Warner Bros. Discovery Faces $11.2B Hit, Stock Falls 9.8% After $9.1B Impairment

Aug 7, 2024, 08:32 PM

Warner Bros. Discovery has reported a significant financial downturn in its second quarter, posting a nearly $10 billion loss, including a $10.2 billion operating loss. This includes a $9.1 billion non-cash goodwill impairment charge primarily due to the devaluation of its traditional TV networks, which encompass CNN, TNT, and others. The impairment reflects challenges in the US linear advertising market and uncertainties in affiliate and sports rights renewals, notably after losing NBA media rights. The company's total revenues for the quarter were $9.7 billion, a 5% decrease compared to the previous year. Warner Bros. Discovery also took an $11.2 billion hit overall and reported an EPS of $(4.07). The market cap of the company stands at approximately $18 billion. Warner Bros. Discovery's stock fell sharply, dropping as much as 9.8% following the announcement.