Warner Bros. Discovery Takes $9 Billion Write-Down on Cable Networks

Warner Bros. Discovery, the parent company of multiple TV networks, announced a $9.1 billion write-down of its TV networks’ value, indicating the ongoing decline of traditional cable. The company’s CEO, David Zaslav, acknowledged the challenges faced by legacy media companies and stated that the write-down aligns their carrying values with future prospects. Write-downs are common for public companies when a business segment’s value significantly decreases. Warner Bros. Discovery, like other traditional media companies, aims to compensate for declining cable profits by generating revenue from its streaming services. Despite this, the company’s stock price has continued to decrease, prompting suggestions for restructuring or asset sales. Warner Bros. Discovery recently experienced a setback with its unsuccessful bid for National Basketball Association (NBA) game rights. NBCUniversal outbid the company, rendering a comparable TV package uneconomical.