Warner Bros. Discovery”. Friday detailed second-quarter charges that included a total of $825 million. USD content, including 496 mln. $329 million for content impairment and $208 million in content creation write-offs. USD for layoffs in the three months ending in June. .
As reported on Thursday, WBD In the first quarter, as a combined company, it posted a net loss of $3.4 billion (or $2.2 billion pro forma), recording $1 billion in restructuring and other charges (and $983 million in transaction and integration costs). According to an SEC filing today, “content impairments and development write-downs resulted from a global strategic review of content following the merger. The layoffs are related to cost-cutting efforts and management changes. These fees are due to the integration of WM and the creation of an efficient cost structure.
Restructuring and other charges by segment amounted to 200 million. USD for studies, 308 million USD for networks and 475 million USD per DTC.
The statement does not specify the content – neither produced, nor produced, nor created – behind the write-off. The charges would only apply to projects that have been delayed until the end of June, others will be commissioned in subsequent quarters.
High-profile cancellations for both streaming and linear include the cancellation of CNN+. Miracle twins because of HBO Max closed in May. Bat girl and Scoob: The Holiday Ghost movies also intended for the streamer were removed. HBO decided last month not to comply JJ AbramsHBO series Demimonde. TBS with an axe Big D and Kill the orange bear.
HBO Max canceled Ellen DeGeneres’ preschool series Little Ellen HBO and The Chubby Chronicles.
WBD executives confirmed yesterday that children’s and animated content on both the streaming and linear networks would be discontinued “without a proper investment case against them.”
CEO David Zaslav outlined rollout plans, particularly for HBO, but cautiously.
Many more are likely to be fired. As reported by Deadline, the first wave is expected this month and will continue into the fall. The job cuts were not announced yesterday, but are part of a streamlining of the combined company, elimination of layoffs and promised $3 billion or more in cost synergies from the deal.