Warner Bros. Discovery Took $825M In Content Write-Downs In Q2 – Deadline
Warner Bros. Discovery Friday detailed its fees for the second quarter that included a mixed $825 million hit on the content material facet, together with $496 million for content material impairment and $329 million for content material improvement write-downs, in addition to $208 million for worker terminations for the three months ended June.
As reported Thursday, WBD posted a web lack of $3.4 billion (or $2.2 billion professional forma) in its first quarter as a mixed company, recording $1 billion of restructuring and different fees (and $983 million of transaction and integration bills). An SEC submitting in the present day stated that, “Content impairments and development write-offs resulted from a global strategic review of content following the Merger. Employee terminations relate to cost reduction efforts and management changes. These charges resulted from activities to integrate WM and establish an efficient cost structure.”
Restructuring and different fees 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 improvement — behind the write-downs. Charges would solely apply to initiatives shelved earlier than the tip of June, others will booked in subsequent quarters.
High-profile cancellations throughout streaming and linear embrace successful from pulling the plug on CNN+. Wonder Twins for HBO Max was shut down in May. Batgirl and Scoob: Holiday Haunt motion pictures 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 Big D and Kill the Orange Bear.
HBO Max canceled Ellen DeGeneres’ preschool sequence Little Ellen HBO and Gordita Chronicles.
WBD execs confirmed yesterday that youngsters and animation content material throughout each streaming and linear networks can be lower “without an adequate investment case against them.”
CEO David Zaslav outlined plans to spend, particularly on HBO, however fastidiously.
On layoffs, many extra are doubtless. As Deadline reported, a primary wave is anticipated this month, persevering with into the autumn. Staff cuts didn’t come up on the presentation yesterday however are a part of streamlining the merged company, eliminating redundancies and hitting a promised $3 billion or extra in price synergies from the deal.