The media conglomerate expects to incur writedowns and merger-related costs of up to US$5.3bil (RM23.3bil), far above previous estimates as management continues to drop movie and TV projects. — Reuters
LOS ANGELES: Warner Bros Discovery Inc, the film and TV giant, expects to incur writedowns and merger-related costs of up to US$5.3bil (RM23.3bil), far above previous estimates as management continues to drop movie and TV projects.
The media conglomerate, created by the union of Discovery Inc and AT&T Inc’s WarnerMedia, had previously estimated such expenses at up to US$4.3bil (RM19bil).
The new sum was disclosed in a regulatory filing Wednesday.
“The company’s restructuring efforts are ongoing and could result in additional impairments above the revised estimates,” Warner Bros. said in the filing.
The restructuring won’t be substantially done until the end of 2024.
Management, led by chief executive officer David Zaslav, is grappling with the difficult task of merging two media companies while its biggest source of revenue, cable TV, loses customers to online rivals like Netflix Inc.
Newer streaming operations, while growing, aren’t making money yet.
The company’s scrutiny of spending has led to some high-profile cancellations and cuts of less-known shows.
The Hollywood Reporter said last week a new installment of Wonder Woman won’t be moving ahead as planned.
The company previously decided not to release a nearly complete Batgirl film.
It also pulled the costly sci-fi series Westworld from HBO after four seasons and cancelled the HBO Max comedy Minx.
Warner Bros has warned in October that significant post-merger costs loomed for the combined company. — Bloomberg
