’ beats Starbucks to the pumpkin punch

For all the grumbling over Starbucks’ early fall menu, some of its rivals entered the arena even earlier. Dunkin’, which is privately owned by Inspire Brands, released its autumn menu Aug. 16, eight days before Starbucks launched its items. Krispy Kreme rolled out its pumpkin spice doughnut lineup Aug. 7.
IHOP released its fall menu, including pumpkin spice pancakes and pumpkin spice cold foam cold brew, on Aug. 28, six days later than its launch last year.
“Generally speaking, for us, the timing of anything like this is really based on consumer insights,” IHOP Chief Marketing Officer Kieran Donahue told CNBC.
The Dine Brands chain typically sells about one million of its pumpkin spice pancakes every time they return to menus.
“The fact of the matter is, it’s a popular menu item … I think we could offer it at any time and people would buy it,” Donahue said.
Lizzy Freier, director of menu research and insights at Technomic, said it’s too soon for her to enjoy a pumpkin spice latte. Her hometown of Chicago is expecting temperatures to exceed 90 degrees on Labor Day.
Luckily for Freier, Demestihas and other consumers who plan to hold off on enjoying their favorite fall treats, the early kickoffs haven’t led companies to pull items faster, according to Freier.
And fear not — plenty of companies are sticking to normal seasonal boundaries.
Reynolds’ Hefty isn’t releasing its cinnamon pumpkin spice-scented trash bags until September. More

The U.S. Department of Health and Human Services has recommended easing restrictions on marijuana, a spokesperson for the Drug Enforcement Administration told CNBC on Wednesday. 
That move could potentially expand the market for cannabis, sending shares of Canopy Growth, Tilray Brands and Cronos Group higher.
Marijuana is currently classified as a Schedule I drug, a designation reserved for drugs with no currently accepted medical use and a high potential for abuse, such as heroin.

James Romano trims flower while working in the CommCan processing facility in Medway, Massachusetts, Oct. 27, 2021.
Erin Clark | Boston Globe | Getty Images

The U.S. Department of Health and Human Services has recommended reclassifying marijuana as a lower-risk drug, which would in turn ease restrictions on the budding business, a spokesperson for the Drug Enforcement Administration told CNBC on Wednesday. 
Marijuana is currently a Schedule I drug under the Controlled Substances Act, meaning it’s deemed to have no currently accepted medical use and a high potential for abuse. Despite being legalized for recreational use in nearly half of states, marijuana’s federal classification alongside drugs such as heroin and LSD has hindered the industry’s growth.

After enjoying a sales surge during the Covid-19 pandemic, the industry is in free fall as investors turn away and capital dries up. The industry has also been barred from accessing most banking services, or from being traded across state lines, resulting in a glut of cannabis in many states and a drop in prices.
A federal reclassification could potentially expand the market for marijuana, which is a multibillion-dollar industry in the U.S. and a cash crop in many newly legalized states.
The news sent shares of several cannabis companies, including Canopy Growth, Tilray Brands and Cronos Group, jumping Wednesday.
In a letter addressed to DEA officials, the HHS called for marijuana to be reclassified under the Controlled Substances Act, a DEA spokesperson told CNBC. Bloomberg, which first reported the recommendation, said the letter called for marijuana to be reclassified as a Schedule III drugs, defined as drugs with a moderate to low potential for physical and psychological dependence.
The DEA, which regulates controlled substances, has the final authority to reschedule marijuana. The agency will now initiate a review of the drug, the DEA spokesperson said.

A lack of federal regulation has meant cannabis businesses in states where recreational sales are legal still can’t access traditional banking services or institutional capital. A congressional bill called the Secure and Fair Enforcement Banking Act, or SAFE, would lift such restrictions but hasn’t made it through the Senate, despite passing in the House several times.
Patrick Rea, managing director at cannabis investment firm Poseidon Garden Ventures, said his fund is “cautiously optimistic” for the changes a reclassification could bring to the industry.
“Certainly, moving cannabis off of Schedule 1 is the right decision and long overdue,” Rea said in a statement. “Though a full descheduling would be preferred and likely most appropriate for cannabis, we welcome smart decisions and progress towards full legalization and regulation in the legal cannabis industry.”
Correction: A spokesperson for the Drug Enforcement Administration told CNBC the agency received a letter from the Department of Health and Human Services calling for marijuana to be reclassified under the Controlled Substances Act. A previous version of this story mischaracterized the spokesperson’s statement. More

