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Warner Bros. Discovery Takes $9.1 Billion Balance Sheet Hit for Massive Drop in TV Network Values
Warner Bros. Discovery reported its Q2 earnings Wednesday, which included a $9 billion charge related to the devaluation of the companies TV networks.
The $9.1 billion goodwill impairment charge, which is a non-cash, pre-tax figure, comes after an asset reevaluation that accounted for the difference between the “fair value” and “book value” of the networks, which have changed due to continued softness in U.S. linear ad market and uncertainty around affiliate and sports rights renewals, including the NBA, two years after the close of WarnerMedia and Discovery’s merger. Discovery attributed a large portion of that growth to the international relaunches of Max (the combined and rebranded HBO Max-Discovery+ streamer, which debuted in the U.S. last spring). Discovery, our top priority is our global direct-to-consumer business and we are extremely pleased with the growing momentum we are seeing, as demonstrated by another strong quarter of growth with 3.6 million net adds, fueled by our ongoing international expansion and investment in high quality, diverse content,” Zaslav said in a letter to shareholders.
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