Talks Between CNN, ABC News Focus on Sharing Resources

CNN and ABC News have held high-level talks over the last two weeks about everything from a strategic alliance for sharing the nuts and bolts of news gathering to a CNN proposal for establishing an all-out partnership under CNN’s control, according to sources familiar with the situation.

The talks between the AOL Time Warner Inc.-owned cable news network and ABC, a unit of Walt Disney Co., follow discussions between CNN and CBS News about a possible collaboration that faltered on the issue of control.

ABC executives largely rejected the idea of a CNN-controlled entity, but the two sides are still in serious discussions about sharing bureaus, correspondents and resources, the sources said.

ABC News declined to comment.

A CNN spokeswoman repeated the network’s earlier statement--issued when word of its possible linkage with a broadcast news outlet first surfaced--saying, “It is not surprising that CNN’s worldwide news-gathering capability has made us an attractive potential partner for other news organizations. We are certainly open to discussing this issue with our colleagues at other networks, but we will not discuss it in the press.”

Like CBS, which is owned by Viacom Inc., ABC News has been at a disadvantage without a cable news outlet that would allow it to amortize costs and boost its presence in a crowded media world, as General Electric Co.’s NBC News has done with MSNBC. CNN, meanwhile, could use an alliance to add star power to its lineup, in addition to cutting costs.

ABC News is under continuing pressure to reduce its overhead, despite eliminating 120 positions this year and slicing about $20 million from its annual budget. The cuts were made through voluntary buyouts, attrition and elimination of some high-profile correspondents.

CBS has similar pressures, but talks with CNN--first broached years ago and revived this spring--stalled on the issue of control. CBS News President Andrew Heyward, speaking to TV critics in Pasadena last month, said he was “guardedly pessimistic” about the chances of a deal.

ABC earlier had told CNN it would be interested in talking if the CBS discussions broke down. New CNN News Group Chairman Walter Isaacson and ABC News President David Westin are friends as well as neighbors in Bronxville, N.Y.

On a separate matter, CNN said Isaacson’s recent visits courting Republican leaders in Washington, first reported by the publication Roll Call, “don’t reflect any strategic change of direction” for the network. CNN, which has been accused by critics of being too liberal, has seen its ratings challenged by more conservative-friendly Fox News Channel. A CNN spokeswoman said Isaacson “intends to drop in on people on both sides of the [political] aisle on a regular basis . . . and is going to hear out whoever has a point of view.”