Sixteen attorneys general sent a letter to SEC Chair Gary Gensler asking the agency to ensure Shein can independently verify it doesn’t use forced labor before it’s permitted to go public.
The company said tests show about 2.1% of Shein’s cotton comes from banned regions, which is far below the industry standard.
The fast-fashion retailer told CNBC it has stopped sourcing cotton from China altogether as part of its efforts to get that number to zero.

A woman with a Shein bag after entering its first physical store in Madrid, June 2, 2022.
Europa Press News / Contributor

Fast-fashion juggernaut Shein is facing more scrutiny from elected officials in the U.S. who want the company to prove it doesn’t use forced labor before it files for a widely rumored initial public offering. 
Attorneys general from 16 states sent U.S. Securities and Exchange Commission Chair Gary Gensler a letter last week asking the agency to ensure Shein and other foreign companies are following U.S. law before they’re permitted to trade on American exchanges. 

“It is apparent that SHEIN is attempting to launch an IPO before the end of this calendar year. An IPO of this magnitude—involving a foreign-owned company that is facing credible concerns about its core business practices—cannot move forward on self-certification alone,” the missive, written by Montana’s Attorney General Austin Knudsen and signed by 15 other Republican attorney generals, stated. 
“We urge you to require, as a condition of being listed on a U.S. based securities exchange, that any foreign-owned company certify via a truly independent process that it is compliant with Section 307 of the Tariff Act of 1930, which prohibits the import of any product manufactured wholly or in part by forced labor.” 
The letter was sent Thursday, the same day the company announced it was taking a stake in Forever 21’s parent company Sparc Group.
Shein has faced accusations that it used forced labor from the Xinjiang region in China to fuel its meteoric rise as rumors swirl that it is preparing to go public. The company’s supply chain has a large presence in China, where it was founded, but U.S. law prohibits imports from Xinjiang because of widespread human rights abuses against Uyghurs in the region. 
The company is currently under investigation by the House Select Committee on the Chinese Communist Party, which has also accused Shein of evading U.S. tariff law. The probe comes as U.S. lawmakers from both parties increasingly scrutinize companies from China or those with potential ties to its government.

The letter cited a Bloomberg story published last year that showed, via independent testing, that some Shein clothes were made with cotton from the Xinjiang region. 
Shein has faced enormous blowback from the report. The accusations have become a major hurdle the retailer must overcome before it can grow its presence in the U.S. and go public. 
At the time of the Bloomberg report, Shein and its executives rarely spoke publicly. But since then, it has become more open to press, and has acknowledged to CNBC that some of its cotton supply has been found to come from the Xinjiang region. 
To test its cotton, it contracted the supply chain tracing firm Oritain, which says it’s able to track the origin of cotton fibers down to specific farms. Between June 2022 and July 2023, it has conducted 2,111 tests, which resulted in 46 positive results, or a rate of 2.1%, from banned regions, Peter Pernot-Day, Shein’s head of strategy and corporate affairs, told CNBC. 
“These are in raw materials so when we have a raw material positive test, that means that raw material is removed from production,” Pernot-Day said.
Oritain, which bills itself as an independent firm, previously confirmed those results to Politico and said Shein has fared better than the fashion industry on average. 
Each year, the company tests more than 1,000 cotton samples. During a recent testing round across the industry, Oritain found 12% of samples came up positive for an “unapproved region,” Politico previously reported. 
Pernot-Day said one of Shein’s primary objectives at the moment is to get its positive test results down to zero. To do that, it is conducting testing from all 40 of its mills each month, and stopped buying cotton from China altogether, Pernot-Day said. More

Medicare is set to negotiate prices for 10 different drugs with manufacturers in a bid to make those costly treatments more affordable for older Americans.
But analysts say the drug price talks will likely have a muted financial impact on manufacturers, at least in the near term. 
That’s because other factors are already expected to weigh on the revenue and profits of the drugs on the list, which could minimize any negative impact from lower negotiated prices.

