Lou Dobbs was beaming in front of the throng of reporters at CNN's New York studio, basking in the attention. After a wayward 22-month orbit to run an outer-space Web site and appear on syndicated radio, Dobbs on Tuesday announced his re-entry into television as the sole anchor and managing editor of CNN's Moneyline News Hour. As he surveyed the room, eyes wide before a host of cameras, he smiled and suggested, "Maybe I should do Moneyline in front of a studio audience."
It was a pure Dobbs moment, said some CNN staffers, who often bristled at the anchor's hubris. He was such a polarizing force that even CNN Chairman Tom Johnson acknowledged that he had vetoed Dobbs' return in the past though he maintained it was for practical reasons. "I didn't feel Lou could be the head of Space.com and business news at CNNfn," said Johnson. "Now I'm delighted."
For CNN, acquiring a big name to lead the show was an imperative after Moneyline co-anchor Stuart Varney unexpectedly resigned last month. The new brass has big plans to rename its financial news channel CNNfn as CNN Money, giving it a more personal finance slant, and incorporating news and information flowing from corporate partners Time Warner Cable, Time Inc. and AOL. Key to the strategy is reviving its flagship business news show in the face of heavy competition from cable rival CNBC's Business Center. Since Dobbs left CNN, Moneyline has lost about a quarter of its former audience, which has taken a hit on the revenue it generates for CNN. And CNNfn, which he developed, remains dwarfed by market leader CNBC.
"Lou played a leading role in creating this franchise," said Phil Kent, president of the CNN News Group and a strong proponent of bringing Dobbs back. "He's one of the greatest news personas ever to work at CNN," Dobbs said. "I can't wait to start winning again."
Dobbs' return to the anchor seat on May 14 comes after just a few weeks of negotiations, according to CNN executives. Kent said Johnson initially made the suggestion that he come back, which seems remarkable in light of the rough times the two had with each other before Dobbs' departure. Current Moneyline co-anchor Willow Bay will be reassigned to other CNN series and specials that have yet to be determined. CNN management stressed that unlike Dobbs' previous 19-year term at the network - where he was head of CNN's financial news unit in addition to his on-air role - this time he will not have any management responsibilities. Dobbs appeared fine with the call. "A shared role is not appropriate," he said. "Both are full-time jobs. I want to give all my energy and time (to anchoring)."
For years, Dobbs was the most recognizable face associated with business news on television. With the rise of CNBC, that image risked fading away, but Dobbs did his best to keep himself in the public eye, including issuing a daily business radio report distributed by NBC. "He was in danger of becoming 'Lou who?' But he kept his name out there. He played the media very well," said one CNN insider.
Now that he's back, CNN, desperate to reverse its declining fortunes, will keep Dobbs front and center. In addition to Moneyline, Dobbs will write regular columns for the CNNfn Web site, and anchor a future program on CNNfn summarizing the day in business. He'll also assist CNN with its editorial goal of improving coverage of personal finance on television. "We'll seek different outlets and platforms to showcase Lou's talents," said Ken Jautz, executive VP and general manager of CNN Business News and CNNfn. But Dobbs will have to make new friends, as many of the high-priced, on-air people he hired for CNNfn during his tenure were sacked in the post-merger bloodbath last summer.
Terms of Dobbs' five-year deal were not disclosed. But his salary is
