Warner Bros. Discovery Takes $9.1 Billion Balance Sheet Hit for Massive Drop in TV Network Values

variety.com:

Jennifer Maas TV Business Writer Warner Bros. Discovery reported its second-quarter 2024 earnings Wednesday, which included a $9.1 billion charge related to the devaluation of the company’s TV networks.

The $9.1 billion goodwill impairment charge, which is a non-cash, pre-tax figure, comes after an asset reevaluation that accounted for the difference between the “fair value” and “book value” of the networks, which have changed due to continued softness in U.S.

linear ad market and uncertainty around affiliate and sports rights renewals, including the NBA, two years after the close of WarnerMedia and Discovery’s merger.

These linear networks include Food Network, HGTV, Discovery, CNN, TNT, TBS and Cartoon Network/Adult Swim, among others. Additionally, the company’s net loss included $2.1 billion of “pre-tax acquisition-related amortization of intangibles, content fair value step-up, and restructuring expenses,” per WBD.