In this photo illustration, Eliquis is made available to customers at the New City Halsted Pharmacy on August 29, 2023 in Chicago, Illinois.
Scott Olson | Getty Images

Medicare is set to negotiate prices for 10 different drugs with manufacturers in a bid to make those costly treatments more affordable for older Americans – a process the pharmaceutical industry fiercely opposes.
But analysts say the drug price talks will likely have a muted financial impact on manufacturers, at least for this first round of prescription medicines. 

That’s because other factors are already expected to weigh on the revenue and profits of the drugs on the list, which could minimize any negative impact from lower negotiated prices that are set in place. For example, many of the drugs are already facing strong competition from other branded medications or patent expirations in the coming years that will open the market to generic alternatives. 
More broadly, some of the drugs on the list aren’t significant contributors to their company’s business in the first place.
“The commercial impact of negotiations appears limited in the near term for this initial list of drugs,” Mara Goldstein, managing director of Mizuho Securities, told CNBC.
That could change in future rounds of negotiations, analysts say.
The Biden administration unveiled the much-awaited list of drugs Tuesday, officially kicking off a lengthy negotiation process that will end in August 2024. The reduced prices won’t go into effect until January 2026. 

The list names drugs with the highest spending for Medicare Part D, which covers prescription medications, from June 2022 to May 2023. That includes blood thinners from Bristol-Myers Squibb and Johnson & Johnson, and diabetes drugs from Merck and AstraZeneca. 
However, there’s a chance that the negotiated prices will never actually go into effect. Several drugmakers, including a handful whose medications are on the list, have filed lawsuits in different federal courts seeking to stop the negotiations. That could set up split appellate court decisions and fast-track the dispute to the Supreme Court. 
Meanwhile, the U.S. Chamber of Commerce, one of the largest lobbying groups in the country, is seeking a preliminary injunction to halt negotiations before Oct. 1. That’s the same day drugmakers have to sign agreements to participate in the negotiations. It’s unclear whether that effort will be successful. 

Patent expirations, branded competition

New negotiated prices in 2026 may have a minimal financial impact on drugs already expected to see revenue and profits decline due to upcoming patent expirations and branded competition. 
For example, Merck’s Type 2 diabetes drug Januvia could lose exclusivity in mid-2026 – only a few months after the negotiated prices go into effect. Goldstein said she expects to see 90% of the volume from Januvia go to cheaper generic competitors within the first few months of the patent expiration. 

The drugs on Medicare’s list this year

Eliquis, made by Bristol-Myers Squibb, is used to prevent blood clotting, to reduce the risk of stroke.
Jardiance, made by Boehringer Ingelheim, is used to lower blood sugar for people with Type 2 diabetes. 
Xarelto, made by Johnson & Johnson, is used to prevent blood clotting, to reduce the risk of stroke.
Januvia, made by Merck, is used to lower blood sugar for people with Type 2 diabetes.
Farxiga, made by AstraZeneca, is used to treat Type 2 diabetes.
Entresto, made by Novartis, is used to treat certain types of heart failure.
Enbrel, made by Amgen, is used to treat rheumatoid arthritis. 
Imbruvica, made by AbbVie, is used to treat different types of blood cancers. 
Stelara, made by Janssen, is used to treat Crohn’s disease.
Fiasp and NovoLog, insulins made by Novo Nordisk

