Financial News Network
The Financial News Network (FNN) was an American financial and business news television network that was launched November 30, 1981. The purpose of the network was to broadcast programming nationwide, five days a week for seven hours a day on thirteen stations, in an effort to expand the availability of business news for public dissemination. FNN was founded by Glen H. Taylor, a former minister of the Christian Church from 1950 to 1956, and producer of films for the California Department of Education.[1] The channel was purchased by NBC in February 1991, and operations were integrated with rival cable financial news network, CNBC, on May 21, 1991.
This article is about a 1980s financial news network. For the also defunct Time Warner cable news network, see CNNfn.Country
United States
See Below
Rodney Buchser, Dr. Glen H. Taylor and Merrill Lynch (1981–1991)
CNBC (1991)
Rodney Buchser
Glen H. Taylor
November 30, 1981
May 21, 1991
Later history[edit]
Financial scandals and accounting disputes[edit]
In 1990—only months after beginning its biggest advertising campaign ever—FNN fell prey to two of the main topics of its broadcasts, a financial scandal and an accounting dispute. During that year's audit, the network's auditor, Deloitte & Touche, discovered irregularities on the part of its chief financial officer, C. Steven Bolen. The irregularities were serious enough that Deloitte said its 1989 audit couldn't be relied upon. FNN launched an internal investigation and discovered what it called evidence of unauthorized payments that Bolen made to himself. Bolen was fired in October. In addition, Deloitte wanted FNN to report a $28 million investment into a data system for brokers as an expense. FNN claimed that this would push its balance sheet so far into the red that it would violate some covenants with its banks, as well as force a default on its line of credit. FNN replaced Deloitte with Coopers & Lybrand, and reported a $72.5 million loss for fiscal 1990. Needing a major cash infusion to stay in business, FNN put itself up for sale in November.
Proposed merger with CNBC[edit]
In February 1991, FNN reached a handshake agreement with a partnership of Dow Jones & Company and Westinghouse Broadcasting (Group W) for $90 million. However, just a few days later, FNN agreed to an unexpected $105 million offer from NBC, owner of FNN's then two-year-old rival, CNBC. NBC had encountered problems getting cable systems to carry CNBC, and intended to merge CNBC with FNN (at the time, CNBC was only in 17 million homes). However, matters were complicated in March when FNN filed for Chapter 11 bankruptcy, triggering a lively bidding war for the network.
Group W and Dow Jones raised their offer to $115 million, only to be turned down on a technicality by Bankruptcy Court Judge Francis Conrad; Dow Jones and Group W refused to keep the bidding open until May 31, 1991. NBC then raised its offer to $115 million, which was accepted by Conrad. That decision, however, was overturned on appeal.
Group W/Dow Jones and CNBC both significantly raised their bids. Group W/Dow Jones offered $167 million, while CNBC offered $154 million. However, the CNBC bid included more cash, and the Dow Jones/Group W bid included payments that were tied to revenue targets over three years. Conrad awarded FNN to CNBC, feeling its deal was more realistic.
Closure[edit]
FNN ceased operations at 6:00 p.m. Eastern Time on May 21, 1991. CNBC immediately took over FNN's satellite transponder space, more than doubling its audience at one stroke, and branded its business day programming as "CNBC/FNN Daytime" until 1992. CNBC also effectively adopted the on-air "look" and news style of FNN as well as incorporated features of FNN's ticker into its own on-screen stock ticker. While most of FNN's employees were laid off as a consequence of the merger (and eventually hired by Bloomberg L.P. to launch Bloomberg Television three years later on FNN's channel space), a select number of FNN anchors and reporters (including Bill Griffeth, Ron Insana, Allan Chernoff and Joe Kernen) were retained by CNBC. (Sue Herera, who joined FNN at age 21 and very soon became an anchor, moved to NBC and the brand-new CNBC prior to the demise of FNN; Griffeth and Herera were later reunited at CNBC and co-anchored Power Lunch until 2011, and subsequently anchored Nightly Business Report from 2018 until its closure in 2019.[11]) (Note: original pioneer Gene Inger did not become involved with FNN beyond affiliation on his stations; and did become an 'original Market Maven' frequent guest on CNBC. Inger declined staying with CNBC, having semi-retired to Florida; and remained a guest -usually with Mark Haines or Bill Griffeth- including the first remote fiber uplink to 30 Roc commentaries from Fort Lauderdale to CNBC. As of 2022 Inger continues to provide online daily market analysis.)