Imagine if ABC had actually aggressively looked into Obama’s background back in 2008... Imagine if they had covered the Tea Parties fairly like Fox did... Imagine if they had hounded the Democrats during the Healthcare debate about WHY they were pushing something the American people DID NOT WANT! but it's too late now, they were more worried about pushing their socialist agenda then their jobs.
they could be expanding their news division now instead of cutting it
Yeah, but if they had done that they would have been utterly cut off, frozen out, from nearly all the sources they've developed over the years. They don't have any real reporters any more (they never had more than one at a time anyway, Brit Hume and one or two others who's names escape me are the only ones I can think of) and they'd be starting from scratch. Not only that, but NBC, CBS, and CNN would have turned on them in a heartbeat, characterizing them as a FOX-wannabe.
Even worse, no more parties, no more retreats, no more club memberships, and absolutely no chance of being hired into cushy jobs in the administration or the congressional staffs.
That would have been personal career suicide for individuals. This way, it's just organizational suicide.