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

deadline.com:

Warner Bros. Discovery Friday detailed its charges for the second quarter that included a combined $825 million hit on the content side, including $496 million for content impairment and $329 million for content development write-downs, as well as $208 million for employee terminations for the three months ended June.As reported Thursday, WBD posted a net loss of $3.4 billion (or $2.2 billion pro forma) in its first quarter as a combined company, recording $1 billion of restructuring and other charges (and $983 million of transaction and integration expenses).

An SEC filing today said 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 other charges by segment stood at $200 million for studios, $308 million for networks and $475 million for DTC.The filing didn’t specify the content — either produced, in production or in development — behind the write-downs.

Charges would only apply to projects shelved before the end of June, others will booked in subsequent quarters.High-profile cancellations across streaming and linear include a hit from pulling the plug on CNN+.