Warner Bros. Discovery Stock Crumples to Near All-Times Lows After Huge Q2 Impairment Charge
variety.comTodd Spangler NY Digital Editor Shares of Warner Bros. Discovery slid nearly 10% Wednesday, nearing all-time lows after the media conglomerate — heavily reliant on its pay-TV business — recorded a whopping $9.1 billion write-down reflecting the loss of value of several of its linear television networks.
In after-hours trading, WBD shares were down as low as $6.96 per share. The stock’s lowest closing price was on June 18, 2024, when it ended the day at $6.99 per share; it’s 52-week low intraday price is $6.94.
Year to date, Warner Bros. Discovery shares were already down 34%. As of the close of trading Wednesday, WBD’s market capitalization stood at $18.8 billion, compared with more than $50 billion following the closing of Discovery’s acquisition of WarnerMedia in April 2022.
When companies are forced to write down goodwill (an amount above the fair market value of an asset), they reduce that value from their balance sheets and record an expense on their income statement for the loss.
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