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Tuesday, August 9, 2022

Warner Bros. Discovery Took $825M Hit For Content material Write-Downs, $208M For Layoffs In Q2

Warner Bros. Discovery Friday detailed its costs for the second quarter that included a mixed $825 million hit on the content material aspect, together with $496 million for content material impairment and $329 million for content material growth write-downs, in addition to $208 million for worker terminations for the three months ended June.

As reported Thursday, WBD posted a internet lack of $3.4 billion (or $2.2 billion professional forma) in its first quarter as a mixed firm, recording $1 billion of restructuring and different costs (and $983 million of transaction and integration bills). An SEC submitting at this time stated that, “Content material impairments and growth write-offs resulted from a world strategic evaluation of content material following the Merger. Worker terminations relate to price discount efforts and administration adjustments. These costs resulted from actions to combine WM and set up an environment friendly price construction.”

Restructuring and different costs by section stood at $200 million for studios, $308 million for networks and $475 million for DTC.

The submitting didn’t specify the content material — both produced, in manufacturing or in growth — behind the write-downs. Expenses would solely apply to initiatives shelved earlier than the top of June, others will booked in subsequent quarters.

Excessive-profile cancellations throughout streaming and linear embody a success from pulling the plug on CNN+. Surprise Twins for HBO Max was shut down in Could. Batgirl and Scoob: Vacation Hang-out films additionally set for the streamer, have been scrapped. HBO determined final month to not transfer ahead with J.J. Abrams’ HBO sequence Demimonde. TBS axed The Huge D and Kill the Orange Bear.

HBO Max canceled Ellen DeGeneres’ preschool sequence Little Ellen HBO and Gordita Chronicles.

WBD execs confirmed yesterday that children and animation content material throughout each streaming and linear networks can be lower “with out an ample funding case towards them.”

CEO David Zaslav outlined plans to spend, particularly on HBO, however fastidiously.

On layoffs, many extra are possible. As Deadline reported, a primary wave is anticipated this month, persevering with into the autumn. Workers cuts didn’t come up on the presentation yesterday however are a part of streamlining the merged firm, eliminating redundancies and hitting a promised $3 billion or extra in price synergies from the deal.

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