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Monday, August 15, 2022

Warner Bros. Discovery Takes $825 Million Tax Write-Down Amid Recent Cancellations

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According to a recent regulatory filing, Warner Bros. Discovery has taken an $825 million tax write-down on its canceled and canceled content. The newly formed company disclosed the information in documents on Friday (Via Hollywood Reporter), disclosing that this number comes from content that was completely canceled or removed in the second quarter of this year. That figure reportedly includes a $496 million loss on materials, which represent material that may have already been produced or was in production before being axed. It also included $329 million in content development write-offs, representing programming that did not make it past the development stage. Content belongs to various film and television studios of Warner Bros. Discovery, Linear Networks, and streaming services such as HBO Max and Discovery+.

“The global strategic review of content following the merger resulted in content loss and development write-offs,” Warner Bros. Discovery wrote in the filing.

This number reportedly does not include recent cancellations. bat girl And Scoob!: Holiday Hunt, which were first made public earlier this week. Both films, which were already completed and set to debut on HBO Max, were later reported to be canned for a tax write-down, which will be filed the following quarter. In the days that followed, Warner Bros. Discovery also removed six HBO Max-exclusive movies from its streaming platform, and canceled the already completed third season. little allen,

According to reports, this Q2 number could include the cancellation of DC’s HBO Max-exclusive wonder twins The film, which was abruptly called off in May this year after spending months in pre-production. The film will star KJ Apa and Isabel May as titular superhero twins. The Q2 numbers may also include several programming cancellations on TNT and TBS, both of which have suspended development of new scripted programming following the merger. This could also include CNN+, a streaming service that was shut down just weeks after its launch.

It all comes in the form of Warner Bros. Discovery CEO David Zaslav reportedly aims to cut $3 billion from the company’s budget over the next few years. The company has already announced plans to merge HBO Max and Discovery+ into a single streaming service, which will hypothetically happen as early as the summer of 2023.

“Owning content that really resonates with people is much more important than just having a lot of content,” Zaslav said on Warner Bros. Discovery’s quarterly earnings call earlier this week.

What do you think of this new report surrounding Warner Bros. Discovery’s tax write-down? Share your thoughts with us in the comments below!

Do not put your faith in this news source or website. You never know…

Reference from comicbook.com

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