“So, doing any negotiating for Januvia today seems like kind of a moot point since it will be losing exclusivity in 2026 and seeing this decline due to generic competition,” she told CNBC. 
The same is true for AstraZeneca’s Type 2 diabetes drug Farxiga, which will lose exclusivity in 2026, and other drugs on the list with later patent expirations, according to a note from David Risinger, an analyst at Leerink Partners. 
Johnson & Johnson’s blood thinner Xarelto and Novartis’ heart failure drug Entresto are both expected to lose exclusivity in 2027. That means the companies may only feel the impact of negotiated prices for their drugs for about one year before generic competition minimizes the effect of that, Risinger wrote. 
Eliquis, a blood thinner from Bristol-Myers Squibb and Pfizer, is slightly more exposed to the impact of negotiated prices since its patent expires in 2028. But that risk will likely be manageable.
“We think Bristol/Pfizer could take a low-mid single-digit hit to their respective 2026 revenue … due to Eliquis negotiation,” Bank of America analyst Geoff Meacham said in a research note Tuesday, adding that the effect of negotiated prices will be limited to 2026 and 2027.
Branded competition is another factor that could mute the impact of negotiated prices, Meacham added.
For example, AbbVie’s blood cancer drug Imbruvica could see steep declines before its negotiated price goes into effect in 2026, largely due to “competitive erosion” from similar treatments like AstraZeneca’s Calquence and Beigene’s Brukinsa, according to Meacham.
Competition between similar branded medications has already resulted in rebates and discounts paid to Medicare Part D for some of the drugs on the list. That raises questions about how much lower of a price Medicare can negotiate. 

Cantor Fitzgerald analyst Louise Chen also emphasized that many of the drugs on the list aren’t the key growth drivers of their companies in the first place. That means any decline in a drug’s sales and profits may do little to affect the company’s overall business and stock.
For example, Merck’s Januvia is a smaller revenue and earnings contributor than other drugs in the company’s pipeline, such as its blockbuster cancer drug Keytruda or HPV vaccine Gardasil. Januvia generated $4.5 billion in revenue last year, while Keytruda raked in $21 billion. 

The next negotiations could be different

But Chen said that could change in 2028 and beyond, when negotiations will also start targeting drugs in Medicare Part B.
Part B covers more specialized medications that are administered by doctors or other health care providers rather than pharmacies. That includes Keytruda and other biologic medications, which are created using living cells or organisms.
“When we get to more biologics, the impact is going to be a lot more significant because those products are much more expensive and impact the earnings and growth of these companies a lot more,” Chen said. 
Mizuho’s Goldstein also added that drug price negotiations will likely have more of a long-term impact on companies, even if it “certainly feels muted right at this moment.”
Over time, negotiations could change a company’s drug development strategy. 
Negotiated prices prevent companies from maintaining pricing power over a treatment, so “the thought process is that continuing to reinvest in a drug to add additional indications has a less compelling return,” according to Goldstein. Expanding indications refers to using a drug to treat a different disease. More

Walmart kicked off its first seller summit for its third-party marketplace Wednesday.
The big-box retailer also announced plans to attract and retain sellers, such as expanding to Chile and offering fulfillment services for big and bulky items.
The company lags behind Amazon in the e-commerce space but has posted double-digit online sales growth in the past two quarters.

Walmart is hosting its first seller summit businesses that are part of its third-party marketplace. The two-day event includes how-to sessions and remarks by the retailer’s top leaders.
Melissa Repko | CNBC

LAS VEGAS — Walmart is looking for new ways to woo sellers to its third-party marketplace, as it pushes to drive more online sales and close a wide gap with rival Amazon.
On Wednesday, the big-box retailer kicked off its inaugural Walmart Marketplace Seller Summit, a two-day invitation-only event of how-to sessions drawing more than 1,500 people from businesses that sell clothing, party supplies, jewelry and more on Walmart’s website. The event will be headlined by some of Walmart’s top leaders, including CEO Doug McMillon.

The company on Wednesday also announced new efforts to attract and retain sellers. Starting early next year, its marketplace will expand to Chile, the first country beyond North America. It is increasing the number of brand shops on its website, a way for sellers to create their own eye-catching digital storefronts where they can highlight certain products.
It is also adding an option that allows sellers to pay Walmart to fulfill online orders of bigger and bulkier items, such as canoes, or items that come in multiple boxes, such as a patio set. It’s also making it possible for sellers with a store to use Walmart’s technology to power curbside pickup or the company’s network of delivery drivers to drop online purchases at customers’ doorsteps.
Walmart is ramping up its focus on its third-party marketplace, as the company chases higher-margin e-commerce sales and pledges to grow its profits at a faster rate than revenue over the next five years. To do that, Walmart is adding automation to more warehouses and stores. It has also gotten into businesses outside of retail that are more lucrative, such as selling advertising, last-mile delivery and fulfillment services.
In a blog post Wednesday announcing the marketplace changes, Manish Joneja, senior vice president of Walmart Marketplace and Walmart Fulfillment Services, described the business as an “endless aisle where sellers of all sizes can offer customers the items they need and love.”
He said customers get a wider selection of items to buy, whether that merchandise is owned by Walmart or a third-party seller. Walmart and the seller’s business grow at the same time, he added. Sellers share a portion of their marketplace profits with Walmart.

