Paramount Takes $5.98B Write-Down At Cable Networks Ahead Of Skydance Deal In Latest Big Media Damage From Linear TV

deadline.com:

Paramount Global has taken a massive hit to earnings, booking a nearly $6 billion write-down as part of its second-quarter earnings, a day after Warner Bros.

Discovery reported an even bigger charge. Both impairment charges to bring each to bring their carrying value for linear television assets into line with what they’re likely worth now – much less given years of declines and an uncertain future.

WBD’s, of $9.12 billion, was trigged by the recent loss of NBA games. The timing for Paramount is related to getting its book in order ahead of its acquisition by Skydance.

The agreement announced last month will move forward as of 11:59 pm ET August 21 if no other better offer emerges. Paramount’s impairment charged widened its operating loss to $5.3 billion from $250 million in the 2023 second quarter. “During the second quarter of 2024, we recorded a goodwill impairment charge for our Cable Networks reporting unit of $5.98 billion,” the earnings release said in a small footnote.