CNN to invest $40 million in its video start-up Great Big Story

CNN will invest $40 million over the next two years in Great Big Story, transforming the in-house social video start-up into a 24-hour streaming channel.

Time Warner Inc.'s cable-news network launched Great Big Story in 2015 to make short videos about offbeat places and people, such as a mountain climber with no arms or legs, or the inventor of the Dothraki language from HBO's 'Game of Thrones.” The goal was to distribute videos on social media to reach millennials who don't watch CNN on television.

Starting next summer, Great Big Story will enter a new chapter, using the funding to fill a full-day programming schedule with a wider array of content, including live programming or feature-length films.

It'll distribute the streaming channel on the growing number of web-TV services such Dish Network Corp.'s Sling TV or AT&T Inc.'s DirecTV Now, said Andrew Morse, general manager of CNN's digital operations.

'This investment is to build something entirely new,” he said.

Morse said he wants to create 'live experiences,” like using drones or virtual reality to broadcast from a wildlife migration in the Serengeti or the bottom of a coal mine. CNN could eventually turn the online feed into a standalone subscription service or a traditional TV network, Morse said.

'We consider it a brand that plays well across all sorts of platforms,” he said.

Great Big Story, which has 40 employees, has raised $70 million to date and is valued at $200 million to $250 million, according to a person familiar with the matter. It expects to break even at the end of this year, not including its latest investment, Morse said.