Mark Thompson was previously director-general of the BBC and chief executive of The New York Times. Reuters
Mark Thompson was previously director-general of the BBC and chief executive of The New York Times. Reuters
Mark Thompson was previously director-general of the BBC and chief executive of The New York Times. Reuters
Mark Thompson was previously director-general of the BBC and chief executive of The New York Times. Reuters


Details man Mark Thompson completes hat-trick by taking on CNN challenge


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September 05, 2023

There is a deceptive steeliness to Mark Thompson – sorry, Sir Mark, it takes some getting used to, he was knighted in June. He smiles a lot, nods, his eyes sparkle mischievously, but behind that bearded jolly exterior, his mind is whirring away and his own view is forming.

That’s not to say he isn’t good company, he is. When he was director-general of the BBC from 2004 to 2012, I found him to be one of the most approachable chiefs of that corporation I’ve known.

Grounded, not mired in its peculiar love of management jargon and acronyms; someone who spoke directly, who made clear that despite the organisation’s strengthening of its digital products offering and the cutting of thousands of jobs on his watch, the priority for him was always content, and his passion was news.

I remember being impressed with his range of knowledge about the place’s vast output. It would be easy for him, as DG, to focus only on the big picture, strategic stuff and to say he didn’t have a clue when a matter regarding an aspect of programming was raised, that it was for an underling – he would not be the first or last BBC boss to do so – but no, he was across the subject.

In fact, it was that aspect which detained him, giving the impression that the loftier, political side of running a worldwide public service broadcaster was not so arresting. He was a good disarmer, was Mark.

He will need to be again, as he takes charge of another creaking, sprawling global media news network. He did it for a second time, heading The New York Times after the BBC. Now, Thompson is rolling up his sleeves again – he does not do formality, he is direct and down-to-earth, in manner and in dress – and taking on the might that was CNN.

In a way, when his appointment as chief executive and editor-in-chief was announced, the temptation was to ask, what took them so long? This is someone, after all, who has managed with distinction two of the world’s centrist media giants.

A hat-trick in another similarly positioned legacy media provider facing an uncertain future after a starry past, seemed a natural step.

CNN has been on a downward trajectory. Getty Images
CNN has been on a downward trajectory. Getty Images

He's doing so, though, at an age, 66, when other Brits of his ilk are thinking about accepting the gracious sinecure of master of an Oxbridge college and/or chairing a think tank and institutional board or two. He’d been out of the cauldron for three years, after The New York Times.

He was not doing very much, living in a vast apartment on the Upper West Side with his writer wife, Jane Blumberg (her father, Baruch, shared the Nobel Prize for his research into hepatitis B, which led to the development of a vaccine for it). They have three children.

Money was not a driver – from 2017 to 2019 alone he received $17.9 million as chief executive of The New York Times.

Thompson is not the sort to put his feet up. He bristles with energy and it was going nowhere. Then, there was a call from David Zaslav, chief of Warner Bros Discovery that has owned CNN since 2022, in the week in June when he was honoured by King Charles III.

The pair knew each other when Zaslav headed Discovery and they did deals with Thompson’s BBC. Zaslav had an immediate problem: CNN had no one fixed at the helm; Chris Licht, a veteran TV producer tasked with steering it, had been fired.

Licht had lasted 13 months, during which he failed to arrest a decline in ratings and staff morale dipped. The final straw was a highly negative profile in The Atlantic.

Mark Thompson has been appointed as chairman and chief executive of CNN. AP
Mark Thompson has been appointed as chairman and chief executive of CNN. AP

Apart from questions about Licht’s ability, his overriding problem could be summed up in one word: Trump. When Trump was on the stump and in power, CNN did well. It became an antidote to Fox News, unafraid to pick apart the president’s sayings and deeds.

He would rail against the channel for pumping out “fake news”; they would make a virtue of disbelieving him and sticking to “truth”. It was a stance that served them well – in 2017, CNN made a billion dollars. Since then, it’s been on a downwards trajectory, failing to make much of an impression in the Joe Biden years.

The New York headquarters of CNN. Getty Images/AFP
The New York headquarters of CNN. Getty Images/AFP

Zaslav took the view it was too activist, too left, he wanted a station that was straight-down-the-middle editorially, believing there was a ready audience for objective news. Licht could not deliver; now it’s Thompson’s turn.

Thompson inherits a force of 4,000 journalists and a situation not unlike that he encountered at the BBC. He used to criticise the BBC newsroom for being “too liberal” and showing an anti-Tory bias.

Partly, that was not helpful since the ruling party that decided the BBC’s funding was Tory but that was not his prime motivation, that was to produce accurate, unprejudiced news.

On paper, he appears the typical insider – private school, then Oxford, followed by the BBC. In truth, he is more of an outsider. His mother was Irish and as a child he spoke with an Irish accent, so much so his parents made him have elocution lessons to drop the twang and speak more refined English as they thought it would stand him in good stead career-wise.

He went to Stonyhurst, a Catholic, Jesuit boarding school in the North of England. He is still a devout attender at weekly Mass.

His solid upbringing coupled with a sharp intellect gave him an easy self-confidence. At the BBC, he was able to tiptoe through office politics, getting on with everyone, avoiding trouble. That, plus a rare ability to marshal and to organise, marked him out. By 30, he was producing what was then the flagship Nine O’Clock News.

At CNN, aside from the positioning issue to consider, there is a more fundamental, even existential, question, which is the network’s long-term appeal. Cable TV, across the board, is in trouble, with fewer subscribers and a decline in advertising.

Drawing in younger viewers, who prefer to put their faith in bite-sized chunks of news from all sorts of unreliable sources on social media is a tough ask.

Thompson moves in next month. From the off, he's made sure there’s no doubt who is in charge of everything. He’s the top businessperson as chief executive and top editorial as editor-in-chief.

That’s one potential source of conflict and disarray dealt with. And, in a note to CNN staff, he wrote, “I’ve spent most of the past 20 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 my plan that wins the day but our plan, the plan we devise and implement together.”

It's not easy, winning over dispirited, suspicious journalists and that was well-received. Things just may be looking up at last for CNN.

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PROFILE

Name: Enhance Fitness 

Year started: 2018 

Based: UAE 

Employees: 200 

Amount raised: $3m 

Investors: Global Ventures and angel investors 

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Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

Company profile

Company: Verity

Date started: May 2021

Founders: Kamal Al-Samarrai, Dina Shoman and Omar Al Sharif

Based: Dubai

Sector: FinTech

Size: four team members

Stage: Intially bootstrapped but recently closed its first pre-seed round of $800,000

Investors: Wamda, VentureSouq, Beyond Capital and regional angel investors

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What is graphene?

Graphene is extracted from graphite and is made up of pure carbon.

It is 200 times more resistant than steel and five times lighter than aluminum.

It conducts electricity better than any other material at room temperature.

It is thought that graphene could boost the useful life of batteries by 10 per cent.

Graphene can also detect cancer cells in the early stages of the disease.

The material was first discovered when Andre Geim and Konstantin Novoselov were 'playing' with graphite at the University of Manchester in 2004.

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Updated: September 12, 2023, 8:16 AM