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Warner Bros. Discovery Takes $11.2B Hit, $9.1B Charge; Stock Falls 9%
Aug 7, 2024, 08:12 PM
Warner Bros. Discovery has announced a significant financial setback, reporting a $9.1 billion non-cash goodwill impairment charge in its second-quarter results. This charge stems from a reassessment of the value of its traditional TV networks, including CNN and TNT, reflecting a massive drop in their market value. The impairment is attributed to the difference between market capitalization and book value, continued softness in the US linear advertising market, and uncertainty related to affiliate and sports rights renewals, including the NBA. As a result, Warner Bros. Discovery's total revenues for the quarter were $9.7 billion, showing a 5% decrease compared to the previous year. The company also reported a net loss of $10 billion for the quarter. The overall hit to the balance sheet was $11.2 billion, including the Q2 impairment charge. Following the announcement, Warner Bros. Discovery's stock experienced a sharp decline, falling 9% after hours.
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