Warner Bros. Discovery now expects to incur a total pre-tax restructuring fee of $4.1-5.3 billion, which includes $2.8-3.5 billion from holding back content and development, as it takes too long on its programming. This is significantly higher than the combined company’s initial announcement of a fee of $3.2-4.3 billion related to restructuring and turnaround initiatives, which included $2-2.5 billion on the content side.
Restructuring is underway and “could result in an additional decline above revised estimates,” WBD noted in an SEC filing on Wednesday.
The restructuring initiatives are still expected to be substantially completed by the end of 2024.
The Company does not review previously disclosed estimates of the costs of enterprise restructuring, facility consolidation activities, other contract termination costs, or cash expenditures.
Two other original book series, Westworld And the nevers, Graduated from HBO Max. Unlike others we’ve reported, Lionsgate TV minx And the love life and Sony TVs Chubby Records – All comedy – Westworld And the Nevers It is a Warner Bros. Drama Productions. Discovery is produced by HBO proper, and I’ve heard it will likely appear again on the company’s other platforms.
In August, WBD detailed its fees for the June quarter which included $825 million on the content side, including $496 million for content impairment and $329 million for content development write-offs, as well as $208 million for employee terminations for the three months ending in June. Notable cancellations across broadcast and linear include a jab from pulling the plug on CNN+. Wonder Twins HBO Max closed in May. bat girl And the Scoop: Holiday Hunt Movies that were also set for the streaming device, were cancelled. HBO decided last month not to move forward with the J.J. Abrams series on HBO Dimond. TBS ruled out The Big D And the Kill the orange bear. HBO Max has canceled the Ellen DeGeneres preschool series Little Ellen HBO and Chubby Records. WBD said it would cut children’s content and cartoons across both its broadcast and linear networks.
In October, the David Zaslav-led company warned of between $1.3 billion and $1.6 billion in pre-tax restructuring charges for the third quarter ended in September as part of an ongoing consolidation of its operations, primarily from content write-offs. It then said that the total fee should be between $3.2 billion to $4.3 billion including “strategic content programming assessments” resulting in total content and development write-offs of about $2 billion – $2.5 billion.
Headlines continued to pour in from various departments, including CNN’s rethinking and layoffs. Deadline recently reported on two WB original series, Westworld And the Nevers Graduated from HBO Max.
The company officially completed its merger last April, leaving it with a heavy but also heavy debt burden. It has promised $3 billion in cost savings. Zaslav and his longtime CFO Gunnar Wiedenfels noted that Warner Media’s financial situation was more shaky than they realized, requiring decisive action. They also face a backdoor project by Wall Street against the previous era of money-losing economic outflows that is leading media companies to take a hard look at competing spending.
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