Warner Bros. Discovery $825M for Content material Write-Off – The Hollywood Reporter

How many subjects are there The discovery of Warner Bros back from the WarnerMedia merger a few months ago? worth $825 million.

The company disclosed in a regulatory filing on Friday that it had taken an $825 million write-down on material after the deal. That figure includes a $496 million impairment on content, as well as a content development write-off of $329 million.

“A global strategic review of content following the Merger resulted in material weaknesses and development write-offs,” the company wrote in the filing.

The impaired and written-off figures were spread across the company’s studios business (including the film and television studios), its networks business (including the linear TV networks), and its DTC business, which includes streaming services such as HBO Max and Discovery+. The content impairments related to programs that had already been produced or were in production, while the development write-offs related to content that was still being developed.

And that dramatic figure probably doesn’t count Batgirl or Scoop!: Holiday Haunt, two films that, until this week, were set to debut on the HBO Max streaming platform. (Those films will most likely be accounted for next quarter.) However, a write-up related to the film would be included. Wonder coupleanother DC project for HBO Max that was in pre-production, and was closed in Maybefore C2 ended.

The filmmakers of Batgirl The project was said not to go ahead earlier this month, despite being well into post-production. Sources at the company revealed that they were planning to shelve the film for tax purposesand the reports revealed on Friday would support that.

The C2 devaluation probably includes some discontinued programs TBS and TNTand also costs associated with CNN+, the ill-fated streaming service that WBD closed down just a few weeks after it was sent. The filing also noted that the company incurred $208 million in employee termination costs in the quarter.

Programming from TBS and TNT has been cut back significantly since the merger, instead leaning into sports and unscripted fare. Comedy cut TBS Yes (which was already production completed in season), Full Start By Samantha Beeand Tracy Morgan’s The Last OGand TNT announced a final date for Snow drift. Script development was halted at both networks, and the company picked it up do not renew their deal to broadcast the SAG Awards.

On the company’s earnings call Thursday, WBD streaming chief JB Perrette said kids and animated content for linear and streaming movies, straight-to-series movies, and shows for TBS and TNT are most responsible for content recalibration, “specifically spending on content on [Turner] indicates that there was no path to generate sufficient ratings or incremental monetization potential.”

WBD, led by the CEO David Zaslav and CEO Gunnar Wiedenfels, is seeking about $3 billion in cost savings over the next few years related to the merger. Those savings will come in the form of merging technology and office systems, as well as layoffs, although it’s also clear part of the plan is to rethink how and where it spends money on content.

“Owning the content that people really care about is much more important than having a lot of content,” Zaslav said on the company’s earnings call Thursday.

“We will continue to have a healthy content investment, but with these two content portfolios coming together, we see smart opportunities to do this at a much more measured pace than previous plans,” Perrette added. . “These are difficult decisions, but we are committed to being disciplined under a framework that guides our investment in materials to achieve the greatest return.”

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