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Warner Bros. Discovery Takes Massive $11.2 Billion In Write-Downs & Charges In Q2 After Losing NBA
Warner Bros. Discovery is taking the hefty non-cash charge at linear television amid uncertainty in advertising and sports rights renewals.
Discovery is taking a hefty non-cash impairment charge, or write-down, of $9 billion at its networks division to align the book value of its linear television business with the reality of uncertain advertising and sports rights renewals as the NBA is set to move on. The value of the linear assets when Discovery and Warner Media merged two and half year ago was significantly higher that it is now as consumers migrated and advertising dipped. Zaslav had indicated early in the renewal process that the company didn’t absolutely need the NBA, but the lawsuit calls the loss a massive blow, which can’t make investors feel great.
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