Joneja is one of the Amazon veterans Walmart has poached to grow its marketplace business. He also previously worked for marketplace eBay. Walmart also hired another Amazon veteran, Jare’ Buckley-Cox, as vice president of Walmart Fulfillment Services.
Sellers that participate in the marketplace are also potential customers for Walmart’s newer businesses since they can hire Walmart to pack and ship orders or to advertise their products. The number of sellers using Walmart Fulfillment Services grew more than 50% in the most recent fiscal quarter, Chief Financial Officer John David Rainey said on an earnings call earlier this month.
Walmart is the nation’s largest retailer, but it lags far behind Amazon in online market share and e-commerce sales. Walmart’s annual online sales were less than one-fifth of Amazon’s last year, according to Insider Intelligence. Walmart is a distant second in market share to Amazon, which captured nearly 38% of e-commerce sales in the U.S. last year compared with Walmart’s roughly 7%, according to the market researcher’s estimates.

Arrows pointing outwards

Walmart’s marketplace is also much smaller than Amazon’s, despite launching in 2009. Walmart has not disclosed how many vendors are part of its marketplace, but it sells to customers in the U.S., Canada and Mexico.
Amazon, on the other hand, operates a store website that’s open to sellers in 22 countries, including Australia, Germany, Japan and the United Arab Emirates. It has used its Amazon Prime membership program to drive higher online sales volumes.
Though it trails far behind Amazon, Walmart has shown signs of momentum. For the past two quarters, its U.S. business has posted double-digit online growth as other major retailers such as Target, Best Buy and Macy’s have posted declines. E-commerce sales for Walmart U.S. jumped 27% in the fiscal first quarter and 24% in the fiscal second quarter compared with the year-ago period.
On an earnings call earlier this month, Rainey said the number of customers buying items on Walmart’s marketplace increased 14% in the fiscal second quarter. He said general merchandise sold well on the platform during the three-month period, with double-digit growth across the home and apparel categories, even as Walmart and other retailers have seen weaker discretionary spending. More

Kentucky-based Brown-Forman Corporation fell short of Wall Street expectations for its first fiscal quarter.
The wines and spirits company maintained its full-year outlook.
The company saw some growth across its ready-to-drink and tequila categories, but whiskey sales lagged.

Jack Daniel’s Tennessee Whiskey
Getty Images

Jack Daniel’s maker Brown-Forman on Wednesday fell short of Wall Street expectations for its first quarter of fiscal 2024, plagued by lagging whiskey sales, supply challenges and a significant inventory rebuild.
Net sales for whiskey products decreased by 1%, led by the brands Woodford Reserve and Gentleman Jack. Sales for Jack Daniel’s Tennessee Whiskey were flat, the company said, due to lower distributor inventories across the United States.

“As anticipated, our first quarter growth was impacted by the difficult shipment comparison from fiscal 2023, when we rebuilt inventory impacted by prior glass supply challenges,” said Lawson Whiting, CEO of the Kentucky-based wines and spirits company.
Net sales in the U.S. market decreased 8% amid volume declines.
Meanwhile the company saw growth in its ready-to-drink, or RTD, and tequila categories.
Its New Mix RTD beverages delivered strong net sales growth of 52%, while its el Jimador tequila brand saw net sales grow by 27%. The company’s recent acquisition of its Gin Mare and Diplomático brands were also a bright spot.
“We continue to be confident in the strength of our people, our brands, and our business, and reaffirm our full-year fiscal 2024 guidance of 5-7% organic net sales growth and 6-8% organic operating income growth,” Whiting said in a release.

The company reported overall quarterly revenue up 3% year over year and maintained its full-year outlook.
Here’s how Brown-Forman did for the three-month period that ended July 31, compared with what analysts expected, according to consensus estimates from Refinitiv:

Earnings per share: 48 cents vs. 53 cents expected
Revenue: $1.04 billion vs. $1.05 billion expected

Net income for the period was $231 million, or 48 cents per share, down 7% from the prior-year period, when the company reported net income of $249 million, or 52 cents per share.
Marketing and operating costs soared during the quarter, outpacing revenue growth and weighing on profits.
Reported advertising expense grew 19%, driven by the launch of its Jack Daniel’s & Coca-Cola RTD item, increased investment in Jack Daniel’s Tennessee Whiskey, and acquisitions.
— CNBC’s Robert Hum contributed to this report. More

Warner Bros. Discovery has named Mark Thompson as its next CEO and chairman of cable news network CNN.
Thompson previously served as president and CEO of The New York Times, as well as director-general of the BBC.
Thompson’s appointment comes a few short months after the ouster of Chris Licht.

Mark Thompson speaks during the CNBC Evolve New York event on June 19, 2019.
Astrid Stawiarz | CNBC

Mark Thompson is stepping in as the next CEO and chairman of CNN.
Parent company Warner Bros. Discovery said Wednesday it appointed Thompson as the next leader of the cable news network, a few short months after the ouster of Chris Licht.

Thompson previously served as CEO and president of The New York Times from 2012 to 2020, as well as director-general of the BBC from 2004 to 2012. Thompson’s first day at the CNN office will be Oct. 9, he told CNN staffers in a memo.
“I am confident he is exactly the leader we need to take the helm of CNN at this pivotal time,” Warner Bros. Discovery CEO David Zaslav told staff in a note Wednesday. “Big thanks to all of you for your patience, commitment, and hard work. Simply stated: the real strength of CNN is its people, and you continue to set the highest standard in all that you do.”
The appointment of Thompson, a 40-year news veteran who was recently knighted for his services in media, occurs just as the presidential campaign cycle in the U.S. accelerates.
Thompson takes the reins of CNN as cord-cutting has ramped up for the traditional TV bundle and ratings have lagged behind other cable news competitors. Last week, Warner Bros. Discovery announced it would add CNN to its Max streaming service beginning Sept. 27. It will serve as the network’s answer to streaming as a 24/7 live news hub.
“As everyone knows, TV journalism is approaching peak disruption. We face pressure from every direction – structural, political, cultural, you name it. Like many other media organizations, CNN has recently felt some of the uncertainty and heartache that comes with all of that,” Thompson wrote to CNN staff. “There’s no magic wand that I or anyone else can wield to make this disruption go away. But what I can say is that where others see threat, I see opportunity – especially given CNN’s great brand and the strength of its journalism.”

His hiring also follows what has been a tumultuous time for the cable news network, especially for its leadership.
In early 2022, longtime leader Jeff Zucker resigned after failing to disclose a romantic relationship with a high-ranking colleague – who also once served as communications director to ex-New York Gov. Andrew Cuomo. Zucker’s resignation came as a shock to staffers. Shortly after, prime time host Chris Cuomo was fired after CNN said it obtained new information about his controversial role in advising his brother.
Soon after Zucker stepped down, CNN’s parent company ownership changed hands with the merger of Warner Bros. and Discovery. Prior to closing the deal, Zaslav had appointed Licht as CNN’s CEO, who was previously the chief executive behind the “CBS This Morning” news program and “Morning Joe” on MSNBC. At the time, Zaslav called Licht a “dynamic and creative producer, an engaging and thoughtful journalist, and a true news person.”
One of Licht’s first moves was the swift closure of CNN+, the cable news network’s then-newly launched streaming platform that was failing to garner viewership in its early days.
Licht’s time at CNN was short, however. In June, Licht departed CNN after leading the network for little more than a year that included a series of programming missteps and rock-bottom ratings. He had also drew criticism in the weeks before his ouster after CNN hosted a town hall with Donald Trump that was packed with tons of fans who cheered on the former president as he pushed election lies and insulted host Kaitlan Collins.
Shortly after, The Atlantic published an unflattering 15,000-word profile of Licht titled “Inside the Meltdown at CNN,” which likely sealed his fate. Although Licht apologized to CNN staffers it wasn’t enough and his departure was announced in the ensuing days.
While network executives Amy Entelis, Virginia Moseley, Eric Sherling and David Leavy led CNN since Licht left CNN, Warner Bros. Discovery brass searched for a replacement for the leadership role.
Read Zaslav’s memo to staff:
All,
I wanted to tell you first that we will be welcoming a new leader for CNN Worldwide. Shortly, we will announce that highly respected news executive Mark Thompson will be joining our leadership team as Chairman and CEO, effective October 9, reporting directly to me. Mark has been in the news business for more than four decades and, as many of you are aware, he has an exceptional track-record of innovation and excellence. I am confident he is exactly the leader we need to take the helm of CNN at this pivotal time.
I’ll share more about Mark in a moment. But before I do, I want to say that I recognize change is not easy, and I know you’ve been through a lot of it. Big thanks to all of you for your patience, commitment, and hard work. Simply stated: the real strength of CNN is its people, and you continue to set the highest standard in all that you do.
I want to give a special thanks to Amy, David, Virginia and Eric for the exceptional job they’ve done leading CNN and moving the business forward during this interim period. They pulled together as a team and really delivered, and I am personally grateful for their hard work and sacrifices, as they added significant responsibilities on top of their substantial functional roles. I know they’ll be a huge help to Mark when he comes on board.
Mark has led and transformed two of the world’s most respected news organizations. Most recently, he served as president and CEO of The New York Times from 2012-2020, building the company into a digital-subscription powerhouse. In fact, under his leadership, the Times increased its paid digital subscriptions tenfold and more than doubled its total digital revenues.
Before that, Mark served as director-general of the BBC from 2004-2012, where he presided over one of the world’s biggest newsrooms as well as scores of national and international TV and radio services and extensive global digital news assets. He led the development of the BBC iPlayer, the world’s first streaming service from a major broadcaster, expanded web and smartphone services from news to education to entertainment, and oversaw coverage of the biggest events of the time from the global financial crisis of 2008-09 to the 2012 Olympic Games in London. Before becoming a senior executive, Mark was a working researcher, director, field producer and award-winning showrunner in the BBC’s news division.
I’ve long admired Mark’s transformative leadership and his ability to inspire organizations to raise their own ambitions and sense of what’s possible… and achieve it. I’ve spent a lot of time talking with him over the last few weeks and couldn’t be more excited for all that’s in store.
Please join me in welcoming Mark to the team!
David
Read Thompson’s note to CNN staffers:
Dear all,
No doubt you’ve heard the news and read David Zaslav’s message confirming that I’m to be CNN’s next Chairman and CEO. I just wanted to add a few words of my own.
I can’t tell you how pleased and proud I am to be joining you after so many years of watching – and envying – your work from the outside. Over the decades, I’ve bumped into CNN teams on story after story from Washington, DC to Tiananmen Square. Two months ago I spent a day watching CNN’s spell-binding coverage of the Wagner rebellion, and I watched and read our major competitors too. That day confirmed an old truth to me: when it matters most, CNN is the best place to find out what’s happening. You always rise to the occasion.
As everyone knows, TV journalism is approaching peak disruption. We face pressure from every direction – structural, political, cultural, you name it. Like many other media organizations, CNN has recently felt some of the uncertainty and heartache that comes with all of that. There’s no magic wand that I or anyone else can wield to make this disruption go away. But what I can say is that where others see threat, I see opportunity – especially given CNN’s great brand and the strength of its journalism. I’ve spent most of the past twenty years figuring out with colleagues at some of the world’s other great news operations not just how to survive the revolution, but to thrive in it and gain new audiences and revenue streams. I aim to do the same at CNN. It won’t be myplan that wins the day but our plan, the plan we devise and implement together. Which is why, particularly in the early weeks, you’ll find me doing a lot more listening and learning than holding forth.
I want to add my personal thanks to the interim leadership team. Amy, David, Virginia and Eric have done a terrific job steering the ship over the past couple of months and I look forward to working with them.
My first official day in the office is 9 October but I’m planning to pop in a few times before then. So if you see a tall figure with an English accent and a loud laugh, you’ll know who it is.
All the best,
Mark  More